Scribd
Upload
20 views4 pages

Journal Entries and Transactions Analysis

The document provides information on various business transactions and requires the reader to: 1) Identify the effect of each transaction on various accounts and state the corresponding journal entries. 2) Complete a table showing which accounts would be debited and credited for different transactions. 3) Journalize transactions, open ledger accounts, and prepare a trial balance for a laundry shop for the month of September based on given financial information.

Uploaded by

HAM WEI QUAN
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
20 views4 pages

Journal Entries and Transactions Analysis

The document provides information on various business transactions and requires the reader to: 1) Identify the effect of each transaction on various accounts and state the corresponding journal entries. 2) Complete a table showing which accounts would be debited and credited for different transactions. 3) Journalize transactions, open ledger accounts, and prepare a trial balance for a laundry shop for the month of September based on given financial information.

Uploaded by

HAM WEI QUAN
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1

You are required to show the effects of the following transactions on assets, owner’s
equity, liabilities, revenue and expenses and state the journal entries.

Transactions Effect Journal entry

1 Bought goods on credit RM1,000


2 Purchase a machine RM18,000 by
cheque
3 Paid transportation RM240 by cash for
goods delivered to customers
4 Owner took goods worth RM200 for
own use
5 Paid creditor for amount due by cash
RM500
6 Returned goods bought on credit
RM100

2
Complete the following table showing which accounts are to be credited and which to
be debited:
Transactions Account to be Account to be
debited credited
1 Bought motor van for cash
2 Bought office machinery on credit from Jaya
Sdn. Bhd.
3 Introduced capital in cash
4 A debtor Ismail pays us by cheque
5 Paid a creditor Ahmad in cash
6 Returned machinery to Jaya Sdn. Bhd.
7 Julia lends us money, giving it to us by
cheque
8 Paid insurance by cheque
9 Received sales commission by cheque
10 Rent received by premises sub-let by cheque
11 Paid salaries by cash
12 Took cash out of business for private use
13 Paid general expenses by cheque

4
Aminah opened a laundry shop on 1 September 2019. During the first month of operations,
the following transactions occurred:
Sep 1 Invested RM20,000 cash in the business
2 Paid RM1,000 cash for store rent for the month of September
3 Purchased washers and dryers for RM25,000 paying RM10,000 in cash
and the balance by obtaining a loan from the bank
4 Paid RM1,200 for a one-year accident insurance policy
10 Received a bill of RM200 from “The New Straits Times” for
advertising the opening of the laundry shop
17 Withdrew RM700 cash for personal use
30 Cash receipts for laundry fees for the month were RM6,200
You are required to:
• Journalise the September transactions
• Open ledger accounts and post the September transactions
• Prepare the trial balance as at 30 September 2019

You might also like