QUESTION

You are planning to start a business right after completing your study. As a sole owner or partners
of the business, you will contribute cash and other non - current assets as capital of the business.
You may also borrow from any financial institution to finance your business.

You are required to:

a. Create transactions for the business for one month.

(10 marks)
b. Record the transactions in the general journals.
(20 marks)
c. Post the journal entries into relevant ledgers.
(30 marks)
d. Prepare trial balance at the end of the month.
(10 marks)
e. Prepare the statement of financial position and statement of comprehensive income at the
end of the month.
(30 marks)

(TOTAL MARKS:100 MARKS)

CONTENTS OF THE REPORT

The report should contain the followings:

I) Background of the business including name, address, location etc.

II) Business transaction:

o Contribution of capital by the owner

o 3 credit purchase
o 2 cash purchase
o 4 credit sales
o 2 cash sales
o 2 purchase of non - current asset
o 2 payments to supplier plus discount
o 2 payment by debtors plus discount
o 4 transactions on payments of expenses
o 2 transactions of revenue received
o 2 transactions of non - current liabilities
o Drawing of cash and goods by the owner
o 1 transaction on sales return
o 1 transaction on purchase return

III) General and specific journal’

IV) Ledgers
V) Trial balance
VI) Statements of comprehensive income and statement of financial position
Business Name: FHI Sports Trading

Business Address: No. 46, Jalan Pisang 2, 32800 Ipoh, Perak

Type of Business: Partnership

• Contribution of capital by the owner

o Building worth RM 80,000
o Machinery worth RM 11,000
o Cash in bank RM 40,200
o Loan with Bank Muamalat RM 17,000

• 3 credit purchase
o Buy jersey from supplier on credit worth rm 3,000
o Buy hot press machine on credit from Syarikat Mesin Hatta worth RM 12,300
o Buy furniture and stationery on credit from Perabot 2020 Sdn. Bhd. Worth RM 5,300

• 2 cash purchase
o Bought a track & field equipment from Meilee Sport Supplies worth RM4,300
o Purchases good worth RM6,600 from ADIDAS (M) Sdn Bhd

• 4 credit sales
o Sold 2 unit of football shoes woth RM400 to Jamal on credit
o Sold jerseys worth RM800 on credit to Hassan
o Sold 3 pairs of Adidas socks to Cheong worth RM 80 on credit
o Rahimah bought an Adidas sports bra worth RM 280 on credit

• 2 cash sales
o Sold another jersey worth RM350 to Hasan on cash
o Sold Adidas shoes worth RM400 to Kumar by cash

• 2 purchases of non - current asset

o Buy a land and property worth RM78,000
o Buy a Trademark, Patents and Goodwill for company worth RM10,000

• 2 payments to supplier plus discount

o Make a full payment of hot press machine and get a 10% discount from Syarikat Hatta
o Got a discount from Perabot 2020 of furniture RM 300
• 2 payments by debtors plus discount
o Give a RM59 discounts to Jamal and get payment RM291
o 10% discount from RM 200 on item bought by Jihan Muse

• 4 transactions on payments of expenses

o Pay salary by cheque RM 1,100
o Pay utility bills worth RM 350
o Electrical wiring and repairs RM 170
o Bought banners and buntings for promotional purposes RM 1,000

• 2 transactions of revenue received

o Service revenue earn RM 100
o Commission revenue RM 120

• 2 transactions of non - current liabilities

o Deferred compensation from KLX Sdn. Bhd. RM 2,400
o Loan payment to Bank Muamalat RM 1,900

• Drawing of cash and goods by the owner

o Owner took RM 300 in cash and RM 300 worth of futsal equipment as part of sponsoring
a futsal tournament

• 1 transaction on sales return

o Jamal returned RM 200 worth of football shoes due to tear on the left side of the shoes

• 1 transaction on purchase return

o Return field and track equipment worth RM 500 to MeiLee Sports Suppliesafter they were
deemed unsafe to use
Date Transaction

October 2018

1 Cash in bank of RM 40,200 were taken as starting capital for the business

2 Bought a track & field equipment from Meilee Sport Supplies worth
RM 4,300
3 Bought banners and buntings for promotional purposes RM 1,000

4 Sold 2 unit of football shoes worth RM 400 to Jamal on credit

6 Buy jersey from supplier on credit worth RM 3,000

7 Loan with Bank Muamalat RM 17,000

8 One of the partner gave in a building to the business worth RM 80,000

9 Buy furniture and stationery on credit from Perabot 2020 Sdn. Bhd. Worth

RM 5,300

10 Owner took RM 300 in cash and RM 300 worth of futsal equipment as

part of sponsoring a futsal tournament

11 Sold jerseys worth RM800 on credit to Hassan

12 Buy a Trademark, Patents and Goodwill for company worth RM10,000

13 Electrical wiring and repairs RM 170

14 Return field and track equipment worth RM 500 to MeiLee Sports

Supplies after they were deemed unsafe to use

15 Sold another jersey worth RM350 to Hasan on cash

16 Deferred compensation from KLX Sdn. Bhd. RM 2,400

17 Got a discount from Perabot 2020 of furniture RM 300

18 Buy a land and property worth RM 78,000

19 Commission revenue RM 120

19 Bring in machinery worth RM 11,000

20 Purchased good worth RM 6,600 from ADIDAS (M) Sdn Bhd

21 Sold Adidas shoes worth RM400 to Kumar by cash

22 Buy hot press machine on credit from Syarikat Mesin Hatta worth

RM 12,300
23 Sold 3 pairs of Adidas socks to Cheong worth RM 80 on credit

24 Make a full payment of hot press machine and get a 10% discount from

Syarikat Hatta

24 Loan payment to Bank Muamalat RM 1,900

25 Rahimah bought an Adidas sports bra worth RM 280 on credit

26 10% discount from RM 200 on item bought by Jihan Muse

27 Service revenue earn RM 100

28 Give a RM59 discounts to Jamal and get payment RM291

29 Pay salary by cheque RM 1,100

29 Pay utility bills worth RM 350

30 Jamal returned RM 200 worth of football shoes due to tear on the left side

of the shoes