FACULTY OF SPORT SCIENCE AND RECREATION

DIPLOMA OF SPORT MANAGEMNET AND RECREATION (SR11704)

INTRODUCTION TO FINANCIAL ACCOUNTING (ACC117)

GROUP PROJECT 1

GROUP MEMBERS:
NAME MATRIC NUMBER
1. MUHAMMAD HAZIQ BIN DELI 2021659828
2. MUHAMMAD IRSYADUDDIN BIN FAUZI 2021249906

PREPARED FOR:
MISS NUR AIMA SHAFIE

SUBMISSION DATE:
21 Dec. 2023

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TABLE OF CONTENTS

1.0
ACKNOWLEDGEMENT………………………………………………………….…….3
2.0
INTRODUCTION………………………………………………………………………..4
2.1 BUSSINESS
BACKGROUND…………………………………………………………….…...5
3.0
CONTENTS……………………………………………………………………………...8
3.1 BUSINESS
TRANSACTION…………………………………………………………………8
3.2 JOURNALS……………………………………………………………………...9
3.2.1 SALES
JOURNAL………………………………………………………...….9
3.2.2 PURCHASES JOURNAL………………………………………….9
3.2.3 RETURN INWARDS JOURNAL…………………………………..9
3.2.4 RETURN OUTWARDS JOURNAL………………………………10
3.2.5 CASH RECEIPT JOURNAL………………………...……………10
3.2.6 CASH PAYMENT JOURNAL…………………………………….11
3.2.7 GENERAL JOURNAL…………………………………………….11
3.3 LEDGERS……………………………………………………………………..12
3.3.1 GENERAL
LEGER…………………………………………………………..….12
3.3.2 PURCHASE LEDGER………………………………………….…15
3.3.3 SALES LEDGER…………………………………………………..16
3.4 TRIAL BALANCE…………………………………………...………...………17
4.0
CONCLUSION………………………………………………………………………
…18 5.0
REFERENCES………………………………………...……………………………
…19

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1.0 ACKNOWLEDGEMENT

First and foremost, we are very glad to finish this Project Group Assignment on the exactly due date
that given to us. All praises to Allah that gives all the strength and ideas to put all of our best attention
on this plain paper. So that, we have finished this paper with full of blessings words.

On the other hands, we want to say thank you very much to our dedicated lecturer, Miss NUR AIMA
SHAFIE for all of her good intentions to help us in every works we do along the ways to finish this
assignment. We know it is not an easy work to us and the rest of fellow friends as for some of us it is
our first time ruin a business. However, with the support from our kind-hearted lecturer we managed
to overcome all the obstacles and finish them successfully.

Not too late to mention to all of our fellow friends, thank you very much for supporting each other
from the beginning of this project until we work on our report. Although time is the big obstacle for
us, but we can do it together as a member of this class. Our family’s members, we are thankful to have
all of you that always support whatever we do in order to finish this study’s duty.

Last but not least, we hope this Project Group Assignment will open our eyes in gaining new
experiences and explore more knowledge about business in future. Hopefully, all of us will get flying
colours results soon.

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2.0 INTRODUCTION

This task is a group task that we have to complete in week 11. This task requires us as a group
to set up a business. The goal of this group project is for the students to work together as a
team to finish the accounting simulation assignment. Each team is required to turn in a written
report for the accounting simulation project at the conclusion of this group project. Each
student should display collaboration skills, which are described as a set of learned behaviours
that enable an individual to strive towards team goals while upholding their personal integrity.
We need to prepare business background, business transactions, various types of journals,
ledgers and trial balance to complete this task perfectly. The score from this assignment will
also greatly influence our overall score later.

2.1 BUSINESS BACKGROUND

We have set up a branded clothing business named Hiphaz which was formed by an idea one
of our group members. We choose that name to make it looks branded and elegant while keep
our friendship sign in there. It is because our business was established on 1 January 2023 by
four friends, and we want to cultivate a spirit of good friendship in each of our customers.
Therefore, we agreed to create a business that can makes our friendship sound bigger, happier
and sweeter. Even we set up the business together, but this business still classified as sole
proprietorship because we do not contribute the capital together. Only owner this business
put capital in business, which is RM65,000. At the same time, we as a friendship together set
up this business to make growth with put idea and give supporting each other. We bring for
our customers the most beautiful design of various outfits from our exclusive store. In our
business, we prepared the most attractive and limited design for the customers’ desires. We
are manufacturing a limited product to increase our sales at the same time providing
privileges to the customers. In order to attract more customers and advancing our business,
we have added a new style of producing the design which can give our customers more
satisfactions. The new style is more to customization their personal design they choose
themselves and we will proceed to put the design on any type of clothes that they want.
Besides, personalization is the best and the most famous ways that kids nowadays most like.
As we all know, according to the passages of times, people around the world like to follow

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up the latest trend. So, we think that we could take this opportunity as our advantage in the
business.

Next is the reason this business begin is purposed is to present to everyone about the
privileges give to the consumers to guide their wants. If there are the consumers who want to
customize the design from us, it will be an honour to our business because this show that they
trust us to conduct the next step. It is also revealed that we give each other the authority to
complete the process cleanly. Other than that, we are on the way to increase our sales and
profit. When the clients show off their satisfactions with the best services, they get from us
and the happiness of hearing our proposal, it means they are more likely to consume it. It
makes people more dominate to our products than other competitors in the market and this
will arouse our revenue while cover our operating expenses and costs for new products. These
figures support that 80% of customers will consume a product based on their services and
communications.

In addition, we have chosen the best location for our store to be built as at we all know,
location is the most necessary factor in organization’s development. Because of that, we
choose to set up our store in the Sunway Pyramid Shopping Mall at Petaling Jaya, Selangor.
The reason of our choice is because Sunway Pyramid Shopping Mall is one of the most
popular malls in Malaysia. It has a strategic position in the heart of developed city and is
surrounded by complete infrastructure for the public. Sunway Pyramid also known by their
huge awards that they receive such as ICSC APAC AWARDS 2019 which is gold for
emerging/digital technology, MARKETING EVENTS AWARD 2019 which is silver for best
shopper/retail event and others. Such a big award like this will makes the mall such an
exclusive venue to visit and the biggest honour to shopping from there. Thus, making the
shops and stores their prestigious stores at the same time the tourists’ attractions. This reason
will get us more customers to be served to raise our profit.

Every business however sole proprietorship, partnership or also company has their own
mission and goals. For our most valuable mission is design and deliver authentic, outdoor,
high-value products for active consumes of all ages. This also come along with the
magnificent targets or objectives like we want to impress our customers with the high quality
of our products, whether it comes from the design or the fabric of clothes. Then, we want
everyone to be eager to buy our products. We have a team of six designers and each design
we make will only be produced in four pairs so that construct our brand as limited design.
Next, we want our customers to always hip and stylish and we want to meet our customers’
needs which means we made beautiful designs that always follow up with the trend but given
the option of providing their own design at once. Lastly, we want our product to be perceived

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as branded but at a reasonable price. In this case, our consumers would not be hesitant to
purchase our products. End the end of financial year, HIPHAZ Enterprise target the sales
more than RM300,000 for the first year.

• On 1 January 2023, a leader of group member started their own business after their
graduate with the name HIPHAZ ENTERPRISE.

• HIPHAZ focused sell clothes with their own design and has various types of clothing
like short sleeves, long sleeves, with collar or non-collar and hoodie, and sweatshirt.

• HIPHAZ use machines to create designs that customers like. HIPHAZ provides
various types of clothing fabrics to be designed such as cotton, rayon, chiffon and
others to maintain comfort for the customer.

• This business provides a service where customers can make a request to make their
own design with clothes provided from HIPHAZ.

• The purpose this business is to introduce new way to sell clothes by having unique
design or fulfil the request from customer.

Business Name HIPHAZ Enterprise

Owner

Date establishes 1 January 2023

Business Activity Buying material production and selling finished good, branded
clothing
Product or goods to be Branded Clothing
sold

LIST SUPPLIER AND CUSTOMER

Account payable Account Receivable
1. SA Cotton 1. Saleha
2. PA Sewing 2. Aizat
3. ZAZA Sewing 3. Hadi

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NOTES FOR BUSINESS TRANSACTION

Notes Transaction Notes Transaction

1 1 cash and 1 non-cash capital 8 1 credit purchase of noncurrent
contributions asset
2 3 credit purchase 9 1 cash purchase of non-current
asset
3 1 cash purchase 10 1 cash drawing
4 3 credit sales 11 1 goods drawing
5 1 cash sale 12 1 non-current liabilities
6 2 purchase returns 13 2 expenses
7 2 sales return 14 2 incomes

3.0 CONTENT
3.1 BUSINESS TRANSACTION
the following are business transaction of HIPHAZ Enterprise in January 2023.
DATE BUSINESS TRANSACTION *NOTES

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1 Brought additional cash of RM40,000 in bank and office furniture of 1
RM25,000 into the business.
2 Purchase material goods from SA Cotton by credit RM25,000 by credit. 2
(Invoice No.201)
4 Bought material goods from PA Sewing by credit RM12,500 (Invoice 2
No.202)
5 Sold to Farhana 29 units of Hiphaz Brand amount RM6,500 by cash. (Receipt 5
No. 501)
6 Buy a new office equipment worth RM6,500 by cash. (Cheque No.901) 9

8 Sold goods to Saleha 50 units of Hiphaz Brand by credit RM12,300. (Invoice 4

No.401)
9 Return goods to SA Cotton due to damage plug RM250. (CN No.601) 6

10 Buy a furniture & fittings from Mus Furniture on credit RM 500. (Invoice 8
No.801)
12 Purchase goods by credit from ZAZA Sewing RM 8,000. (Invoice No.203) 2

14 Return half of goods to ZAZA Sewing due to wrong item delivered. (CN 6
No.602)

15 Sold goods to Aizat RM4,900 by credit (Invoice No.402) 4

16 Sales return from Saleha to damaged good RM1,200 (Credit noted No. 7
CN701)
17 Purchase goods from Dinda Store by cheque RM2,000. (Cheque No. 301) 3

19 Business owner’s take cash RM650 for personal use 10

20 Sold goods to Hadi RM 44,000 by credit. (Invoice No. 403) 4

21 Business owner’s take goods worth RM650 to give his wife 11

24 Make a long-term loan RM70,000 from RHB Bank. (Receipt No.0012) 12

25 Paid utility expenses by cheque RM750. (Cheque No. 131) 13

26 Receive commission from Youtube channel for content video about brand 14
(Receipt No.141)
28 Paid for Advertisement RM3,000 by cash (Cheque No. 132) 13

29 Return from Aizat RM900 due to wrong brand delivered (Credit Notes No. 7
CN702).
30 Receive from rental income RM1,000 (Cheque No.142) 14

3.2 JOURNAL

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 Sales Journal

Date Particulars Invoice No. Folio Amount (RM)

8/1/2023 Saleha INV401 SL1 12,300

15/1/2023 Aizat INV402 SL2 4,900
20/1/2023 Hadi INV403 SL3 44,000

Purchases
Journal
Date Particulars Invoice No. Folio Amount (RM)

2/1/2023 SA Cotton INV201 PL1 25,000

4/1/2023 PA Sewing INV202 PL2 12,500
12/1/2023 ZAZA Sewing INV203 PL3 8,000

Return Inwards
Journal
Date Particulars Credit Note No. Folio Amount (RM)
16/1/2023 Saleha CN701 SL1 1,200
29/1/2023 Aizat CN702 SL2 900

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 Return Outwards Journal

Date Particulars Credit Note No. Folio Amount (RM)

9/1/2023 SA Cotton CN601 PL1 250
14/1/2023 ZAZA Sewing CN602 PL3 4,000

Cash Receipts Journal

Other
Dat Receip t
Details Folio Bank A/R Sales Account
e No.
(RM) (RM) (RM) (RM)

5/1 501 Farhana SL 6,500 6500

Loan-term loan from
24/1 0012 RHB Bank GL 70,000 70,000
Commision from Youtube
26/1 131 GL 1,000 1,000
28/1
132 Rental received GL 300 300

Cash Payment Journal

Other
Dat Chequ e A/P PURCHAS Account
Details Folio Bank
e No. (RM) E (RM)
(RM)
(RM)
Buy a new office
6/1 801 equipment GL 6,500 6,500
Paid goods to Dinda Store
17/1 301 PL 2,000 2,000
25/1
131 Utility Bill GL 750 750

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28/1 132 Advertisement GL 3,000 3,000

General Journal

Date Description Folio Debit Credit

1/1 Bank GL 40,000

Capital GL 40,000

1/1 Office Equipment GL 25,000

Capital GL 25,000

10/1 Furniture & Fittings GL 500

Mus Furniture APL 500

19/1 Drawings GL 650

Bank GL 650

21/1 Drawings GL 550

Purchases PL 550

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3.3 LEDGER

General Ledger

Office Equipment a/c

PARTICULARS RM PARTICULARS RM

Capital 25,000 Balance c/d 31,500

Bank 6,500

31,500 31,500

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 Return Inward a/c
PARTICULARS RM PARTICULARS RM

A/R - Saleha 1,200 SOPOL 2,100

A/R - Aizat 900

2,100 2,100

Return Outwards a/c

PARTICULARS RM PARTICULARS RM

SOPOL 4,250 A/P - SA Cotton 250

A/P - ZAZA Sewing 4,000

4,250 4,250

Rental Received a/c

PARTICULARS RM PARTICULARS RM

SOPOL 1,000 Bank 1,000

1,000 1,000

Long-term loan a/c

PARTICULARS RM PARTICULARS RM

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Balance c/d 70,000 Bank 70,000

70,000 70,000

PARTICULARS RM PARTICULARS RM

Balance c/d 65,000 Bank 40,000

Office Equipment 25,000

65,000 65,000

Capital a/c

Drawings a/c
PARTICULARS RM PARTICULARS RM

Purchases 650 Balance c/d 1,300

Bank 650

1,300 1,300

Bank a/c
PARTICULARS RM PARTICULARS RM

Capital 40,000 Purchases 2,000

Sales 6,500 Utility Exp 750

Commision received 300 Advertisement Exp 3,000

Rental received 1,000 Office Equipment 6,500

Loan-term loan 70,000 Drawings 650

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 Balance c/d 104,900

117,800 117,800

Purchase Ledger

Account Payable - SA Cotton

PARTICULARS RM PARTICULARS RM

Return Outwards 250 Purchases 25,000

Balance c/d 24,750

25,000 25,000

Account Payable - PA Sewing

PARTICULARS RM PARTICULARS RM

Balance c/d 12,500 Purchases 12,500

12,500 12,500
Account Payable - ZAZA Sewing
PARTICULARS RM PARTICULARS RM

Return Outwards 4,000 Purchases 8,000

Balance c/d 4,000

8,000 8,000

Account Payable - Mus Furniture

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 PARTICULARS RM PARTICULARS RM

Balance c/d 500 Furniture & Fittings 500

500 500

Purchases a/c
PARTICULARS RM PARTICULARS RM

A/P - SA Cotton 25,000 Drawings 650

A/P - PA Sewing 12,500 SOPOL 46,850

A/P - ZAZA Sewing 8,000

Bank 2,000

47,500 47,500

SALES LEDGER

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 Sales a/c
PARTICULARS RM PARTICULARS RM

SOPOL 67,700 A/R - Saleha 12,300

A/R - Aizat 4,900

A/R - Hadi 44,000

Bank 6,500

67,700 67,700
3.4 TRIAL BALANCE

TRIAL BALANCE AS AT 31 JANUARY 2023

PARTICULARS DEBIT (RM) CREDIT (RM)

Purchase 46,850
Sales 67,700
A/R - Saleha 11,100
A/R - Aizat 4,000

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 A/R - Hadi 44,000
Bank 104,900
Furniture & Fittings 500
Office Equipment 31,500
A/P - SA Cotton 24,750
A/P - PA Sewing 12,500
A/P - ZAZA Sewing 4,000
A/P - Mus Furniture 500
Return Inwards 2,100
Return Outward 4,250
Drawings 1,300
Commision received 300
Rental received 1,000
Utility Bill 750
Advertisement 3,000
Long-term loan 70,000
Capital 65,000

TOTAL 250,000 250,000

4.0 CONCLUSION

Throughout this assignment, we learned how to create a business plan for a new
venture. We can settle this proposal with great cooperation because we have many people
around us who help us especially our parents and our lecturer. We create our own clothing
company. We named our company by our names. We decide how much capital contribution
into the business, how much cash and what the asset be chosen to brings in business as a
capital. During the completion of the assignment, I have significantly enhanced my
comprehension of financial statements, encompassing the create business transaction, journal,
ledger and balance sheet statement. These statements collectively offer a comprehensive
perspective on a company's financial performance, liquidity, and overall position. In

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summary, the financial accounting assignment offered a valuable opportunity to apply
theoretical concepts in practical scenarios, providing me with valuable insights into the realms
of financial reporting, analysis, and decision-making. It served as a reinforcement of the
fundamental principles of accuracy, transparency, and ethical conduct that are vital in the field
of financial accounting.

5.0 REFERENCES

1. Bragg, S. (2022, August 1). Business transaction definition — AccountingTools.

Business Transaction Definition &Mdash; AccountingTools.
https://www.accountingtools.com/articles/business-transaction

2. What Is an Accounting Journal? | Definition of Journal in Accounting. (2000, January 1).

FreshBooks. https://www.freshbooks.com/hub/accounting/an-accounting-journal

3. What are Ledger Accounts and the General Ledger? (2023, January 1). YouTube.
https://www.youtube.com/watch?v=lMcqJYNp404

4. Trial Balance: Definition, How It Works, Purpose, and Requirements. (2023, March 19).
Investopedia. https://www.investopedia.com/terms/t/trial_balance.asp

5. How to Prepare a Trial Balance Accounting Principles. (2014, December 15). YouTube.
https://www.youtube.com/watch?v=PMH6nw2OPHI

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