BKAL1013 Business Accounting

First Semester 2022/2023 (A221)

Group Name/No.: 1

Project: Group Project Business Accounting

Prepared For:

Associate Prof. Dr. Ku Maisurah Binti Ku Bahador

Prepared By:
NoorMona Tasya Binti Zakaria
291440
Chang Kae Wen
293928
Nur Auni Najlaa Binti Mohd Nazari
293936
Sahira Rusydina Binti Mohd Shukri
294882
Nurhanies Aqilah Binti Rosnei
295193
Nurul Najwa Binti Kasim
295331
Abdul Wafi Bin Abdul Rahman
295570

Date of Submission: 10/01/2023 (Monday)

PART A

Question 1

Journal Entries

Account Debit (RM) Credit (RM)

Drawings 27,500
Cash 27,500

Cash 10,000
Gain on van disposal 10,000

Cash 150,000
Capital 150,000

Land 180,000
Cash 180,000

Cash receipts 315,000

Account receivable 315,000
Account payable 255,000
Disbursement 255,000

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 Nat Enterprise
Adjusted Trial Balance
30 November 2022

Accounts Debit (RM) Credit (RM)

Cash 519,500

Account Receivable 180,875

Merchandise Inventory 404,813

Office Supplies 4,000

Sale Supplies 6,875

Pre-paid Insurance 72,975

Long-term Investment 193978

Office Equipment 288,750

Accum. Depre. - Office Equip. 173,250

Delivery Van 368,875

Accum. Depre. - Delivery Van 227,325

Accounts Payable 329,275

Salaries Payable 25,600

Interest Payable 28,125

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Unearned Revenue 42,009

Notes Payable 420,090

Capital, Natasha Rizal 834,000

Withdrawal, Natasha Rizal 55,000

Sales 1,128,928

Sales Returns and Allowances 3,525

Sales Discounts 7,928

Advertising Expense 30,800

Depre. Expense - Office Equip. 57,750

Depre. Expense - Delivery Van 37,888

Del. Van Repairs & Maintenance 8,575

Cost of Merchandise Sold 560,940

Sale Salaries Expense 85,670

Sale Supplies Expense 8,560

Insurance Expense 15,600

Office Salaries Expense 25,550

Office Supplies Expense 5,680

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Rental Expense 30,500

Utility Expense 25,870

Interest Expense 28,125

Gain on Van disposal 10,000

Land 180,000

3,208,602 3,208,602

4
 Nat Enterprise
Statement of Profit or Loss and Other Comprehensive Income for The Months Ended
November 30, 2022

RM RM
Sales 1, 128,928
(-) Sales Discount (3,525)
(-) Sales Returns and Allowances (7,928) 1, 117, 475

(-) Cost of Goods Sold

Cost of Merchandise Sold (560,940)
Gross Profit 556, 535

Expenses
Advertising Expense 30,800
Depreciation of Expense - Office Equipments 57,750
Depreciatiton of Expense - Delivery Van 37,888
Del. Van Repairs & Maintenance 8,575
Sale Salaries Expense 85,670
Sale Supplies Expense 8,560
Insurance Expense 15,600
Office Salaries Expense 25,550
Office Supplies Expense 5,680
Rental Expense 30,500
Utility Expense 25,870
Interest Expense 28,125
Total Expenses 360,568
Net Income 195, 967

5
 Nat Enterprise
Statement of Changes in Owner's Equity For The Months Ended November 30, 2022

RM
Share Capital At Beginning of The Year 684,000
Add : Net income 185,092
869,092
Less : Withdrawal (27,500)
Share Capital At The End of The Year 841,592

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 Nat Enterprise
Statement of Financial Position as at 31 December 2022

RM RM
Non-current Asset
Office Equipment 288,750
(-) Accumulated Depreciation (173,250) 115,500

Delivery Van 378,875

(-) Accumulated Depreciation (227,325) 151,550

Long Term Investment 193,978

Current Asset
Cash 567,000
Office Supplies 4,000
Sales Supplies 6,875
Accounts Receivable 180,875
Merchandise Inventory 404,813
Pre-paid Insurance 72,975 1,236,538

Total Asset 1,697,566

Current Liability
Accounts Payable 329,275
Salaries Payable 25,600
Interest Payable 28,125
Unearned Revenue 42,009
Notes Payable 420,090 845,099

Equity
Share Capital 684,000
(-) Withdrawal (27,500)
Net income 195,967 852,467

Total Liabilities and Equity 1,697,566

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 Nat Enterprise
Cash Account

Balance of Cash At 1 January 2022 554,500

Add:
Cash Received on Disposal of Asset 10,000
Cash Investment 150,000
Cash Sales 315,000 475,000

Cash Withdrawal (27,500)

Purchase of Asset (180,000)
Purchases (255,000) (462,500)
Balance Cash at 31 December 2022 567,000

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PART B

No. Account Amount Net Assets Liabilities Equity

Affected Income/Loss

a) Depreciation of Understated Overstated Overstated - Overstated

office equipment
and delivery van
for the sum of
RM35,000.

b) Unpaid salaries Understated Overstated - Understated Overstated

of RM20,000.

c) The available Understated Overstated Overstated - Overstated

balance of office
supplies in hand
was RM300.

d) A total of Understated Understated - Overstated Understated

RM7,800 of the
unearned
revenue was
realized.

e) A sum of Understated Overstated Overstated - Overstated

RM40,500
insurance has
already expired.

f) The billing Understated Understated Understated - Understated

department
forgot to send

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 invoices to a
customer for a
total sum of
RM24,400.

g) Interest revenue Understated Overstated Overstated Overstated Overstated

of RM15,800
was not
recorded.

h) - - - Overstated -
Suppliers’
invoices
amounting to
RM135,000
were misplaced
and only
recently
discovered.

10
PART C

1. CREDIT TERM

Sales

More individuals will be able to purchase from Nat Enterprise if there are more payment
methods. In addition, a lot of buyers favour using credit. By granting loans. Natasha Rizal
expanded the customer base for Nat Enterprise. Making it simpler for customers to
purchase from them increases the likelihood that they will do so again.

Credit Management

Decreasing the number of late payments by identifying them sooner and avoiding bad
debts, thereby lowering the likelihood that a default may negatively affect your company.

Account Receivable

The vital component of a company's financial flow is accounts receivable. It assists Nat
Enterprise in managing their cash flow by letting them know which customers owe them
money and how much. This makes it possible for The Nat Enterprise to determine whether
the cash account truly reflects their current financial situation.

Inventory Management

Nat Enterprise is able to sell more goods to its customers over a longer period of time
because of having access to financing. In the absence of finance, Natasha Rizal would have
to rely on their own income or personal assets to make the purchases necessary to maintain
their business.

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2. SHIPPING TERM

Sales

Nat Enterprise should choose a "Free on Board" shipping point based on the situation,
because the buyer will pay the freight cost from the shipping point to the final destination.
This way, will increase revenue of the company because the seller does not have to pay for
shipping and thus reduces expenses as well.

Credit Management

Nat Enterprise can provide a discount for the early payment. This incentive can make the
business get paid sooner, which accelerates cash flow. It also reduces the risk of non-
payment or late payment.

Account Receivable

Nat Enterprise can improve their account receivable by invoice accurately on time and
often which can encourage the buyers to pay as soon as possible.

Inventory Management

Nat Enterprise can practice drop shopping by delivering directly to the customer by the
manufacturer rather than by the retailer, with no cash and carry option.

12