Mr Imran opened a supplier business to a retail business a few years ago in Bayan Lepas, Penang. He closes his account every month. Given the trial balance of his grocery store for 30 June 2020 as follows:

Perniagaan Raya Sdn Bhd Predictive Balance 30 Jun 2020

Dt Kt RM RM 4,000 cash Accounts Receivable 6,500 25,000 Receivable Notes Supplies (Inventory) 15,000 Office Equipment 10,000 Accumulated Depreciation - Office Equipment 3,000 60,000 vehicles Accumulated Depreciation - Vehicles 6,000 Accounts Payable 3,780 272,720 Outstanding Notes Capital, Irfan 80,000 TOTAL RM120,500 RM120,500

The following are the business activities of Mr. Imran in July:

July 1 Pay RM 400 for July rent. And also pay electricity and water bills of RM150 and RM40 respectively. July 2 Buying stock amounting to RM2,000 on credit; of RM1,500 from Lim Trading and RM500 from Soon Enterprise. July 4 Purchased stock amounting to RM1,000 from Syarikat Ihsan. Pay RM200 in cash and the rest will be settled later. July 5 Pn Rahimah settled her debt of RM500. July 6 Make full payment to Sentosa Company amounting to RM800 after deducting the discount. July 7 Make cash sales amounting to RM6,100 July 8 Bought a truck worth RM80,000 from a Speed Vehicle Company. Pay RM30,000 and the rest will be paid on the 28th of each month for 50 months. Interest rate of 12%. July 10 Make sales on credit to Pn Dora Restaurant worth RM2,000. July 10 Buy supplies from Ihsan Company for RM10,000 on credit and will be paid after 60 days. July 11 Received a check from En. Bake worth RM4,000 July 12 Ms. Dora returned the goods purchased on July 10 because it did not meet the specifications worth RM200. July 12 Settled all debts to Lim Trading July 14 Rendering En. Bake after realizing the check cannot be cashed. July 15 En. Irfan took RM1,000 in cash from the business to repay the loan to the bank. The loan is a personal loan that was largely used for the purpose of setting up his business a few years ago. July 18 Pay telephone bills and petrol expenses amounting to RM240 and RM500 respectively. July 21 Ms. Dora cleared all her debts July 24 Made a sale to Jimat Sdn Bhd worth RM9,000. Save only 1/3 of the sales value. 28 July Make payment to Rahmat Sdn Bhd of RM750 July 28 Paying employees' salaries worth RM2,500 July 30 Make a credit sale to Handal Trading worth RM5,000.

Additional information:-

1. The following information is taken from the final balance of the subsidiary ledger accounts receivable and business payable accounts as at 30 June 2020.

Subsidiary Ledger Account not yet received Pn Rahimah RM 500 Restaurant Pn Dora 800 En Bakar 5,000 En Zaki 200

Subsidiary Ledger Accounts Payable Lim Trading RM 500 Mesra Bhd 1,000 Sentosa Company 880 Ramah Bhd 1,400

2. Depreciation allocation is calculated at the end of the year.

3. Sales cost is 60% of sales.

You are wanted:

1. Prepare journal entries for July transactions and transfer to general ledger and subsidiary ledger. 2. Prepare Income Statement and Balance Sheet (Balance Sheet). 3. Prove the subsidiary ledger of accounts receivable and accounts payable are the same as their respective control accounts.