Tutorial 2

Problem 1: Transactions

1^st January 2019, Miss Nancy opens a business. The transaction incurred as follows:-

1. Invested RM 10,000 cash to start the business.

2. Purchase equipment for RM 5,000 cash.

3. Paid RM 400 cash for January office rent.

4. Received RM 5,100 from customers for service provides.

5. Withdrew RM 1,000 cash for personal use.

6. Paid part-time employee salaries of RM 2,000.

7. Incurred RM 250 of advertising cost, on account.

8. Provided RM 750 of services on account to customers.

9. Collected RM 120 cash for services previously billed.

Required:

1. Prepare the journalising of the following transactions for the month of January for Miss Nancy. Used the below table for your journal format.

Date	Descriptions	Ref	Debit	Credit

2. Posting all the account in journal to general ledger.

3. Prepare the trial balance and,

4. Prepare the Income statement, Balance Sheet as at 31 January 2019.

Problem 2: Transactions

Question 2

Rosalinda began professional practice as a junior accountant on Jan 1. She plans to prepare a monthly financial statement. During Jan 2019, the owner completed these transactions:

1. Jan 1, Owner invested 500,000 cash along with computer equipment that had a market value of 120,000 two years ago but was now worth 100,000 only.

2. Jan 2. Paid 15,000 cash for the rent of office space for the month.

3. Jan 4. Purchased 12,000 of additional equipment on credit (due within 30 days).

4. Jan 8. Completed a work for a client and immediately collected the 32,000 cash.

5. Jan 10. Completed work for a client and sent a bill for 27,000 to be paid within 30 days.

6. Jan 12. Purchased additional equipment for 8,000 in cash.

7. Jan 15. Paid assistant 6,200 cash as wages for 15 days.

8. Jan 18. Collected 15,000 on the amount owed by the client.

9. Jan 25. Paid 12,000 cash to settle the liability on the equipment purchased.

10. Jan 28. Owner withdrew 500 cash for personal use.

11. Jan 30. Completed work for another client who paid only 40,000 for 50% of the service.

12. Jan 31. Paid salary of assistant 700.

13. Jan 31. Received Electrical bill, 1,800 and Water bill 3,800.

Required:

1. Prepare the journal entries and post it to respective ledger and,

2. Prepare the trial balance