QUESTION 1 (30 MARKS)

On 1 April 2020, Azni started a business, Stingray Trading, which sells sports equipment.He brought into the business a used car valued at RM48,000 and cash RM200,000.

The business transactions in April 2020 for Stingray Trading were as follows:

2020

April

2Opened a bank account with Ar-Rajhi and transferred cash

RM180,000 into the bank.

3Paid rent RM3,200 by cheque.Paid RM11,200 by cheque for the purchase of office equipment from Fitness Centre.

5Received invoices from:

Rosman Sdn BhdRM16,000

ZulJoeRM18,000

6Azni withdrew cash RM2,400 for his own use.

7Cash sales of RM2,600 was credited into the bank.

8Paid service maintenance on car RM280 by cash.

10 Received cash RM60 from customer for repairing sports equipment.

12Cash sales RM1,620.

13Received a credit note from Rosman Sdn Bhd for goods returned to the amount of RM1,200.

14Credit sales to Excellent Sports RM4,800.

15Purchased a car on credit from Lion Motor costing RM40,000 and paid RM3,000 by cheque for installing a radio unit into the car.

16Azni took a table tennis set which cost RM800 for her personal use.

18 Received a cheque from Excellent Sports to settle his account less 2% discount.

23 Paid office expenses by cash RM500.

30 Paid Rosman Sdn Bhd half of the amount owed by cheque.

You are required to prepare:

a.Journalise the above transactions.

(10 marks)

b.All necessary T-Accounts.

(14 marks)

c. Trial Balance as at 30 April 2020.