DATE 2024 JAN 1 JAN 2 JAN 4 JAN 5 JAN 7 JAN 10 JAN 11 JAN 12 JAN 14 JAN 16 JAN 17 JAN 18 JAN 19 JAN 20 TRANSACTIONS The KEETA started their own business with cash RM50,000 from their savings and deposited the money into business bank account. Acquired a printing machine amounted RM5,000 on credit from Bell Sdn Bhd Purchases goods from Rara Queen worth RM 10,000 on credit. Purchase goods from NaBib enterprise RM2000 on credit. Issued an Invoice to Syaf of 20 units of goods amounted RM200 on credit Credit sales worth RM4,000 to Ainnur Receive a loan cheque for RM5000 from Maybank Owner draw 20 units of goods amounting RM200 for personal use Paid utilities bill amounted RM1000 and rental amounted RM1500 by cash Bought a furniture for boutique worth RM8,000 from Dini Enterprise by cash Sold goods to Aina amounted RM1,200 on cash Purchase goods RM500 on cash from Supplier Z Purchase return to Rara Queen RM1000 due to damage item Sent invoice to Danish RM800 on credit sales
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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