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Instructions: Answer ALL Questions. Notes: Convert File To PDF and Rename File As Name - Tutorial 3

1) Creative Advertising received various contributions, took out a loan, paid expenses, billed clients and received payments in January 2020. 2) Shah Garden Center purchased inventory on credit, sold inventory on credit, paid suppliers, returned defective inventory, received payment and had inventory lost to fire in October 2020. 3) ABC Ltd recorded various owner investments, borrowing, purchases, expenses and revenue transactions between June 2-30, 2018 to prepare its trial balance. 4) Ahmed Bajwa Interior Decorators recorded starting balances, purchases, billings, payments received and expenses between March 2-30, 2008 to prepare its trial balance.

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82 views

Instructions: Answer ALL Questions. Notes: Convert File To PDF and Rename File As Name - Tutorial 3

1) Creative Advertising received various contributions, took out a loan, paid expenses, billed clients and received payments in January 2020. 2) Shah Garden Center purchased inventory on credit, sold inventory on credit, paid suppliers, returned defective inventory, received payment and had inventory lost to fire in October 2020. 3) ABC Ltd recorded various owner investments, borrowing, purchases, expenses and revenue transactions between June 2-30, 2018 to prepare its trial balance. 4) Ahmed Bajwa Interior Decorators recorded starting balances, purchases, billings, payments received and expenses between March 2-30, 2008 to prepare its trial balance.

Uploaded by

rinnisha
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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BASIC ACCOUNTING TUTORIAL 3

NAME

ID NUMBER

PROGRAM

BATCH

Instructions: Answer ALL questions.

NOTES: CONVERT FILE TO PDF AND RENAME FILE AS NAME_TUTORIAL 3

QUESTION 1

Creative Advertising, owned by Miss Abida Masood, provides advertising consulting services.
During January 2020, the following events occurred:

Date Transactions
Owner contributed RM50,000 and a new computer costing RM20,500 to start her
Jan. 2
business.
4 Office supplies were purchased on account for RM4,000.

10 Creative Advertising obtained 12% 5-year loan of RM20,000 from the bank

12 Creative Advertising paid the utility bills for RM2,750.

15 Paid the RM3,000 in Accounts Payable from the purchase of office supplies on
Jan. 4.

24 Advertising services completed in January were billed to clients Annies’ Flowers


at RM18,300.

27 Creative Advertising received RM5,500 from Annies’ Flowers, a client, as


payment on account.

30 Miss Abida Masood withdrew RM6,000 of cash for personal use.

Requirement: You are required to pass Journal Entry, post to appropriate general
ledger account and make a trial balance?
BASIC ACCOUNTING TUTORIAL 3

QUESTION 2

Shah Garden Center is retail garden supplier. Record the transactions needed to journalize,
post to respective ledger account and prepare Trial Balance of the following for October, 2020
of the current year:

Date Transactions
Purchased inventory on credit terms of 1/10 net 30. FOB shipping point, for
Oct. 2
RM3,000. Freight charges on the purchase were RM150.
9 Sold garden supplies on credit terms 3/20 net 30, FOB shipping point, for
RM4,000. The cost of the supplies sold was RM2,500.

10 paid the amount owed on account for the Oct. 2 inventory purchase.

15 Received merchandise that was returned as defective, originally sold for RM500
on Oct. 9. The original cost of the supplies returned was RM275.

25 received payment on account for the Oct. 9 sale less the appropriate sales
discount.

28 Inventory lost by fire of cost RM350.

QUESTION 3

Post transactions to appropriate T-account & make Trial Balance for ABC Ltd as on June 30th,
2018:

Date Transactions

June 2 Owner investment in Cash RM10,000

5 Borrowing RM1,000 from a local bank on a Note due in three months

10 Purchase Equipment of RM500, paid RM100 Cash and promising the rest on a
Note Payable

12 Paid RM150 for Stationery

17 Lent RM200 to an employee who signed a Note promising to repay within 60


days

21 Service Revenue received during the period is RM5,800

23 Paid Insurance for three year at start of this accounting period RM1,800

26 Service Revenue of worth RM1,200 earned but not received

28 Insurances expired recorded as Insurance Expense of RM600

30 Personal withdrawal of owner of RM700


BASIC ACCOUNTING TUTORIAL 3

QUESTION 4

Post transactions to appropriate T-account & make Trial Balance with Totals and Trial Balance
with Balances and Totals for ABC Ltd as on March 30th, 2018:

Ahmed Bajwa, an interior decorator, completed the following transactions during the month of
March 2008.

Date Transactions

March 2 Begun his business with Equipment valued at RM80,000 and placed Cash
RM100,000 in a business Bank Account.

5 Purchase a used Motor Car costing RM50,000 and paid by check.

10 Completed painting a two-story house and billed the customer, RM24,800


(Account Receivable Dr).

12 Received cash for painting two rooms, RM5,000. It was kept in cash till.

17 Hired assistant to work with him, to be paid RM100 per day.

21 Purchase supplies for RM14,600 and paid by check.

26 Paid assistant for six days work, RM600 in Cash.

28 Received cheque for painting five room apartment RM33,600 and check is not
deposited.

30 Transfer RM2,000 to Business Bank Account.

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