Reference no: EM132587184
QUESTION 1 - Puan Shida and her sons are the owners of Impak Maksima Sdn Bhd. They started their stationary business on 1 January 2013. None of them has accounting background. At the end of the accounting period which is on 31 December 2013, they have difficulties in preparing financial reports for their business. Since you have knowledge in accounting, they seek your help to prepare the reports. Given below are the particulars of Impak Maksima Sdn Bhd.
Particulars Amount (RM)
Building 80,000
Account receivables 30,000
Rent received 1,300
Electricity bill 250
Loan from bank Islam 38,200
Short term deposit 7,550
Interest on loan 200
Commission revenue 2,000
Account payable 2,300
Cash at bank 28,500
Insurance 1,200
Repairs 500
Required - Based on the scenario above, answer the following questions:
1. State the type of business entity owned by Puan Shida and her sons?
2. State any 5 characteristic possessed by Impak Maksima Sdn Bhd?
3. Classify the items above into assets and liabilities?
4. Calculate the total amount of assets.
5. Calculate the total amount of expenses.
6. Calculate the total amount of liabilities.
7. Calculate total amount of revenue.
8. Calculate total amount of capital Impak Maksima Sdn Bhd using the accounting equation.
9. If the building has to be depreciated at 10% per annum using the straight line method, calculate the amount of depreciation for a year. (Assuming depreciation was so provided for a full year in the year of purchase)
QUESTION 2 - A. Aminah Trading is a stationary store and owned by Aminah. Below are the transactions Aminah Trading for the month of October 2018.
October 1 Aminah bought goods from Kiku Trading on credit amounting to RM20,000.
October 2 A customer bought goods from Aminah Trading RM200 by cash.
October 3 Aminah paid utility bills amounting to RM300 by cash.
October 4 Aminah took a loan from Public Bank of RM50,000 by cheque.
October 5 Hassan who is in debt with Aminah Trading returned goods amounted RM200.
October 6 Aminah returned damaged goods costing RM1,500 to Kiku Trading.
October 7 Aminah bought a van costing RM25,000 by cash for the business operation.
October 8 Aminah took cash and goods valued RM200 and RM300 respectively from the business for his personal used.
October 9 Aminah incurred costs to repair the business's van amounted to RM500 and paid by cash.
October 10 Aminah invested an amount of RM10,000 by cheque in fixed deposit account.
October 11 Aminah settled its debts with Kiku Trading by cheque.
October 12 Hassan settled his debt to Siti Trading for an amount of RM5,000 by cash.
October 13 Aminah paid his employees salary amounting to RM2,000 by cheque.
October 14 Aminah received rental income from Aisyah amounted to RM300 by cheque.
Required: a) Prepare the journal entries for each of the transactions above.
b) Identify the effects (increase or decrease) for each of the transactions given from April 9 to April 14 on assets, liabilities, capital, revenue or expenses.
B. The following are the business transactions related to KORI Enterprise:
Business transactions
Book of prime entry
Example: Bought machinery by cash valued RM15,000
Cash Payment Journal
Business transactions
Book of prime entry
Example: Bought machinery by cash valued RM15,000
Cash Payment Journal
Business transactions Book of prime entry
Example: Bought machinery by cash valued RM15,000 Cash Payment Journal
1 Bought goods RM30,200 on credit from WST Trading.
2 Paid rental expenses amounted to RM25,000 by cheque.
3 A customer returned damaged goods previously sold on credit amounted to RM5,340.
4 Bought delivery van on credit from Ah Bong the cost of RM75,000
5 Sold goods on credit to QE Trading for RM25,100
Required: Indicate the relevant books of prime entry for each of the transactions above.