QUESTION 1.

A
Money Measurement Concept
Accounting period concept

The money measurement concept states that a business should only

record an accounting transaction if it can be expressed in terms of money.
This means that the focus of accounting transactions is on quantitative
information, rather than on qualitative information. Thus, a large number
of items are never reflected in a company's accounting records, which
means that they never appear in its financial statements.
Accounting period concept helps in estimating the profit or loss and
financial position of a business for a particular period. If there are
different accounting periods then various problems can arise like in the
calculation of profits, comparability of various incomes & expenses etc.
Thus, to study the results of a business, the life of a business is divided
into short periods of equal length. Each such period is known as
accounting period.

Expenses
Rental expenses
Salaries expenses
Interest on loan expenses
Utilities expenses

Non-current asset
Office equipment
Furniture
Cardio machine
Treadmill
QUESTION 1.B
1) Brought in vehicle RM15000 for business use.
2) Bought equipment for business use RM5000 and paid by cash RM2000.
Balance is on credit RM3000.
3) Bought supplies RM750 and paid by cash.
4) Perform service for Ammar Enterprise RM8500 and getting paid
RM4000. Balance is on credit.
5) Paid RM1500 for account payable.
6) The owner withdrew RM2000 for personal use.
7) Paid rent expenses RM560
8) Paid RM450 on account receivable
9) Paid salaries and wages expenses RM4800
10) Paid utilities payable RM400

(ii) Cash :
15000-2000-750+4000-1500-2000-560+450-4800
= RM7840

(iii) Net income = Revenues – Expenses

Service Revenue 8500

Expenses :
Rental expenses 560
Salaries and wages expenses 4800
Utilities expenses 400
Total expenses 5760
Net income 2740
QUESTION 2.A
July 1 Owner brought in furniture RM15000 and vehicle RM45000 for business use
4 Purchased two (2) photostat machine for business use at RM4990 each from
Shifa Electrical Enterprise on cash
6 Sold furniture to Ami Décor Sdn Bhd on credit, RM17680 with credit term of
3/15, n/30. FOB destination
7 Purchased merchandise from Glossary Furniture by cheque, RM29650
8 Purchased merchandise RM50500 on credit from Dlia Jati Sdn Bhd with credit
terms of 2/10, n/30. FOB shipping
9 Paid transportation cost RM700 for transaction July 6 by cash
10 Sent a credit note to Hassan Al-Bana Sdn Bhd on defect furniture, RM2680
11 Sold two (2) furniture at a price of RM4550 each to Madinna Sdn Bhd. The
amount was paid by cash on the same day. The cost of furniture was RM6050
13 Sold furnitures to Nadhirah Corporation on a credit of RM25000 with credit
term of 3/10, n/30
14 Paid transportation cost RM1350 for transaction July by cash
15 Settled all the Cahaya Muslim Sdn Bhd debt and payments were made by
cheque
15 Purchased merchandise at RM17000 from Alice Wonderland Enterprise with
credit term of 2/10, n/30
17 Received payment from Hassan Al Bana Sdn Bhd for previous balance by
cheque
19 Received half payment from (transaction 6 July)
20 Paid all debt to Asiah Indah Sdn Bhd by cheque with RM200 discount

21 Received a credit note from (transaction 15 July) on defect furniture RM1500

25 Received all payment from Khaulah Sdn Bhd by cheque
27 Paid office rent RM2000 for July 2020 by cash
28 Paid salaries expenses in cash RM4200

2. A. i)
Encik Ammar is the owner of Jati Ombra Enterprise which has started its
business selling furniture. On July 1, Encik Ammar brought in furniture
RM15000 and vehicle RM45000 for business use. Encik Ammar rent the
building at 55 Jalan Pengkalan Barat, Taman Kar King, Ipoh Perak with a
monthly rental RM2000. Encik Ammar run a merchandising type of business.
He also hires 1 manager with a monthly salary RM1800 and 2 workers with
monthly salary RM1200 each. The business pays all monthly expenses by cash.
The financial statement will be recorded on every end of the month.

2.A.ii)
a) Transaction on 6 July :

INVOIS
No: In4002
Jati Ombra Enterprise Tarikh: 6 Julai
55 Jalan Pengkalan Barat, 2020
Taman Kar King, Ipoh Perak.

To:
Ami Décor Sdn Bhd
312, Jalan Bandar Putri Jaya
Bandar Putri Jaya, 08000
Sungai Petani, Kedah.

Item Unit price Total

Description Quantity
no. (RM) (RM)
1. Furniture 1 17680 17860

: Discount 3/15
JUMLAH 17860

....................................... ........................................
. Jati Ombra Enterprise
Customer
b) Transaction on 10 July :

CREDIT NOTE No: NK0021

Date : 10 July 2020
Jati Ombra Enterprise
55 Jalan Pengkalan Barat,
Taman Kar King, Ipoh Perak.

To :
Hassan Al-Bana Sdn Bhd
Lot 88, Jalan Merpati,
Bandar Meru Indah,
Ipoh Perak.

Return of defect furniture :

Unit
Total
Num Description Quantity price
(RM)
(RM)
1. Furniture 1 2680 2680

JUMLAH 2680
E. & O.E.

................................
(Jati Ombra)
 SALES JOURNAL Dr. Acct
Receivable
Date Account Debited Ref Cr. Sales
July RM
6 Ami Décor Sdn Bhd 3/1 17680.00
5
11 Nadhirah Corporation 3/1 25000.00
0
42680.00

QUESTION 2.A.iii)

PURCHASES JOURNAL Dr. Purchases

Date Account Debited Ref Cr. Acct. Payable
July RM
8 Dlia Jati Sdn Bhd 2/10 50500.00
15 Alice Wonderland Enterprise 2/10 17000.00
67500.00
 CASH RECEIPT
JOURNAL
Date Account Credited Ref Bank Cash Sales
(Dr) (Dr) Discount
(Dr)
July RM RM RM
11 Sales 9100
17 Hassan Al-Bana 17320
19 Ami Décor 3/15 8575 265
25 Khaulah Sdn Bhd 23500
49395 9100 265

CASH PAYMENT
JOURNAL
Date Account Debited Ref Bank Cash Purchases
(Cr) (Cr) Discount
(Cr)
July RM RM RM
4 Office Equipment 9980
7 Purchased 29650
9 Freight-out 700
14 Freight-in 1350
15 Cahaya Muslim Sdn Bhd 9500
20 Asiah Indah Sdn Bhd 8000 200
27 Rent expenses 2000
28 Salaries expenses 4200
47150 18230 200
 GENERAL JOURNAL
Date Ref Debit Credit
July RM RM
1 Furniture 15000
Capital 15000
(bought furniture for business use)

1 Vehicle 45000
Capital 45000
(bought furniture for business use)

10 Sales return and allowances 2680

Account receivable 2680
(sales return)

21 Account payable 1500

Purchases returns and allowances 1500
(purchases return)
 BANK
Date Explanation Ref Debit Credit Balance
July 1 Balance b/f 102450
31 Multiple account 49395 151845
Multiple account 47150 104695

CASH
Date Explanation Ref Debit Credit Balance
July 1 Balance b/f 52900
31 Multiple account 9100 62000
31 Multiple account 18230 43770

PURCHASES
Date Explanation Ref Debit Credit Balance
July Account payable 67500 67500
31
7 Bank 29650 97150

PURCHASES
DISCOUNT
Date Explanation Ref Debit Credit Balance
July Account payable 200 200
20

PURCHASE RETURN
 AND ALLOWANCE
Date Explanation Ref Debit Credit Balance
July Account payable 1500 1500
21

SALES
Date Explanation Ref Debit Credit Balance
July Account receivable 42680 42680
31
11 Cash 9100 51780

SALES DISCOUNT
Date Explanation Ref Debit Credit Balance
July Account receivable 265 265
19

SALES RETURN AND

ALLOWANCE
Date Explanation Ref Debit Credit Balance
July Account receivable 2680 2680
10

ACCOUNT
RECEIVABLE
Date Explanation Ref Debit Credit Balance
July 1 Balance b/f 43500
31 Sales 42680 86180
19 Sales discount 265 85915
17 Bank 17320 68595
19 Bank 8575 60020
25 Bank 23500 36520
10 Sales return and allowance 2680 33840
ACCOUNT PAYABLE
 Date Explanation Ref Debit Credit Balance
July 1 Balance b/f 17700
31 Purchases 67500 85200
20 Purchases discount 200 85000
15 Bank 9500 75500
20 Bank 8000 67500
21 Purchases return and 1500 66000
allowance

OFFICE EQUIPMENT
Date Explanation Ref Debit Credit Balance
July 4 Cash 9980 9980

FURNITURE
Date Explanation Ref Debit Credit Balance
July 1 Capital 15000 15000

VEHICLE
Date Explanation Ref Debit Credit Balance
July 1 Capital 45000 45000

FREIGHT-OUT
Date Explanation Ref Debit Credit Balance
July 9 Cash 700 700

FREIGHT-IN
Date Explanation Ref Debit Credit Balance
July Cash 1350 1350
14
 RENT EXPENSES
Date Explanation Ref Debit Credit Balance
July Cash 2000 2000
27

SALARIES EXPENSES
Date Explanation Ref Debit Credit Balance
July Cash 4200 4200
28

CAPITAL
Date Explanation Ref Debit Credit Balance
July 1 Balance b/f 268150 268150
1 Furniture 15000 283150
1 Vehicle 45000 328150
 QUESTION 2.A.v)
SUBSIDIARY LEDGER ACCOUNT RECEIVABLE
AMI DÉCOR SDN BHD
Date Explanation Ref Debit Credit Balance
July 6 Sales 17680 17680
19 Bank 8575 9105
19 Sales discount 265 8840

NADHIRAH CORPORATION
Date Explanation Ref Debit Credit Balance
July 11 Sales 25000 25000

HASSAN AL-BANA SDN

BHD
Date Explanation Ref Debit Credit Balance
July 1 Balance b/f 20000
10 Sales return and allowances 2680 17320
17 Bank 17320 0

KHAULAH SDN BHD

Date Explanation Ref Debit Credit Balance
July 1 Balance b/f 23500
23500 0
 SUBSIDIARY LEDGER ACCOUNT PAYABLE

DLIA JATI SDN BHD

Date Explanation Ref Debit Credit Balance
July 8 Purchases 50500 50500

ALICE WONDERLAND
ENTERPRISE
Date Explanation Ref Debit Credit Balance
July 15 Purchases 17000 17000
21 Purchases return and 1500 15500
allowances

CAHAYA MUSLIM SDN

BHD
Date Explanation Ref Debit Credit Balance
July 1 Balance b/f 9500
15 Bank 9500 0

ASIAH INDAH SDN BHD

Date Explanation Ref Debit Credit Balance
July 1 Balance b/f 8200
20 Bank 8000 200
20 Purchases discount 200 0
ACCOUNT DEBIT(RM) CREDIT
(RM)
Bank 104695
Cash 43770
Inventory on 1 July 2020 43800
Capital 328150
Purchases 97150
Purchases discount 200
Purchases return and allowance 1500
Sales 51780
Sales discount 265
Sales return and allowance 2680
Account receivable 33840
Account payable 66000
Office equipment 9980
Furniture 15000
Vehicle 45000
Freight-out 700
Freight-in 1350
Rent expenses 2000
Salaries and wages expenses 4200
452430 452430
JATI OMBRA ENTERPRISE
TRIAL BALANCE
31 JULY 2020
QUESTION 2.B
1. Inventory as at June 30 RM15000
2. The prepaid insurance is for 15 months started from November 2019.
3. Long term loan interest for the year ended 30 June 2020 will be paid in July 2020.
4. Depreciation of buildings and office equipment for the current year is RM3500 and
RM1620 respectively.
5. Accrued salaries and wages RM1800 was not yet recorded
6. Unearned rent revenue as at 30 June 2020 is RM1000
7. Iman the owner of TIE had taken RM2000 from the business for his family used.
8. Office supplies on hand until 30 June 2020 was RM1150
9. On June 30, 2020 Encik Dali, a debtor was declared bankrupts. His account balance is
RM2000. Imam Teguh Enterprise decided to write off Encik Dali’s account.

JOURNAL STATEMENT

DEBIT CREDIT
DATE ACCOUNT (RM) (RM)
       
1 INSURANCE EXPENSES 4000  
  PREPAID INSURANCE   4000
2 INTEREST EXPENSES 1500  
  INTEREST PAYABLE   1500
3 DEPRECIATION EXPENSE - BUILDINGS 3500  
ACCUMULATED DEPRECIATION -
  BUILDINGS   3500
DEPRECIATION EXPENSE - OFFICE
4 EQUIPMENT 1620  
ACCUMULATED DEPRECIATION - OFFICE
  EQUIPMENT   1620
5 ACCRUED SALARIES AND WAGES EXPENSE 1050  
ACCRUED SALARIES AND WAGES
  PAYABLE   1050
6 CASH 2000  
  DRAWINGS   2000
7 RENTAL REVENUE 1000  
  UNEARNED RENTAL REVENUE   1000
8 OFFICE SUPPLIES EXPENSE 1150  
  OFFICE SUPPLIES   1150
9 BAD DEBT EXPENSE 2000  
  ACCOUNT RECEIVABLE   2000
 IMAM TEGUH ENTERPRISE
ADJUSTED TRIAL BALANCE
FOR THE YEAR ENDED 30 JUNE 2020

DEBIT CREDIT
ACCOUNT (RM) (RM)
CASH 13350
BANK 23367
ACCOUNT RECEIVABLES 29700
OFFICE SUPPLIES 1150
PREPAID INSURANCE 3500
LONG TERM INVESTMENT 20000
LAND 50000
BUILDING 127500
ACCUMULATED DEPRECIATION - BUILDING 41750
OFFICE EQUIPMENT 60100
ACCUMULATED DEPRECIATION - OFFICE
EQUIPMENT 10635
ACCOUNT PAYABLE 23500
LONG TERM (6% PER ANNUM) 25000
UNEARNED RENT REVENUE 1000
CAPITAL 158450
DRAWINGS 14000
SALES 288400
PURCHASES 89000
SALES RETURNS 3000
SALES DISCOUNT 3050
PURCHASE DISCOUNT 2250
INVENTORY AS AT JULY 1, 2019 15000
SALARIES AND WAGES EXPENSE 59000
ADVERTISEMENT EXPENSE 14800
UTILITIES EXPENSE 9348
REPAIRS EXPENSE 5500
INTEREST EXPENSE 2250
INSURANCE EXPENSE 4000
LONG TERM INTEREST PAYABLE 1500
DEPRECIATION EXPENSE - BUILDING 3500
DEPRECIATION EXPENSE - OFFICE EQUIPMENT 1620
ACCRUED SALARIES AND WAGES 1800
RENTAL REVENUE 2800
OFFICE SUPPLIES EXPENSE 2850
BAD DEBT 2000
PURCHASE RETURNS 5500
562585 562585
 PERNIAGAAN IMAM TEGUH ENTERPRISE
STATEMENT OF PROFIT OR LOSS
RM RM RM
Sales 288400
- sales discount (3050)
- sales return and allowances (8000)
Net sales 277350

Less : Cost of Good Sold

Beginning inventory 15000
+ purchases 89000
- purchases discounts (5500)
- purchases returns and allowances (2250)
Net purchases 81250
Cost of Goods Available for Sale 96250
- ending inventory (15000)
Cost of Goods Sold (81250)

Gross Profit 196100

+ Other revenue
Rent received 2800
198900
Less : Operational Expenses
Insurance expenses 4000
Depreciation expenses – building 3500
Depreciation expenses – office equipment 1620
Office supplies expenses 2850
Bad debt expenses 2000
Salaries and wages expenses 59000
Advertise expenses 14800
Utilities expenses 9348
Repairs expenses 5500
Interest expenses 2250 104868

Net Profit 94032

FOR THE YEAR ENDED 30 JUNE 2020

 PERNIAGAAN IMAM TEGUH ENTERPRISE
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
RM RM RM
ASSETS
Non-current assets
Long term investment 20000
Land 50000
Building 127500
Accumulated depreciation - building (41750) 85750
Office equipment 60100
Accumulated depreciation – office equipment (10635) 49465
Total Non-current Assets 205215

Current assets
Cash 13350
Bank 23367
Account receivable 31700
- bad debt (2000) 29700
Inventory 15000
Office supplies 1150
Prepaid insurance 3500
Total Current Assets 86067

Total Assets 291282

Owner’s Equity
Capital 158450
Net profit 94032
- Drawing (14000)
Total owner’s equity 238482

Non-current liabilities
Long term loan 25000

Current liabilities
Account payable 23500
Interest payable 1500
Unearned rent revenue 1000
Accrued salaries and wages 1800
27800
Total Liabilities 52800

Total Liabilities and Owner’s Equity 291282