Exercise 4:

Sky is commencing a landscape gardening business.

Record the following transactions using a general journal. Narrations are not required.

2018
Jan 1 Sky invested RM50,000 into the business bank account.
5 Sky purchased two lawn movers and gardening tools for RM5,000 on credit from XYZ Sdn Bhd.
7 Business performed services for customers and received cash of RM1,500.
8 Business paid for an advertisement in the local newspaper for a fee of RM50 by cash.
15 Business purchased a van valued at RM20,000 paying RM5,000 by cheque with the balance to be
paid within 3 months.
18 Business received cash RM600 for service performed to customers.
22 Business performed service valued at RM6,000 for customers. Business received RM3,500
cheque from customers and the balance on credit.
26 Business paid for the amount owed in Jan 5 by cheque.
28 Customers paid for the balance owed in Jan 22 by cheque.
30 Business paid salary RM6,000, utilities RM890 and rental RM2,500 by cheque.
31 Sky withdrew RM50 cash for his personal use.

General Journal
Date Details Debit (RM) Credit (RM)
2018
Jan 1 Bank 50,000
Capital 50,000

5 Equipment 5,000
XYZ Sdn Bhd 5,000

7 Cash 1,500
Sales 1,500

8 Advertising expense 50
Cash 50

15 Motor vehicle 20,000

Bank 5,000
Kah Motors Sdn Bhd 15,000

18 Cash 600
Sales 600

22 Bank 3,500
Account receivable 2,500
Sales 6,000

26 XYZ Sdn Bhd 5,000

Bank 5,000

28 Bank 2,500
Account receivable 2,500

30 Salary 6,000
Utilities 890
Rental 2,500
Bank 9,390

31 Drawings 50
Cash 50
 POSTING

Exercise 6

Further to Exercise 4, open ledger accounts and post the transactions.

General Ledger
Dr Cr
+ -
Bank
2018 2018
Jan 1 Capital 50,000 Jan 15 Motor vehicle 5,000
22 Sales 3,500 26 XYZ Sdn Bhd 5,000
28 Account receivable 2,500 30 Salary 6,000
Utilities 890
Rental 2,500

- +
Capital
2018
Jan 1 Bank 50,000

+ -
Equipment
2018
Jan 5 XYZ Sdn Bhd 5,000

- +
XYZ Sdn Bhd
2018 2018
Jan 26 Bank 5,000 Jan 5 Equipment 5,000

+ -
Advertising expense
2018
Jan 8 Cash 50

+ -
Motor vehicle
2018
Jan 15 Bank 5,000
Kah Motors Sdn Bhd 15,000

- +
Kah Motors Sdn Bhd
2018
Jan 15 Motor vehicle 15,000

- +
Sales
2018
Jan 7 Cash 1,500
18 Cash 600
22 Bank 3,500
Account receivable 2,500

+ -
Account receivable
2018 2018
Jan 22 Sales 2,500 Jan 28 Bank 2,500

+ -
Cash
2018 2018
Jan 7 Sales 1,500 Jan 8 Advertising expense 50
18 Sales 600 31 Drawings 50

+ -
Salary
2018
Jan 30 Bank 6,000

+ -
Utilities
2018
Jan 30 Bank 890

+ -
Rental
2018
Jan 30 Bank 2,500
+ -
Drawings
2018
Jan 31 Cash 50
Exercise 8 Exercise 10

Further to Exercise 6, balance the ledger accounts. Further to Exercise 8, prepare a trial balance as at 31 January 2018.

Bank Trial balance

2018 2018 As at 31 January 2018
Jan 1 Capital 50,000 Jan 15 Motor vehicle 5,000 Account title Debit (RM) Credit (RM)
22 Sales 3,500 26 XYZ Sdn Bhd 5,000 Bank 36,560
28 Account receivable 2,500 30 Salary 6,000 Capital 50,000
Utilities 890 Equipment 5,000
Rental 2,500 Advertising 50
31 Drawings 50 Motor vehicle 20,000
31 Balance c/d 36,560 Kah Motors Sdn Bhd 15,000
56,000 56,000 Sales 8,100
Feb 1 Balance b/d 36,560 Cash 2,050
Salary 6,000
Utilities 890
Capital Rental 2,500
2018 2018 Drawings 50
Jan 31 Balance c/d 50,000 Jan 1 Bank 50,000 73,100 73,100
50,000 50,000
Feb 1 Balance b/d 50,000

Equipment
2018 2018
Jan 5 XYZ Sdn Bhd 5,000 Jan 31 Balance c/d 5,000
5,000 5,000
Feb 1 Balance b/d 5,000

XYZ Sdn Bhd

2018 2018
Jan 31 Bank 5,000 Jan 5 Equipment 5,000
5,000 5,000

Advertising expense
2018 2018
Jan 8 Cash 50 Jan 31 Balance c/d 50
50 50
Feb 1 Balance b/d 50

Motor vehicle
2018 2018
Jan 15 Bank 5,000 Jan 31 Balance c/d 20,000
Kah Motors Sdn Bhd 15,000
20,000 20,000
Feb 1 Balance b/d 20,000

Kah Motors Sdn Bhd

2018 2018
Jan 31 Balance c/d 15,000 Jan 15 Motor vehicle 15,000
15,000 15,000
Feb 1 Balance b/d 15,000

Sales
2018 2018
Jan 31 Balance c/d 8,100 Jan 7 Cash 1,500
18 Cash 600
22 Bank 3,500
Account receivable 2,500
8,100 8,100
Feb 1 Balance b/d 8,100

Account receivable
2018 2018
Jan 22 Sales 2,500 Jan 28 Bank 2,500
2,500 2,500

Cash
2018 2018
Jan 7 Sales 1,500 Jan 8 Advertising expense 50
18 Sales 600 31 Balance c/d 2,050
2,100 2,100
Feb 1 Balance b/d 2,050

Salary
2018 2018
Jan 30 Bank 6,000 Jan 31 Balance c/d 6,000
6,000 6,000
Feb 1 Balance b/d 6,000

Utilities
2018 2018
Jan 30 Bank 890 Jan 31 Balance c/d 890
890 890
Feb 1 Balance b/d 890

Rental
2018 2018
Jan 30 Bank 2,500 Jan 31 Balance c/d 2,500
2,500 2,500
Feb 1 Balance b/d 2,500
 Drawings
2018 2018
Jan 31 Cash 50 Jan 31 Balance c/d 50
50 50
Feb 1 Balance b/d 50