Class Exercises – Accounting for Merchandising Business

Question1
Mia Batik Enterprise is using a periodic inventory system in recording its
inventory. The following transactions occurred during the month of January 2020:

Date Transactions
2020
January 1 The owner brought additional cash of RM10,000 and immediately
bank in the amount into the business bank account.
2 Paid stationery RM150 by cheque.
4 Received an invoice for goods purchased worth RM1,000 from
Aina Enterprise. Credit term 2/10, n30.
8 The owner took RM50 worth of goods for personal use.
9 Sold goods on credit to Tasha worth of RM800 with credit term
2/15, n30.
12 Settled the amount due to Aina Enterprise by cheque.
16 Received a cheque for sales worth of RM900.
18 Issued a credit note to Tasha for goods returned amounting to
RM200.
22 Tasha settled her account by cash.

Required:
Journalise the above transactions in the appropriate special journals.

Date Particulars Debit Credit

(RM) (RM)
Jan 1 Dr Bank 10,000
Cr Capital 10,000
2 Dr Stationery expenses 150
Cr Bank 150
4 Dr Purchases 1,000
Cr A/P – Aina Enterprise 1,000
8 Dr Drawings 50
Cr Purchases 50
9 Dr A/R - Tasha 800
Cr Sales 800
12 Dr A/P – Aina Enterprise 1,000
Cr Bank 980
Cr Purchase discount (2%x1000) 20
16 Dr Bank 900
Cr Sales 900
18 Dr Sales return & allowances 200
 Cr A/R - Tasha 200
22 Dr Bank 588
Sales Discount (2%x(800-200) 12
Cr A/R - Tasha 600

Question 2
Given below are transactions for the month of April 2020 for Muq Art and
Design, a business selling special design home decoration. The business uses
the perpetual system to record the inventory.

Date Transactions
Apr 1 The owner, Mr Mooqie, deposited RM50,000 cash into the business bank
account to start off the business.
2 Purchased goods worth RM4,500 and settled by cheque.
4 Cash sales RM1,000. The cost is RM300
5 Received an invoice worth RM6,000 from Rico Enterprise with credit
terms of 5/10, n30.
6 Issued an invoice to Aleef worth RM4,500. Credit terms of 5/10, n30. The
cost of the goods is RM1,500
7 Issued a credit note to Aleef amounting to RM500

8 Issued a debit note to Rico Enterprise for goods returned worth RM400.

9 Received settlement from Aleef by cash.

10 Home decoration worth RM1,500 was taken by Mr Mooqie as a wedding gift

to his brother.
11 Settled amount outstanding by cheque to Rico Enterprise.

Required:

Journalise the above transactions into the appropriate special journals. Narration is
not required.

General Journal

Date Particulars Debit Credit

(RM) (RM)
Apr 1 Dr Bank 50,000
Cr Capital 50,000
2 Dr Inventory 4,500
Cr Bank 4,500
4 Dr Cash 1,000
 Cr Sales 1,000
Dr COGS 300
Cr Inventory 300
5 Dr Inventory 6,000
Cr A/P - Rico Enterprise 6,000
6 Dr A/R - Aleef 4,500
Cr Sales 4,500
Dr COGS 1,500
Cr Inventory 1,500
7 Dr Sales return & allowance 500
Cr A/R - Aleef 500
Dr Inventory 167
Cr COGS 167
8 Dr A/P - Rico Enterprise 400
Cr Inventory 400
9. Dr Bank/ cash 3,800
Sales discount 5%x(4,500-500) 200
Cr A/R – Aleef 4,000
10 Dr Drawings 1,500
Cr Inventory 1,500
11 Dr A/P – Rico Enterprise 5,600
Cr Bank 5,320
Purchase discount 5%x(6,000-400) 280

Question 3
On 1 June 2020, Mr. Arman started a business, Armani Enterprise, which
produces and sells shawls. He brought into the business RM5,000 furniture and
RM35,000 cash.

During the month of June 2020, these were the Armani Enterprise transactions:

June Transactions
3 Opened a business bank account with Hong Ling Bank and
transferred RM25,000 cash into the bank.

7 Received invoices from:

Prima Holdings RM5,000 (before trade discount of 3%)
Marvellous Sdn Bhd RM9,000 (before trade discount of 3%)
 9 Received a credit note from Marvellous Sdn Bhd for goods returned
amounting to RM150

13 Issued an invoice to Mr. Jamal for goods sold amounting to RM2,000.

The credit term is 5/10, net 30.

17 Issued a cheque for RM2,000 to Prima Holdings as partial settlement.

Armani Enterprise uses periodic inventory system in recording its inventories.

Required:

Record the above transactions into the appropriate ledger accounts (three columns
ledger).

Date Particulars Debit Credit

(RM) (RM)
Jun 3 Dr Bank 25,000
Cr Capital 25,000
7 Dr Purchases 14,000
Cr A/P - Prima Holdings 5,000
A/P - Marvellous Sdn Bhd 9,000
9 Dr A/P - Marvellous Sdn Bhd 150
Cr Purchase return & allowances 150
13 Dr A/R – Mr Jamal 2,000
Cr Sales 2,000
17 Dr A/P - Prima Holdings 2,000
Cr Bank 2,000

(Prepare the T-accounts by yourself)