AA015 Chapter 3 Lecture_Nor Ismah Isa

Question 1

Parit 18 Enterprise Business Transactions

March Transactions
2016
Started a wholesale business in traditional biscuit with RM100,000 as
1
initial capital into the bank.
Bought a vehicle worth RM50,000 on credit by signing Notes Payable,
2
5%, for a period of 5 years from Toyota Capital.
Bought biscuits RM30,000 from suppliers, Hani Enterprise and
3
payments are made by cheque No. 515.
Sold on credit 100 boxes of cookies worth RM16,800 to Jasni
4
Enterprise, invoice no. kz001. Terms 2/15, n / 30.
Sold on credit 50 boxes of biscuits worth RM10,200 to Dani
6
Enterprise, invoice no. kz002. Terms 2/15, n / 30
Bought biscuits on credit worth RM 52,600 from Doremi Enterprise,
10
terms 2/15, n / 30.
Sold on credit 200 boxes of biscuits worth RM33,200 to Rita
11
Enterprise, invoice no. kz003. Terms 2/15, n / 30
12 Jasni returned faulty goods worth RM800.
14 Received payments from Jasni Enterprise for the sale on 4 March by
cheque.
15 Received third quarter payments from Dani Enterprise for the sale on
6 March by cheque.
16 Received a credit memo from Doremi Enterprise for the return of
RM200 faulty biscuits.
21 Issued a cheque No. 516 to Doremi Enterprise, for the payment of
invoice dated on March 11.
22 Bought biscuits on credit worth RM41,625 from Wali Enterprise, terms
2/15, n / 30.
23 Paid Carriage Outward RM420 by cheque.
26 Received half payments from Rita Enterprise for the sale on 11 March
by cheque
29 Made cash sales of RM 134 680
31 Withdraw cash for personal used RM2,000
31 Issued Cheque no. 517, RM15,900 for the payments of employees’
salary.

Instructions :
1. Record the business transactions of Parit 18 Enterprise into the appropriate
journals.
2. Post to the appropriate subsidiary ledgers.
3. Post to the appropriate general ledgers
4. Prepare the trial balance on 31 March 2016.
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 AA015 Chapter 3 Lecture_Nor Ismah Isa
Question 2

Naim Hardware Store had completed the following merchandising transactions in

the month of May 2017. At the beginning of May, the ledger of Naim showed Cash
of RM5,000, Cash in Bank RM55,000 and Capital of RM60,000.

May 1 Purchased merchandise on account from Toi’s Wholesale Supply

RM4,300, terms 2/10, n/30.
2 Sold merchandise on account to Darine Solution RM 2,100, terms 2/10,
n/30.
5 Received a credit note from Toi’s Wholesale Supply for merchandise
returned RM 300.
9 Received collections in full from Darine Solution for May 2 sales by
cheque.
10 Paid Toi’s Wholesale Supply in full by cheque.
11 Purchased supplies for cash RM 400.
12 Purchased merchandise for cash RM 1,400.
15 Took some merchandise from store for personal used RM500.
17 Purchased merchandise from Cosmo Distributors RM 3,800, FOB
shipping point, terms 2/10, n/30.
19 Paid Carriage inward on May 17 purchase RM 130.
24 Sold merchandise for cash RM 3,200.
25 Purchased merchandise from Tuti Resources. RM 3,600, FOB
destination, terms 2/10, n/30.
27 Paid Cosmo Distributors partially, RM1,600 by cheque.
29 Sold merchandise to Yuyi Trading on account RM1,900, terms 2/10,
n/30.
31 Yuyi Trading returned defect goods, RM500.

Instructions :
1. Record the business transactions of Naim Hardware Store into the
appropriate journals.
2. Post to the appropriate subsidiary ledgers.
3. Post to the appropriate general ledgers
4. Prepare the trial balance on 31 May 2017.

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 AA015 Chapter 3 Lecture_Nor Ismah Isa
QUESTIONS 2
(1)
Sales Journal
Date Accounts Debited term Acc Receivable Dr
Sale Account Cr
May 2 Darine Solution 2/10, n/30 2,100
29 Yuyi trading 2/10, n/30 1,900
4,000

Purchases Journal
Date Accounts Credited term Purchases Account Dr
Acc Payable Cr
May 1 Toi’s Wholesale Supply 2/10, n/30 4,300
17 Cosmo Distributor 2/10, n/30 3,800
25 Tuti resources 2/10, n/30 3,600
11,700

Cash Receipts Journal

Date Accounts Credited Bank Dr Cash Dr Sales
Discount
Dr
May 9 Accounts Recievable : Darine Solution 2,058 42
24 Sales 3,200
31 2,058 3,200 42

Cash Payment Journal

Date Accounts Debited Bank Cr Cash Cr Purchase
Discount
Cr
May 10 Accounts Payable: Toi’s Wholesale Supply 3,920 80
11 Supplies 400
12 Purchases 1,400
19 Carriage inward 130
27 Accounts Payable: Cosmo Distributor 1,600
31 5,520 1,930 80

General Journal
Date Accounts title Debit Credit
May 5 Accounts Payable: Toi Wholesale Supply 300
Purchase Return and Allowance 300
(To record purchase return)
May 15 Drawing 500
Purchases 500
(To record good’s withdrawal)
May 31 Sale Return and Allowance 500
Accounts Receivable: Yuyi trading 500
(o record sales return)

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 AA015 Chapter 3 Lecture_Nor Ismah Isa
(2) Subsidiary ledgers:
Accounts Receivables;
Darine Solution
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 2 Sales 2,100
9 Bank 2058
9 Sales Discount 42 0

Yuyi trading
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 29 Sales 1,900
31 Sale Return and Allowance 500 1,400

Accounts Payables;
Toi’s Wholesale Supply
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 1 Purchases 4,300
5 Purchase Return and Allowance 300
10 Bank 3,920
10 Purchases Discount 80 0

Cosmo Distributor
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 17 Purchases 3,800
27 Bank 1,600 2,200

Tuti resources
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 25 Purchases 3,600 3,600

(2) General ledgers

Accounts Receivables
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 9 Bank 2058
31 Sale Return and Allowance 500
31 Sales Discount 42
31 Sales 4,000 1,400

Accounts Payables
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 5 Purchase Return and Allowance 300
10 Bank 3,920
27 Bank 1,600
31 Purchases Discount 80
31 Purchases 11,700 5,800

Sales Discount
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 31 Accounts Receivables 42 42

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 AA015 Chapter 3 Lecture_Nor Ismah Isa
Purchases Discount
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 31 Accounts Payables 80 80

Sales Return and Allowance

Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 31 Accounts Receivables 500 500

Purchases Return and Allowance

Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 31 Accounts Payables 300 300

Bank
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 1 Balance 55,000
31 Total receipts 2,058
31 Total payment 5,520 51,538

Cash
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 1 Balance 5,000
31 Total receipts 3,200
31 Total payment 1,930 6,270

Drawing
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 15 Purchases 500 500

Purchases
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 12 Cash 1,400
15 Drawing 500
31 Accounts Payables 11,700 12,600

Sales
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 24 Cash 3,200
31 Accounts Receivables 4,000 7,200

Supplies
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 11 Cash 400 400

Carriage inward
Date Account Description Debit (RM) Credit (RM) Balance(RM)
May 19 Cash 130 130

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 AA015 Chapter 3 Lecture_Nor Ismah Isa
Naim hardware store
Trial balance as on 31 May 2017

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 AA015 Chapter 3 Lecture_Nor Ismah Isa
RM RM
Capital 60,000
Cash 6,270
Bank 51,538
Accounts Receivables 1,400
Accounts Payables 5,800
Sales Discount 42
Purchases Discount 80
Sales Return and Allowance 500
Purchases Return and Allowance 300
Drawing 500
Purchases 12,600
Sales 7,200
Supplies 400
Carriage inward 130
73,380 73,380

Question 1:

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 AA015 Chapter 3 Lecture_Nor Ismah Isa
Paul’s Book Warehouse distributes hardcover books to retail stores and extends
credit terms of 2/15, n/30 to all of its customers. At the end of May 2017, Paul’s
balance sheet shows as follows:
RM RM
Accounts Receivable: Accounts Payable:
Aiden Book Store 5,300 Atkinson Publishers 6,800
Bank 88,500 Capital 164,600
Inventory 8,900 Accrued salaries expense 1,500
Cash 24,200
Furniture 46,000
172,900 172,900

During the month of June the following merchandising transactions occurred.

June Purchased 200 books on account from Logan Publishers for RM3,200,
1 credit terms 2/10, n/30.
2 Paid rent expense RM6,000 by cash and accrued salaries expense by
cheque.
3 Sold 240 books on account to Reading Rainbow for RM30 each, credit
terms 2/15, n/30.
6 Received RM320 credit for 20 books returned to Atkinson Publishers.
9 Paid Logan Publishers in full by cheque.
15 Received payment in full from Reading Rainbow by cheque.
17 Sold 180 books on account to Cheap Books for RM25 each, credit terms
2/15, n/30.
20 Purchased 250 books on account from Phantom Publishers for RM5,500
credit terms 2/10, n/30.
23 Sold a few books to Warwofle Book Store on cash, RM3,800.
24 Received half payment from Cheap Books by cheque.
26 Paid Phantom Publishers in full by cheque
27 Paid transportation cost for transaction dated 17 June by cash RM80
28 Sold 130 books on account to Willow Bookstore for RM20 each, credit
terms 2/15, n/30.
30 Granted Willow Bookstore RM120 credit for 6 books returned.

REQUIRED:

1. Record the business transactions of Paul’s Book Warehouse into the

appropriate journals. [12 marks]
2. Post to the appropriate subsidiary ledgers. [ 8 marks]
3. Prepare the trial balance on 30 June 2017.
Question 2:

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 AA015 Chapter 3 Lecture_Nor Ismah Isa
Fared created a retail store namely Fared Seri Resources that specializes in Gifts
and souvenirs merchandise. The following statements are business transactions
for March 2017:

Mar. 1 Fared invested RM50,000 cash in bank, RM10,000 cash and

merchandise with a total cost of RM10,000 into his new business,
1 Paid RM6,000 for 3 months’ rent.
2 Purchased office supplies for RM250 cash.
3 Purchased merchandise from DMA Sdn. bhd RM4,200 on credit terms
2/10, n/30.
8 Sold goods for RM10,500 on cash.
10 Purchased a 2-year insurance policy for RM4,800 by cheque.
11 Sold goods for RM8,000 to Hamzan Trading provided credit term 2/10,
n/30
12 Paid DMA Sdn. Bhd debt in full by cheque.
13 Hamzan Trading returned some defect goods amounted RM300.
18 Fared withdrew a souvenir amounted RM120 as a present to be given
to his cousin.
19 Received half payment from Hamzan Trading by cheque.
22 Purchased merchandise from Panther Sdn. bhd RM6,800 on credit
terms 2/10, n/30.
24 Returned some defect goods to Panther Sdn. Bhd, RM320.
28 Sold goods Tahir Enterprise on credit, RM1,800 provided credit term
2/10, n/30
30 Paid employees’ salaries RM5,000 by cheque.

REQUIRED:

1. Record the business transactions of Fared Seri Resources into the sales
journals, purchase journal, cash receipts journal, cash payment journal and
general journal.

2. Prepare a trial balance on 31 March 2017.

Question 1:

(1)
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 AA015 Chapter 3 Lecture_Nor Ismah Isa
Sales Journal
Date Accounts Debited term Acc Receivable Dr
Sale Account Cr
June 3 Reading Rainbow 2/15, n/30 √√7,200
17 Cheap Books 2/15, n/30 √√4,500
28 Willow Bookstore 2/15, n/30 √√2,600
30 14,300

Purchases Journal
Date Accounts Credited term Purchases Account Dr
Acc Payable Cr
June 1 Logan Publishers 2/10, n/30 √3,200
20 Phantom Publishers 2/10, n/30 √5,500
8,700

Cash Receipts Journal

Date Accounts Credited Bank Dr Cash Dr Sales
Discount
Dr
June 15 Accounts Receivable : Reading Rainbow √7,056 √144
23 Sales √3,800
24 Accounts Receivable : Cheap Books √2,250 √45
30 9,306 3,800 189

Cash Payment Journal

Date Accounts Debited Bank Cr Cash Cr Purchase
Discount
Cr
June 2 Rent expense √6,000
2 Accrued salaries expense √1,500
9 Accounts Payable: Logan Publishers √3,136 √64
26 Accounts Payable: Phantom Publishers √5,390 √110
27 Carriage outward √80
30 10,026 6,080 174

General Journal
Date Accounts title Debit Credit
June 6 Accounts Payable: Atkinson Publishers √320
Purchase Return and Allowance √320
(To record purchase return)
June 30 Sale Return and Allowance √120
Accounts Receivable: Willow Bookstore √120
(o record sales return)
(24 x 1/2 = 12 )

(2) Subsidiary ledgers:

Accounts Receivables;
Aiden Book store
Date Account Description Debit (RM) Credit (RM) Balance(RM)
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 AA015 Chapter 3 Lecture_Nor Ismah Isa
June 1 Balance √5,300

Reading Rainbow
Date Account Description Debit (RM) Credit (RM) Balance(RM)
June 3 Sales √7,200
15 Bank √7,056
15 Sales Discount √144 0

Cheap Books
Date Account Description Debit (RM) Credit (RM) Balance(RM)
June 17 Sales √4,500
15 Bank √2,250
15 Sales Discount √45 2,500

Willow Bookstore
Date Account Description Debit (RM) Credit (RM) Balance(RM)
June 28 Sales √2,600
30 Sale Return and Allowance √120 2,480

Accounts Payables;
Logan Publishers
Date Account Description Debit (RM) Credit (RM) Balance(RM)
June 1 Purchases √3,200
9 Bank √3,136
9 Purchases Discount √64 0

Atkinson Publishers
Date Account Description Debit (RM) Credit (RM) Balance(RM)
June 1 Balance 6,800
6 Purchase Return and Allowance √320 6,480

Phantom Publishers
Date Account Description Debit (RM) Credit (RM) Balance(RM)
June 20 Purchases √5,500
26 Bank √5,390
26 Purchases Discount √110 0
(16 x 1/2 = 8 )

Paul’s Book Warehouse

Trial balance as on 30 June 2017
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 AA015 Chapter 3 Lecture_Nor Ismah Isa
RM RM
Capital 164,600
Cash (24200+3,800-6,080) 21,920
Bank (88500+9,306-10,026) 87,780
Accounts Receivables (5300+14,300-7,056-2,250-189-120) 9,985
Accounts Payables (6800+8,700-3,136-5,390-174-320) 6,480
Sales Discount 189
Purchases Discount 174
Sales Return and Allowance 120
Purchases Return and Allowance 320
Inventory 8,900
furniture 46,000
Purchases 8,700
Sales (3,800+14,300) 18,100
Rent expense 6,000
Carriage outward 80
189,674 189,674

Question 2:
(1)
Sales Journal
Date Accounts Debited term Acc Receivable Dr
Sale Account Cr
Mar.11 Hamzan Trading 2/10, n/30 √8,000
28 Tahir Enterprise 2/15, n/30 √1,800
31 9,800

Purchases Journal
Date Accounts Credited term Purchases Account Dr
Acc Payable Cr
Mar. 3 DMA Sdn. Bhd 2/10, n/30 √4,200
22 Panther Sdn Bhd 2/10, n/30 √6,800
31 11,000

Cash Receipts Journal

Date Accounts Credited Bank Dr Cash Dr Sales
Discount
Dr
Mar. 1 Capital √50,000 √10,000
8 Sales √10,500
19 Accounts Receivable : Hamzan Trading √3,773 √77
31 53,773 20,500 45

Cash Payment Journal

Date Accounts Debited Bank Cr Cash Cr Purchase
Discount
Cr
Mar. 1 Prepaid Rent √6,000
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 AA015 Chapter 3 Lecture_Nor Ismah Isa
2 Office Supplies √250
10 Prepaid Insurance √4,800
12 Accounts Payable: DMA Sdn. Bhd √4,116 √84
30 Salaries Expense √5,000
31 13,916 6,250 84

General Journal
Date Accounts title Debit Credit
Mar. 1 Inventory √10,000
Capital √10,000
(To record inventory investment)
Mar. 13 Sale Return and Allowance √300
Accounts Receivable: Hamzan Trading √300
(To record sales return)
Mar. 18 Drawing √120
Purchases √120
(To record inventory drawing)
Mar. 24 Accounts Payable: Panther Sdn Bhd √320
Purchase Return and Allowance √320
(To record purchase return)
[23 x ½ = 11.5]

Fared Seri Resources

Trial balance as on 31 March 2017
RM RM
Capital (50000+10000+10000) √70,000
Cash (20,500-6,250) √14,250
Bank (53,773-13,916) √39,857
Accounts Receivables (9,800-3,773-77-300) √5,650
Accounts Payables (11,000-4,116-84-320) √6,480
Sales Discount √77
Purchases Discount √84
Sales Return and Allowance √300
Purchases Return and Allowance √320
Inventory √10,000
Prepaid Rent √6,000
Purchases (11000-120) √10,880
Drawing √120
Sales (10,500+9,800) √20,300
Prepaid Insurance √4,800
Salaries Expense √5,000
Office Supplies √250
97,184 97,184
[17 x ½ = 8.5 marks]

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