PRINCIPLES OF ACCOUNTING FEBRUARY 2022 22 Cash sales to Mr Krishnan worth RM1,950 24 Paid salary amounting RM14,240 by cheque 26 Credit sales to MyNews Enterprise worth RM10,050 27 Bought Motor vehicle of RM58,000 through CIMB loan for the business use. 28 Paid interest of RM595 for loan from Maybank via bank transfer 30 Paid rental and utilities of RM6,500 and RM885 respectively. All payment were made by cheque Other additional information at the end of March 2022: i. The amount of salary paid included RM1,200 payment for March 2022 and RM800 for April 2022. ii. Utilities of RM200 and Rental of RM2,225 were still outstanding. iii. Depreciation is to be provided as follows: Machinery 10% on cost, yearly basis 10% on cost, yearly basis Furniture and Fixtures Motor vehicle 15% on reducing balance method, yearly basis PRINCIPLES OF ACCOUNTING FEBRUARY 2022 CASE STUDY: Ahmed is a founder of Celik Bookstore Sdn Bhd, a business that sells various products such as books, magazines, and stationery. He started a business with the help of his siblings who keep the business sustained until today. Routinely, Ahmed will check and review all transactions that occurred between customers, suppliers and employees at the end of each month. Considering that today is the first day of April 2022, Ahmed has decided to review the cumulative results for the month of March 2022 as well as the overall performance of the business. The documents reviewed were related to the financial year-end of the business as of March 2022. With the help of his account executive, all transactions for the months of March 2022 were summarized as below: Date Transactions 1 Ahmed brought in RM80,000 into business as capital and deposited all to bank account. 1 Purchased books amounted of RM10.500 and magazine amounted of RM7,500 from Puplar Media Bhd paid by cheque. 2 Bought on credit 2 units of multipurpose printing machine for printing services worth RM 2,415 each from Xerox Malaysia Berhad. 3 Cash sales RM560 of magazine to Ms Azirah. 4 Bought 5 units of laptop worth RM4,500 per unit from Acer Bhd by credit. 5 Sold 100 units of magazine priced at RM7.50 per unit to 8Eleven Mart on credit 6 Bought furniture and fixtures for RMB,480 on credit from Perabot Amin Enterprise 6 BEleven Mart return 16 units of magazines upon delivery as it damaged. 8 Sold 20 units of books worth RM2.500 to Tinta University which 60% was a cash sales. 10 Cash sales RM4,350 of Magazine to Mr Gapar 12 Sold 100 units of books to Faridah and Fadilah worth RM10,000 and RM18,500 respectively both with credit. Faridah return 1 unit of books on the next day, early in the morning. 14 Purchased books again from Sasbadi Printing Trading total RM8,440 on credit. 16 Full settlement by 8Eleven mart using cheque. 10% cash discount was given as early settlement made within a deadline. 18 Received cheque for RM1,850 being rental received from tenant. 20 Ahmed withdrew RM550 cash to prepare his daughter's birthday celebration CASE STUDY-BUSINESS TRANSACTIONS REPORTING Requirement: (a) (b) Write an introduction on the purpose of preparing financial statement. Prepare the journal entries for the above transactions. Prepare all relevant ledgers account (c) (d) Prepare trial balance as at 31 March 2022. (e) Prepare Statement of Profit or Loss for the month ended 31 March 2022 Prepare Statement of Financial Positions as of 31 March 2022 (f) (g) Based on their financial statement, write a conclusion on the financial status of the company
