2 (June 2014) A. Ali is the owner of Ali Trading since year 2013. Below are the business transactions of Ali Trading for the month of April 2014. April 1 Ali Trading bought goods from Kiki Trading on credit amounting to RM20,000. 2 A customer bought goods from Ali Trading RM200 by cash. 3 Ali Trading paid utility bills amounting to RM300 by cash. 4 Ali Trading took a loan from Public Bank of RM50,000 by cheque. 5 6 7 8 10 11 12 Hassan who is in debt with Ali Trading returned goods amounted RM200. Ali Trading returned damaged goods costing RM1,500 to Kiki Trading. Ali bought a van costing RM25,000 by cash for the business operation. Ali took cash and goods valued RM200 and RM300 respectively from the business for his personal used. Ali incurred costs to repair the business's van amounted to RM500 and paid by cash. Ali invested an amount of RM10,000 by cheque in fixed deposit account. Ali Trading settled its debt with Kiki Trading by cheque. Hassan settled his debt to Ali Trading for an amount of RM500 by cash. Ali paid his employees salary amounting to RM2,000 by cheque. 13 14 Ali received rental income from Aisyah amounted to RM300 by cheque. Required: Prepare the journal entries for each of the transactions above from April 1 to April a. 8. An example is given to guide you: TRANSACTION JOURNAL ENTRY Ali started his business by investing some cash of RM50,000. Dr. Cash 50,000 Cr. Capital 50,000 b. Identify the effects (increase or decrease) for each of the transactions from April 9 to April 14 on assets, liabilities, capital, revenue or expenses. An example is given to guide you: B. TRANSACTION INCREASE DECREASE Asset Ali paid advertising expenses Expenses RM300 by cash. The following are the business transactions related to KORI Enterprise: Business transactions Example: Bought machinery by cash valued RM15,000. 1. Bought goods RM30,200 on credit from XYZ Trading. Book of Prime entry Cash Payment Journal 2. Paid rental expenses amounted to RM2,500 by cheque. 3. 4. A customer returned damaged goods previously sold on credit amounted to RM5,340. Bought a delivery van on credit from Ah Seng Motor at the cost of RM75,000. 5. Sold goods on credit to EQ Trading for RM25,100. 6. Returned damaged goods previously purchased on credit to its supplier, XYZ Trading, amounted to RM2,300. 7. Sold goods by cash for RM25,100. 8. Purchased office furniture worth RM6,000 on credit from Alan. 9. Received RM100 from Ali by cash. 10. Transferred RM10,000 from bank to petty cash. Required: Indicate the relevant books of prime entry for each of the transactions above. An example is given to guide you