Question 1

Doorforyou Sdn Bhd is a door manufacturing company that manufactures timber doors, wooden doors, plywood doors and skin doors. Their wooden door is actively involved in construction projects, hardware dealers and contractors. The company purchases woods, stains, and finishes from numerous suppliers. The following describes the companys purchases and cash payments procedures.

The inventory control clerk monitors raw material and finished goods inventory levels. When raw material drops to a predetermined reorder point, the clerk prepares a purchase requisition. The clerk sends to the purchasing agent, who prepares five copies of a purchase order. Two copies are sent directly to the vendor. One is used to post to the purchase journal and placed in an open purchase order file. The Account Payable (AP) and the receiving department also receive a copy of each purchase order, which they file temporarily. Each week, the purchasing agent prepares a journal voucher from the purchases journal and sends it to the general ledger department for posting.

Upon receiving the raw materials, the receiving department clerk creates four copies of the receiving report. One copy is sent to the raw materials warehouse, and a copy is sent to the AP department. One copy is sent to the inventory control department where it is used to update the inventory records. The final copy is sent to the purchasing department, where it is filed.

Vendors send their invoices to the AP department, where they are reconciled with the receiving reports and purchase orders. The AP clerk then creates an AP record in the AP subsidiary ledger.

On the AP due date, the AP clerk sends the purchase order, receiving report, and invoice to the cash disbursement clerk who prepares a cheque and sends it to the vendor. After the preparation of the cheques, the supporting documents are sent back to the AP department. Each week, the AP clerk sends a journal voucher to the general ledger department for posting to the control account.

You are required to prepare the Resources, Events, Agents (REA) model to support the purchase and cash payment process. You need to show the cardinalities for all the associations.

[15 Marks]