TUTORIAL : TOPIC 5 – BOOKS OF ORIGINAL ENTRY

Exercise A

Record the below transaction in the book of original entry for Asia Trading.

2016

July 1 Started business with RM25,000 in the bank.

2 Bought office furniture by cheque for RM1,500.

3 Bought machinery for RM7,500 on credit from Planners Ltd.

5 Bought a motor van, paying by cheque RM16,000.

8 Sold some of the office furniture – not suitable for the firm – for RM600 on
credit to Li Sam.

15 Paid the amount owing to Planners Ltd. of RM750 by cheque.

23 Received the amount due from Li Sam RM600 in cash.

24 Bought more machinery by cheque for RM2,800.

25 Owner takes money out of the business bank account RM1,000 for his own use

25 Sold goods on credit to Stephen RM2,300

26 Paid salary RM1,500

27 Buy goods on credit from Unique Machines RM3,000

28 Debtors Shephen paid the business for the amount owing (by cheque)

29 Returned some of the stock, valued at RM200 to Unique Machines

31 Sold goods for cash RM580

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Exercise B

Record the below transaction in the book of original entry for Harmony Enterprise:

2017

Aug. 1 Opened business with RM20,000 in the bank.

3 Bought office equipment for RM7,000 on credit from Viva Machinery Limited.

6 Bought a motor van paying by cheque for RM13,000.

8 Borrowed the money from H. Chen – he gave us the money by cheque.

11 Tsang put further capital into the firm in the form of RM5,000 cash.

12 Transfer RM350 from the bank account to the bank account.

15 Returned some of the office equipment costing RM2,000 – it was faulty – to

Viva Machinery Limited

17 Bought more office equipment, paying RM500 cash.

19 Sold the motor van, because it was unsuitable, to L. Jim for RM3000 cash.

21 Received a RM4,000 loan in cash from T. Hung.

22 Received RM1,100 payment from tenant for this month rental.

23 Bought a suitable motor van for RM3600 on credit from Ideas & Promotion
Ltd.

26 Issued cheque RM580 for utility bills

28 Paid RM2000 by cheque to Ideas & Promotion Ltd.

30 Paid RM2,000 by cheque for insurance.

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Exercise C

Record the below transaction in the book of original entry of Ali Baba.

2003

Mar. 1 Started business with RM10,000 cash.

2 Received a loan of RM5,000 from M. Chow by cheque, a bank account being

opened and the cheque paid into it.

3 Bought machinery for RM6,000 cash.

5 Bought display equipment on credit from Betterview Machines for RM5,500.

7 Took RM3000 out of the bank and put it into the cash till.

8 Repaid part of Chow’s loan by cheque for RM2,000.

11 Paid amount owing to Betterview Machines of RM5,500 by cheque.

12 Repaid part of Chow’s loan by RM1,000 cash.

18 Bought additional machinery, this time on credit from D. Sun for RM2,500.

19 Received commission RM670.

20 Purchase goods from Avatar Sdn.Bhd RM1,500 and paid by cheque.

22 Sold a goods to Lin Dan on credit amounted RM1,700.

25 Customer buy goods on cash RM800.

26 Paid commission to Ahmad RM200.

31 Paid office rental RM1,200.

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Exercise D

Metro Enterprise, owned by En. Ali has started the business on 1 January 2014. It is a
bookstore business located at Semenyih, Selangor. On 1 January 2016 the transactions of
the business are as follows: Record the transaction in the book of original entry.

Jan 1 Bought stationery RM250 by cash.

3 Made cash sales of RM1,750 to En. Abu.
5 Received a cheque of RM5,200 from Pustaka Ilmu for the full settlement of their
debts of RM5,400.
7 Issued a cheque to MPH Bookstore of RM2,515 to settle the credit purchase
made and received RM85 as discount.
8 Made cash sales of RM2,200.
10 Melisa Stationery paid RM3,250 by cheque.
11 Bought a photocopier of RM12,500 by cheque from Elite Equipment Sdn Bhd.
12 En. Ali took out cash amounted RM450 for his personal use.
14 Paid utilities using cash of RM523.
15 Made cash sales to En. Chong amounting to RM720.
18 Paid RM4,800 by cheque to Smart Bookstore.
20 Paid RM180 cash to Ray for maintenance expenses.
21 Made sales to Rania Sdn Bhd and received RM380 cash.
23 Paid RM1,800 to Winstar Wholesaler by cheque.
25 Made RM3,000 sales to Dato’ Aqif.
27 Paid salaries by cheque amounted RM5,000.
29 Paid rent by cheque of RM3,200.
30 Banked in cash balance into bank after retaining RM500 in the petty cash.