Question 2

Harrys business position at 1 July was as follow:

RM

Inventory 5,000

Equipment 3,700

Creditor (Maju Ent.) 500

Debtor (Abadi Ent.) 300

Bank balance 1,200

During July, he:

RM

Sold goods for cash paid to bank 3,200

Sold goods to Abadi Ent. 600

Bought goods from Maju Ent. 3,900

Paid Maju Ent. by cheque 3,000

Paid general expenses by cheque 500

Abadi Ent. paid by cheque 300

Inventory at 31 July was RM6,200

Required:

1. Open ledger accounts (including capital) at 1 July
2. Record all transactions
3. Prepare a trial balance
4. Prepare an income statement for the period
5. Prepare a statement of financial position as at 31 July