1.2.Bank Muamalat entered into Ijarah muntahiya bittamleek with Ali & Co. to finance the purchase offactory machinery of RM400,000.Ali & Co to pay deposit of 10% from the cost of the machine. 10% x400k = 40,000Rental payment is 50k every 6 months or one-year RM100k.The bank will transfer the ownership to Ali for RM20,000. Salvage value of the machine is RM50,000Every year expenses: RM10,000 for gasfuel.Takaful is RM3,000, RM3,000, RM4,000, RM6,000 and RM3,000 for year 1,2,3,4,5 respectively.In the early part of year 5, the machine broke down for 6 month, and had to be repaired at RM25,000Bank Muamalat had to pay legal expense of RM10,000.Required:Prepare the journal entries for the above transaction in Bank Muamalat records.Show the extract balance sheet and profit and loss account at the end of every year.

S. NoParticularDebitCredit1Cash400,000Loans Payable400,0002Machinery400,000Cash40,000Account…

Answered: Prepare the journal entries for the…

Prepare the journal entries for the above transaction in Bank Muamalat records. Show the extract balance sheet and profit and loss account at the end of every year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The book balance in the checking account of Kyri Enterprises as of November 30 is $2,944. The bank…

Q: Your client has requested that you assist them in setting up their accounting system and asks that…

A: Answer:- Accounting system:- An accounting system is a collection of accounting processes that have…

Q: Accompanying a bank statement for Marsh Land Properties is a credit memo for payment on a $15,000…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: vice Charges 5.00 ceivable ng Expense 27.00 2,000.00 27.00

A: A bank Reconcilation statement summarizes the transactions of the cash statement as per the bank and…

Q: Suppose there was a third transfer on the interbank transfer schedule for $16,500. Assume that the…

A: The possible concern that I would have for this transfer is regarding on the possible reason as to…

Q: Luis wants to enter income directly into the bank register. Where will he find the register?…

A: In accounting, a bank register is a record of bank transactions, usually in chronological order. It…

Q: In reconciling a bank statement, when a check from the previous month appears on the bank statement…

A: A Bank Reconciliation Statement is a statement prepared on a particular day to reconcile the Bank…

Q: a. Calculate the correct closing balance of the bank account in the general ledger of Pepper Traders…

A: In accounting for business and non business in both areas banks play vital role as…

Q: On March 31 of the current year, Fresh Flowers received a bank statement dated March 30. Prepare a…

A: A bank reconciliation statement is a summary of banking and business activity that reconciles an…

Q: At the end of the month of July you close the books of your company and received the bank statement.…

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

Q: Prepare any necessary journal entries based on the following data regarding the bank reconciliation…

A: Journal entries, in the books of an entity, are recorded to prepare a daily report of the…

Q: Accompanying a bank statement for Borden Company is a credit memo for $21,200 representing the…

A: Cash received = $21,200 Note face value = $20,000 Interest = $1,200

Q: estion list Question 5 Data table Beginning Balance Deposits and other Credits: Dec. 1 Dec 5 Dec. 10…

A: Note/Definition: Bank reconciliation statement is the statement prepared by company on a particular…

Q: Balance July 31 Deposits Cheques Note collected Bank service charge NSF cheque Interest received…

A: Solution : On a bank reconciliation, the adjustments on book side are adjusted in the books.…

Q: Accompanying a bank statement for Santee Company is a credit memo for $15,120 representing the…

A: In this question, As the amount is received so cash will be debited with the amount received $15,120…

Q: Which of the following responses to an accounts receivable confirmation at December 31

Q: The accounting records and bank statement of Jeff's Seashell Store provide the following information…

A: The question is based on the concept of the Bank Reconciliation Statement. A bank reconciliation…

Q: Infinity Emporium Company received the monthly statement for its bank account, showing a balance of…

A: The objective of this question is to prepare a bank reconciliation statement for Infinity Emporium…

Q: You have been provided with the following information from the books of Zebra Traders: Information…

A: A bank reconciliation statement refers to the statement that matches the balance as per the bank…

Q: Opening Book balance of: $12,423.21 Balance on the June 30th bank statement: $17,743.96 SES pays…

A: Bank Reconciliation statement is prepared to reconcile the book and the bank balance due to the…

Q: When a drawee bank certifies a check, it charges the drawer's account with the amount of the check…

A: The drawer account from the banking perspective is an account that involves either an individual or…

Q: Now, with Jacques’s latest bank statement and his check register or ledger in hand, you can examine…

A: A bank reconciliation statement is a generous and commonly used accounting feature which is used to…

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

1.
2.
Bank Muamalat entered into Ijarah muntahiya bittamleek with Ali & Co. to finance the purchase of
factory machinery of RM400,000.
Ali & Co to pay deposit of 10% from the cost of the machine. 10% x400k = 40,000
Rental payment is 50k every 6 months or one-year RM100k.
The bank will transfer the ownership to Ali for RM20,000. Salvage value of the machine is RM50,000
Every year expenses: RM10,000 for gas
fuel.
Takaful is RM3,000, RM3,000, RM4,000, RM6,000 and RM3,000 for year 1,2,3,4,5 respectively.
In the early part of year 5, the machine broke down for 6 month, and had to be repaired at RM25,000
Bank Muamalat had to pay legal expense of RM10,000.
Required:
Prepare the journal entries for the above transaction in Bank Muamalat records.
Show the extract balance sheet and profit and loss account at the end of every year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Journal entries for the above transaction in Bank Muamalat records:

VIEW

Step 2: Extract of Profit and loss Account

VIEW

Step 3: Extract of Balance Sheet

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

explain why it is important for a business to do a bank reconciliation monthly.
prepare a bank reconciliation report.
Use the following bank statement and T-account to prepare any journal entries needed as a result of the May 31 bank recor no entry Is requlred for a transactlon/event, select "No Journal Entry Requlred" In the first account fleld.) BANK STATEMENT
The LLYOD bank statement for the month of June shows that there is $13,300 difference with the cash balance per book. The difference occurs on the 12 of June as one of the customers’ outstanding check has been returned because of not sufficient fund. Record the required entries at the end of June.
Assume that the employees are paid from the company's regular bank account check numbers 981 and 982 prepare the entry to record and pay the payroll in general journal from September 30th if required round amounts to the nearest cent if an amount does not require an entry leave it blank. College accounting 13th edition
B. Record the entry for acceptance of promissory note in exchange of accounts receivable from McCormick Industries. C. Record the entry for interest accrued on promissory note received from McCormick Industries. D. Record the entry for interest received , from McCormick Industries , on the note's maturity date. E. Record the entry for payment received from McCormick Industries the principal on the note's maturity date.
Accompanying a bank statement for Santee Company is a credit memo for $24,516 representing the principal ($22,700) and interest ($1,816) on a note that had been collected by the bank. The company had been notified by the bank at the time of the collection but had made no entries. Required: On March 1, journalize the entry that should be made by the company to bring the accounting records up to date. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.