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Date Transactions 1st September The owner started the business with an initial capital of RM 100,000 cash in bank,

RM 5,000 cash, RM 50,000 office furniture, RM 30,000 computer equipment. RM 30,000 renovation.


2nd September Purchased a motor van from Lim Motors costing RM 70,000. Deposit of RM 10,000 was paid by cheque and the balance is to be paid by a hire purchase instalment plan starting from next month. Hire purchase facility is with CIMB Bank.


3rd September Received invoices from Alim Enterprises RM 17,000 and Harry Enterprises RM 13,000 for goods purchased. Incurred a total of RM 600 as transportation cost for these purchases, paid cash for this.


3rd September Office rental for the month is RM 1,500. The Company paid 2 months rental deposit of RM 3,000 and RM 6,000 as advance rental via cheque. 4th September Sold goods on credit to Zury RM 5,000 and Khairy RM 12,000. 

 

5th September Placed an investment via cheque amounting to RM 15,000 for purchase of shares with Pelangi Berhad. 

 

6th September Paid RM 500 cash for the month's electricity expense.


8th September The owner withdrew goods worth RM 400 for personal use.

10th September  Food and refreshments for staff RM 200. Paid cash for this. 

10th September Zury returned RM 500 worth of goods, as they were defected.

15th September Cash sales of RM 5,000 20th September Company received a loan from bank for its business RM 100,000.

22nd September Zury settled his account by cheque and received a cash discount of 5%.

24th September Khairy paid RM 1,500 cheque towards his account balance.

25th September Issued cheques of RM 10,000 being salaries for the month.

26th September Received telephone bill for the month RM 600. 

27th September Sold goods on credit to Charles RM 5,000. 

 30th September Company depreciates its assets using the straight-line method. The rate is 10% for office furniture, 20% for computer equipment, 10% for renovation and 20% for motor vehicles.

30th September Closing inventory is valued at RM 20000 

 

 

  

 

Based on the above information : 

a) Prepare journal entries, using the General Journal, Sales Journal and Purchases Journal, Sales Returns Journal, Purchases Returns Journal.         (20 marks) 

 

b) Cash Book as at 30th September 2019.          (10 marks) 

 

 

c) Post the above transactions to their respective ledgers        (15 marks) 

 

  d)Trial Balance for the month ending 30th September 2019.     (15 marks) 

 

e) Statement of Comprehensive Income for the month ending 30th September 2019.               (10 marks) 

 

f) Statement of Financial Position as at 30th September 2019.        (10 marks) 

 

g) Based on the financial statements prepared above, calculate the following ratios.   

 i) Gross Profit ratio        (1.5 marks)

ii) Net Profit ratio           (1.5 marks)

iii) Returns on Capital Employed (ROCE)  (1.5 marks)

iv) Current ratio        (1.5 marks)

v) Acid test ratio       (1.5 marks)

vi) Debtors collection period      (1.5 marks)

vii)Creditors payment period      (1.5 marks)

viii) Total asset turnover ratio      (1.5 marks) 

 

h) Interpret the above ratios in terms of the profitability, liquidity and the asset utilisation of the Company.             (8 marks)   

 

 

 

Top Answer

The journal entries, ledger, comprehensive... View the full answer

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Date
Particulars
Amount (Dr.) Amount (Cr.)
Sept 1
Bank A/c
100,000
Cash A/c
5,000
Furniture A/c
50,000
Computer Equipment A/c
30,000
Renovation A/c
30,000
To Capital A/c
215,000
Sept 2
Motor Van...

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