Question
Hakim started a toy shop business on 1 August 2022. He started the business with an investment of RM 5,000. From this amount of investment,
Hakim started a toy shop business on 1 August 2022. He started the business with an investment of RM 5,000. From this amount of investment, RM 1,000 was in cash and RM 4,000 was in bank account.
August |
|
1 | Borrow from Citibank RM 2,000 |
2 | Paid rent for office RM 750 using online banking |
5 | Paid wages to shop assistant RM 120 by cash |
6 | Bought a computer RM 3,000 in cash |
8 | Purchased goods RM 1,380 by cheque |
10 | Sold toys for RM 650 cash |
12 | Withdrew RM 200 cash to pay for his mothers medical bills |
15 | Bought goods on credit from Siam Sdn Bhd RM 830 |
18 | Sold goods on credit to Kenny Enterprise for RM 1,250 |
19 | Purchased goods worth RM 3,789 from Panda Sdn Bhd, paid by cheque RM 2,000 and balance to be paid in the next month |
20 | Bought office equipment by online banking RM 2,500 |
23 | Paid electricity bills RM 325 by cash |
25 | Paid internet bills for RM 230 by online banking |
27 | Returned goods amounted to RM 515 that previously purchased from Panda Sdn Bhd |
28 | Returned damaged goods worth RM 310 to Siam Sdn Bhd |
29 | Kenny Enterprise return wrong colour goods of RM 480 |
30 | Bought stationeries of RM 90 using cash money |
30 | Hakim invested further RM 3,000 into the business |
31 | Paid RM 300 to Siam Sdn Bhd through online banking |
31 | Received cheque from Kenny Enterprise RM 500 |
Required:
a) Prepare a Prime Book Entry for the above transactions
b) Record the transactions in Ledgers and Balance-off the ledgers.
c) Extract a trial balance.
d) Prepare Statement of Profit or Loss & Statement of Financial Position
e) Good accounting practices in a business protect the company from any fraudulent activities and ensure the credibility of a business. Briefly explain how accountant can ensure good accounting practices being implemented in a business.
f) Discuss two (2) external users and two (2) internal users of accounting information and explain two (2) importance of financial information to these users.
g) Explain the advantages and disadvantages of the following business entities: -
Sole Proprietorship
Companies
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