SCHOOL OF BUSINESS

Subject : Principles of Financial Accounting

Code : ACC1014
Tutorial 3 : Analysing and Recording Transactions

Readings before tutorial

Discussion Question 3
Discuss the importance of journalising in the accounting cycle.

Read up
Journals
Accounting Cycle
Double Entry
……………………………………………………………………………………………….

Exercise Question 4
Record the August transactions in the appropriate journals and explain how each
would be posted to accounts in the ledgers.

Read up
General Journal
Special Journals
Columnal / Analytical Journals

Posting

General Ledger
Subsidiary Ledgers

………………………………………………………………………………………………

Problem Question 4

a) Enter the transactions for November in the appropriate special journals.

b) Post the data from the journals to the general ledger and subsidiary ledgers.
c) Prepare a schedule of the accounts receivable subsidiary ledger and the
account payable subsidiary ledger as at 30th November
to prove that their totals reconcile with the balances of the control accounts.

Read up
Schedule of AR, AP
Control Accounts

………………………………………………………………………………………….
SCHOOL OF BUSINESS

 Note
 The trial balance does not balance.
 Error 4 wording is confusing and as such I have reworded it. Refer below.

Problem Question 6

Deli Yum owns a catering business that goes by the name Sedap Catering.
Ms. Mi, the bookkeeper, prepared a Trial Balance at the end of the financial year,
30 June 20X9, but the Trial Balance did not balance.

Sedap Catering
Trial Balance as at 30 June 20X9
Debit Credit
RM RM
Cash at Bank 8,780
Accounts Receivable 31,250
Food Supplies 7,320
Motor Vehicle 30,000
Office Furniture 70,000
Bank Loan 60,000
Accounts Payable 20,490
Salaries Expense 5,000
Revenue 40,000
Electricity Expense 450
Rent Expense 3,000
Interest Expenses 1,340
Sundry Expenses 2,000
Insurance Expenses 3,000
Deli Yum, Capital 48,610
Drawings 7,740
169,880 169,100
Ms Mi checked the accounts preparation in reverse order to trace the errors and
found the following:

1 A RM3,540 salaries expense in cash was wrongly posted as RM3,450 in both

of the relevant accounts.
2 A cash receipt of RM780 from customers in settlement of their accounts was
posted twice to the Cash at Bank account but correctly posted only once to
Accounts Receivable.
3 A RM450 credit sale was not recorded.
4 A purchase of food supplies for RM980 on credit was not recorded.
SCHOOL OF BUSINESS

5 The purchase of a delivery truck for RM60,000 using a loan was posted as a
credit to the Bank Loan Account and as a debit to the Office Furniture
Account.
6 A RM3,780 contribution by the owner was posted wrongly as a withdrawal of
cash by the owner from the business.

Required
a Journalize the errors in the general journal.
b Prepare an adjusted Trial Balance as at 30 June 20X9.
c Prepare an Income Statement and a Statement of Changes in Equity for the
year ended 30 June 20X9.
d Prepare a Balance Sheet as at 30 June 20X9.

Read up
Preparation of
Income Statement (P&L)
Statement of Changes in Equity
Balance Sheet (SOFP)

Suspense Account