INTRODUCTION TO FINANCIAL ACCOUNTING ACC117

CLASS:

J4BA1171E

PREPARED FOR:

MISS RAHAYU IZWANI BORHANUDDIN

PREPAID BY:

NO. NAME NO. MATRIKS

1 SITI NAJIHA BINTI IZAN LAILY 2021211418

2 HANA HUMAIRA BINTI MOHAMAD SAZLI 2021610812

3 NUR ALYAA BINTI ABDUL MALEK 2021828384

4 NUR BATRISYA BINTI NORAZLI 2021206822

1
 TABLE OF CONTENT

Cover Page…………………………………………………………………………………1

Table of content……………………………………………………………………………2

Introduction………………………………………………………………………………...3

Business background……………………………………………………………………….4

Business transactions……………………………………………………………………...5-6

Journals……………………………………………………………………………………7-8

Ledgers……………………………………………………………………………………9-13

Trial Balance……………………………………………………………………………….14

Conclusion…………………………………………………………………………………15

2
 INTRODUCTION

The name of business is HIJABSTA. The owner chooses this name because she
decides to combine the first letter of nickname worker and owner name. The owner’s nickname
she uses is Jiha and the worker is Hana, Alyaa and Batrisya. STA, it combines it with our letter
because its stand for “Standing Committee” that can make our company name look stronger.
The meaning is our company have a one team that still manage to work no matter how difficult
the challenge and obstacles.

After that, the reason the owner chooses the company logo. The logo has the rose
flower because the rose meaning that if you want to show our partner or friends that you care
so much about them. That makes the owner and the workers want to care so much of our
customer that buy out product. Meanwhile, the owner puts the tagline is your favourite fashion
style. So, that the product can make it look quality product and comfortable to wear. Secondly,
the full name of the owner of this business is Siti Najiha Binti Izan Laily. She is the one who
manage the business and also a very responsible owner. She is assisted by three workers in this
business.
The location that the business is located at 30, Jalan Padi Emas 1/4, Bandar Baru
Uda, 81200 Johor Bahru, Johor. First, this business chooses that place is because the location
has strategic land. Furthermore, it has clinic, shopping mall, mosque and other place. The
location is also famous has many boutiques and this business can make the shop competitive
with other shoppers. The business also can attract many customers to come. Besides that, type
of the business is sole proprietorship.

For your information, the business activities are selling the two products include
attires such as blouse and sweatshirts. It comes with various designs, colors and sizes ranging
from XS to plus size. The business capital contribution personal saving RM30,000 and personal
loan from Maybank Berhad RM50,000. The financial year ends will be on 31 May 2022. The
transaction this year for the assignment on the first month commence from 1 June 2021 to 30
June 2021.

For a start, the business has three employees. The full name of the worker is Hana
Humaira, Nur Alyaa and Nur Batrisya. As the business grows, it will increase the number
accordingly. All these three staff are the founders who contribute ideas, experience, financial
support & encouragement not to mention worked really hard to develop HIJABISTA.

3
 BUSINESS BACKGROUND

Name of business HIJABISTA

Name of the owner Siti Najiha Binti Izan Laily

Address 30, Jalan Padi Emas 1/4, Bandar Baru Uda, 81200 Johor Bahru,
Johor.

Type of business Sole Proprietorship

Business activities Two products: selling blouse & sweatshirt

Capital Contribution Personal saving RM30,000 and personal loan from Maybank
Berhad RM50,000

Financial Year End 31 May 2022

Transaction of the
first month 1 June 2021- 30 June 2021

Number of workers 3

4
 BUSINESS TRANSACTIONS

The following are the HIJABISTA business transaction in 1 June 2021- 30 June 2021:

Date Transactions

June 1 The owner started the business with cash amounted RM 30,000.

2 Borrow a personal loan from Maybank amount RM 50,000 in cheque.

4 Purchased goods worth RM4,300 on credit from Golden Cloth.

5 Sold goods to Gambit Clothing worth RM 3,000 on credit.

6 Purchased computer by cash RM 5,000 for office use.

7 Bought used motor van into the business worth RM 40,000 on cash from Gear
Enterprise
8 The owner took RM 1,400 goods and RM 500 cash for personal use.

9 Gambit Clothing returned goods worth RM 850

11 The business purchased goods on credit RM 5,000 from Elite Cotton Prints.

12 Returned faulty goods to Golden Cloth costing RM1,000

13 Sold goods worth RM 4,500 on credit to Mika

14 Return damage goods worth RM1,500 to Elite Cotton Prints.

16 Purchased goods worth RM6,000 on credit from Nana Fabric

17 Purchased office equipment on credit from Jojo Furniture to RM 15,000

19 Mika returns damage goods worth RM 700

20 Credit sales of RM 5,000 to Kaila Shop

23 Received rental by cheque worth RM 2,500

24 Purchased goods for RM 2,500 by cash from Fashionista

5
26 The owner sold goods to Miss Dhiya worth RM 1,300 by cash

28 Paid the electricity bills RM 300 by cheque

29 Received commission from supplier amounting to RM600 by cheque

30 Paid salaries amounted to RM4,500 by cheque

6
 JOURNALS

Sales Journal

Date Particulars Amount (RM)

June 5 Account Receivable Gambit Clothing 3,000
13 Account Receivable Mika 4,500
20 Account Receivable Kaila Shop 5,000
30 Transfer to Sales Account 12,500

Purchases Journal

Date Particulars Amount (RM)

June 4 Account Payable Golden Cloth 4,300
11 Account Payable Elite Cotton Prints 5,000
16 Account Payable Nana Fabric 6,000
30 Transfer to Purchase Account 15,300

Sales Return Journal

Date Particulars Amount (RM)

June 9 Account Receivable Gambit Clothing 850
19 Account Receivable Mika 700
30 Transfer to Sales Return Account 1,550

Purchases Return Journal

Date Particulars Amount (RM)

June 12 Account Payable Golden Cloth 1,000
14 Account Payable Elite Cotton Prints 1,500
30 Transfer to Purchases Return Account 2,500

7
 Cash Receipts Journal

Date Particulars Discount Cash (RM) Bank (RM)

Allowed
June 23 Rental Received 2,500
26 Miss Dhiya 1,300
29 Commission Received 600
30 Transfer to Cash and Bank Accounts 1,300 3,100

Cash Payment Journal

Date Particulars Discount Cash (RM) Bank (RM)

Received
June 24 Fashionista 2,500
28 Electricity bills 300
30 Salaries Expenses 4,500
30 Transfer to Cash and Bank Accounts 2,500 4,800

General Journal

Date Particulars Debit (RM) Credit (RM)

June 1 Cash 30,000
Capital 30,000
(Started the business with Cash)
2 Bank 50,000
Loan from Maybank 50,000
(Borrow a personal loan from Maybank)
6 Computer 5,000
Cash 5,000
(Purchased computer by cash)
7 Motor Van 40,000
Cash 40,000
(Bought used motor van on cash from Gear Enterprise)
8 Drawing 1,900
Purchase 1,400
Cash 500
(The owner took goods and cash for personal use.)
17 Office Equipment 15,000
Bank 15,000
(Purchased office equipment on credit from Jojo Furniture)

8
 LEDGERS

Sales Ledgers

Account Receivable Gambit Clothing

2021 RM RM
June 5 Sales 3,000 June 9 Sales Return 850
30 Balance c/d 2,150
3,000 3,000
July 1 Balance b/d 2,150

Account Receivable Mika

2021 RM RM
June 13 Sales 4,500 June 19 Sales Return 700
30 Balance c/d 3,800
4,500 4,500
July 1 Balance b/d 3,800

Account Receivable Kaila Shop

2021 RM RM
June 20 Sales 5,000 June 30 Balance c/d 5,000

5,000 5,000
July 1 Balance b/d 5,000

Purchase Ledgers

Account Payable Golden Cloth

2021 RM RM
June 12 Purchase Return 1,000 June 4 Purchase 4,300
30 Balance c/d 3,300
4,300 4,300
July 1 Balance b/d 3,300

9
 Account Payable Elite Prints
2021 RM RM
June 14 Purchase Return 1,500 June 11 Purchase 5,000
30 Balance c/d 3,500
5,000 5,000
July 1 Balance b/d 3,500

Account Payable Nana Fabric

2021 RM RM
June 30 Balance c/d 6,000 June 16 Purchase 6,000

6,000 6,000
July 1 Balance b/d 6,000

General Ledgers

Capital
2021 RM RM
June 30 Balance c/d 30,000 June 1 Cash 30,000

30,000 30,000
July 1 Balance b/d 30,000

Loan from Maybank

2021 RM RM
June 30 Balance c/d 50,000 June 2 Bank 50,000

50,000 50,000
July 1 Balance b/d 50,000

Computer
2021 RM RM
June 6 Cash 5,000 June 30 Balance c/d 5,000

5,000 5,000
July 1 Balance b/d 5,000

10
 Drawing
2021 RM RM
June 8 Purchase 1,400 June 30 Balance c/d 1,900
8 Cash 500
1,900 1,900
July 1 Balance b/d 1,900

Motor Van
2021 RM RM
June 7 Cash 40,000 June 30 Balance c/d 40,000

40,000 40,000
July 1 Balance b/d 40,000

Office equipment
2021 RM RM
June 17 Bank 15,000 June 30 Balance c/d 15,000

15,000 15,000
July 1 Balance b/d 15,000

Cash
2021 RM RM
June 1 Capital 30,000 June 6 Computer 5,000
30 Total Receipts 1,300 7 Motor Van 40,000
30 Balance c/d 16,700 8 Drawing 500
30 Total Payment 2,500

48,000 48,000
July 1 Balance b/d 16,700

11
 Bank
2021 RM RM
June 2 Loan from Maybank 50,000 June 17 Office Equipment 15,000
30 Total Receipts 3,100 30 Total Payment 4,800
30 Balance c/d 33,300
53,100 53,100
July 1 Balance b/d 33,300

Sales
2021 RM RM
June 30 Balance c/d 12,800 June 26 Miss Dhiya 1,300
30 Total Sales 12,500

13,800 13,800
July 1 Balance b/d 13,800

Purchases
2021 RM RM
June 24 Fashionista 2,500 June 8 Drawing 1,400
30 Total Purchases 15,300 30 Balance c/d 16,400
17,800 17,800
July 1 Balance b/d 16,400

Sales Return
2021 RM RM
June 30 Total Sales Return 1,550 June 30 Balance c/d 1,550

1,550 1,550
July 1 Balance b/d 1,550

Purchase Return
2021 RM RM
June 30 Balance c/d 2,500 June 30 Total Purchase Return 2,500

2,500 2,500
July 1 Balance b/d 2,500

12
 Rental Received
2021 RM RM
June 30 Balance c/d 2,500 June 23 Bank 2,500

2,500 2,500
July 1 Balance b/d 2,500

Commission Received
2021 RM RM
June 30 Balance c/d 600 June 29 Bank 600

600 600
July 1 Balance b/d 600

Electricity Bills
2021 RM RM
June 28 Bank 300 June 30 Balance c/d 300

300 300
July 1 Balance b/d 300

Salaries Expenses
2021 RM RM
June 30 Bank 4,500 June 30 Balance c/d 4,500

4,500 4,500
July 1 Balance b/d 4,500

13
 HIJABISTA
Trial Balance for month ended 30 June 2021

Particulars (List of Account) Debit (RM) Credit (RM)

Account Receivable Gambit Clothing 2,150

Account Receivable Mika 3,800

Account Receivable Kaila Shop 5,000

Account Payable Golden Cloth 3,300

Account Payable Elite Prints 3,500

Account Payable Nana Fabric 6,000

Capital 30,000

Loan from Maybank 50,000

Computer 5,000

Drawing 1,900

Motor Van 40,000

Office Equipment 15,000

Cash 16,700

Bank 33,300

Sales 13, 800

Purchases 16,400

Sales Return 1,550

Purchases Return 2,500

Rental Received 2,500

Commission Received 600

Electricity Bills 300

Salaries Expenses 4,500

128,900 128,900

14
 CONCLUSION

In business, the accounting proses start with business transactions that are taken from
few of source’s document, depends on type of the transaction. Then, they are recorded in books
of prime entry as journals which is sales journal, purchase journal, return inward journal, return
outward journal, cash receipt journal, cash payment journal and general journal. Accounting
transactions contain of five categories of account, which is assets, owner’s equity, liability,
revenues and expenses.

Assets = Capital + Liabilities is the basic form of double entry bookkeeping system.
The accounting equation is always maintaining the same of the number of transactions recorded
in the business. Every transaction will have double effects on the accounting equation which is
increase and decrease.

Next, the total will be transferred to the appropriate accounts in ledgers. In financial
accounting, journal is a record of all transactions in business that happen within a specific time.
The business transactions are recorded in a journal each one with short explanation.

Ledger is a group of similar accounts which combined balance in a specific general

ledger account. The combined balance of each account in this ledger equals the balance of
accounts receivable in the general ledger.

Lastly, trial balance is prepared at the end of the month. The purpose of trial balance is
to confirm the entries or transactions have been recorded correctly in the books of accounts. If
there is an error, adjustment need to be done. If all the entries are mathematically correct, the
total of all debit balances that in the trial balance must equal to the sum of all credit balances.

15