FAKULTI EKONOMI DAN PENGURUSAN

EPPD1033 PRINSIP PERAKAUNAN

TUTORIAL 6
Topic: Merchandising

QUESTION 1

As of 1 September, the Efficient Supplier (ES) had an inventory of 30 sets of stationery at a

cost of RM18 per set. Efficient Supplier uses a continuous inventory system. During the
September month the following transactions were involved:

Sept.
6 Buy 80 sets of stationery at RM20 per set from Mega Sdn Bhd, n/30 requirement.
Dr. Inventory 1600 Cr. Trade Payable 1600

Dr. COGS 1600 Cr. Trade Payable 1600

9 Pay transport costs RM80 for purchase on Sept 6.

10 Refund 3 sets of stationery to Mega Sdn Bhd for a credit of RM63 (including
transportation costs) as Mega Sdn Bhd did not meet the required specifications.
Dr. Trade Payable 63 Cr Inventory 63

Dr. Trade Payable 63 Cr. COGS Return 63

12 Sales 26 sets of stationery (cost RM21 including transport cost) at RM31 per set to
Excellent Bookstore, n/30 requirement.

14 Give RM31 credit to the Excellent Bookstore for the return of a set of stationery that was
not included in the reservation.
20 Sales 30 sets of stationery (cost RM21) at RM31 per set to Pintar Enterprise on credit.

Required:
Prepare journal entries for the deal throughout September.

1
 QUESTION 2
The following are Business Sincere transactions.

1. On Dec 3, sells RM570,000 of goods to Cerdik Enterprise, a requirement of 1/10,

n/30, FOB Destination. Pay RM400 for transportation charges. The cost of the
merchandise is RM350,000.

2. On Dec 8, Cerdik Enterprise was given a DISCOUNT of RM20,000 on goods

purchased on Dec 3.

3. On Dec 13, Business Sincere received the balance of debt from Cerdik Enterprise.

Required:
1. Prepare journal entries to record transactions in Business Sincere books using a
continuous inventory system.

2. Suppose Business Sincere receives the balance of debt from Cerdik Enterprise on 2
January of the following year, not December 13th. Prepare a journal note to record
receipts of payments on January 2.

QUESTION 3
The following transactions have been involved by the People's Retail Business during the
month of September 2010:

Sept. 1 Purchased RM2,000 worth of merchandise on credit from Dolmat Company

on credit terms 2/10, n/30. The transportation cost is RM100. The transport
condition is FOB Point Of Capping.

2 Returning damaged supplies to the Dolmat Company worth RM150 for

purchase on September 1.

5 Selling groceries to customers for RM800 in cash. The cost of goods sold is
RM420.

6 Giving a total of RM70 discount to customers due to minor damage to

goods sold on 5 September. The cost of this damaged item is RM20.

10 Settled balances owed to Dolmat Company for the transaction on

September 1.

21 Selling RM1,500 worth of groceries on credit to En. Budiman, on credit

terms, 1/10, n/30. The cost of these goods is RM700.

2
 30 Received the balance owed from En. Budiman for his purchase on
September 21.

Required:

Journal the above transactions into the general journal assuming the company uses;
1. Inventory system continues.
2. Periodic inventory system.

QUESTION 4

The following account balances for Syarikat Permata as of 31 October 2017, at the end of the
financial year. The accounts all have normal balances.

RM

Sales 298,000
Sales discounts 12,000
Cost of goods sold 150,000
Transportation. 200
Purchase discounts 300
Sales salary expenses 4,000
Administrative salary expenses 3,000
Rental expenses 5,000
Utility expenses 2,000

The data for adjustment are as follows:

1. The inventory account showed a balance of RM42,500 however physical calculations

of the inventory showed an actual balance of RM42,400.

2. The supplies used are worth RM3,000.

3. Depreciation of equipment for the accounting period is RM8,000.

4. Interest of RM1,000 is accrued on the unpaid notes.

3
5. An October salary of RM3,000 will only be paid at the beginning of November. It is
equally divided between the salaries of sales personnel and the salaries of
administrative staff.

6. Rental payments received from customers for September, October and November
were credited to the Uneasy Rental account on September 1, 2017. The monthly rent
is RM4,500.

Required:

1. Prepare an adjustment journal note on October 31, 2017.

2. Prepare a tiered Income Statement for the year ended 31 October 2017.