Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sofia is a wholesale trader who is involved in buying and selling cosmetics. On 1 January 2020, she bought different shades of foundation and

image text in transcribed

Sofia is a wholesale trader who is involved in buying and selling cosmetics. On 1 January 2020, she bought different shades of foundation and mascaras from Moleq Trading costing RM3,200 which she paid by cheque. The next day, she also bought som brushes, cosmetic bags and eyelash curlers from Menawan Trading. The transaction cost her RM2,400 and she paid by cash. On 10 January 2020, Sofia sold several items of cosmetics for cash RM700 and a credit sale to Pesona Salon worth RM2,000. S Pesona Salon a 10% trade discount and a credit term of 3/15, n30. On the same day, she took out RM300 cash for her persona 22 January 2020, she purchased on credit a secondhand van from SuperCar Transport Company, costing RM45,000. She paid a deposit of RM10,000 for that purchase. To take advantage of the cash discount, Pesona Salon settled the amount due to the business on 25 January 2020. On 26 Janu Sofia paid RM450 for utility bills. She paid telephone bills of RM250 using her own money. On 30 January 2020, she brought in business her personal laptop, valued at RM3,200. (Note: The owner uses the periodic system to record the inventory) Required: Analyse each of the transactions above by showing the effect upon assets, liabilities, capitals, drawings, revenues and expense Note: Use the following format: E.g. January 1 Started business with RM5,000 cash. Date Asset Liability + Owner's Equity Capital Drawing+ Revenue Expense Jan 1 +5,000 +5,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting the basis for business decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

17th edition

007802577X, 978-0078025778

More Books

Students also viewed these Accounting questions

Question

O What information is reported in an income statement?

Answered: 1 week ago