GM501/ MBG1033/ GM530: Following transactions for the month of July 2022 pertain to Techno World Ltd: Financial Accounting and Analysis/ Business Accounting for Decision Making Assignment, Malaysia

Individual Assignment 1: General Journal Entries and Subdivision of Journals

Question 1: Following transactions for the month of July 2022 pertain to Techno World Ltd:

Opening balances:
Cash in hand = Rs. 85,000
Cash at the bank:

• As per cash book = Rs, 650,000

• As per bank statement = 780,000

Note: Techno World Ltd. use 2 columns cash book

• 2 Jul: Purchased goods on credit from Rosh computers stores for Rs. 237, 500 (2.5 percent net trade discount)

• 4 Jul: Goods sold on credit to ABC incorporation for Rs. 25,000 after the settlement of a 5 percent trade discount. The transportation charges of Rs. 75,00 were paid through cash by Techno World Limited.

• 5 Jul: Goods sold on credit to Sham brothers for Rs. 320,000 with a discount offer of 2.5 percent if the payment is made within 30 days early.

• 7 Jul: Rs. 200,000 cheques issued to Zeecom associates against the final settlement of previously due invoice of Rs. 212,500 and XYZ stores for Rs. 95000 with a 2.5 percent net payment discount.

• 9 Jul: A cheque of amount Rs. 29,500 received against goods sold by Orascom Private Ltd.

• 10 Jul: Utility bills of amount Rs. 22,500 paid in cash. This amount also included Rs. 5000 bills utilized by the owner’s residency.

• 12 Jul: Goods returned by Sham brothers of amount Rs. 67,500.

• 12 Jul: Goods returned to Rosh computers stores of amount Rs. 25000.

• 13 Jul: Goods purchased on credit from Delta mart of amount Rs. 35,000 with a 5 percent discount on early settlement within 30 days.

• 15 Jul: An amount of Rs. 50,000 cheques were withdrawn from the bank for daily operational expenses.

• 21 Jul: New computer machines were purchased of amount Rs. 122,500 in which part payment cheque of amount Rs. 50000 was issued.

• 26 Jul: Goods purchased against cash of amount Rs. 34,000 and availed 2.5 percent discount.

• 30 Jul: An amount of Rs. 142,500 cheques received from Zeal enterprises with 2.5 percent net payment discount and Zahir associates of Rs. 250,000 against the final settlement of previously due invoice of amount Rs. 275,000.

Required:

a. Enter the transactions into the General Journal format.

b. Prepare Sales book, Purchase book, Sale Return and Purchase Return.

c. Prepare Cashbook.

Answer

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