Vernon is left RM10,000 by his great aunt in his will. He puts RM4,000 into his own current account and with the remaining RM6,000 he decides to start up a business selling bags. The following are his transactions in the first month of business. 1 March Vernon pays RM6,000, into the business bank account The business buys 200 bags for RM1,600 from VRU Co and pays by cheque The business sells half the bags for RM1,200 cash to AB Videos The business buys a van for RM2,500 and pays by cheque The business buys 50 bags for RM8 each from AA Co on credit The business buys 100 bags for RM8 each from AA Co on credit 75 bags are bought on credit from B Co for RM600 50 bags are sold on credit for RM2,100 to SS Co 25 bags are sold on credit to T Co for RM350 50 bags are sold to SS Co for RM700 on credit RM300 rent is paid, in respect of March, for the business premises 2 March 5 March 10 March 11 March 12 March 12 March 14 March 14 March 17 March 17 March 19 March Paid RM900 to AA Co 20 March Received RM1,000 from SS Co 21 March Vernon pays a cheque into the business bank account from his current account for RM4,000 200 bags are bought from AA Co for RM800 credit 25 bags are bought on credit from B Co for RM200 200 bags are bought on credit from CC Co for RM1,600 Sold 25 bags on credit for RM1,350 to UEE Co Sold 100 bags for RM1,100 to W Co on credit Sold 20 bags on credit for RM260 to WD Co Vernon withdrew RM700 from the bank, paying his assistant RM400 and keeping the remaining RM300 for himself Invoices received for RM150 for electricity and RM50 for the telephone 25 March 25 March 25 March 26 March 27 March 27 March 30 March 31 March
Vernon is left RM10,000 by his great aunt in his will. He puts RM4,000 into his own current account and with the remaining RM6,000 he decides to start up a business selling bags. The following are his transactions in the first month of business. 1 March Vernon pays RM6,000, into the business bank account The business buys 200 bags for RM1,600 from VRU Co and pays by cheque The business sells half the bags for RM1,200 cash to AB Videos The business buys a van for RM2,500 and pays by cheque The business buys 50 bags for RM8 each from AA Co on credit The business buys 100 bags for RM8 each from AA Co on credit 75 bags are bought on credit from B Co for RM600 50 bags are sold on credit for RM2,100 to SS Co 25 bags are sold on credit to T Co for RM350 50 bags are sold to SS Co for RM700 on credit RM300 rent is paid, in respect of March, for the business premises 2 March 5 March 10 March 11 March 12 March 12 March 14 March 14 March 17 March 17 March 19 March Paid RM900 to AA Co 20 March Received RM1,000 from SS Co 21 March Vernon pays a cheque into the business bank account from his current account for RM4,000 200 bags are bought from AA Co for RM800 credit 25 bags are bought on credit from B Co for RM200 200 bags are bought on credit from CC Co for RM1,600 Sold 25 bags on credit for RM1,350 to UEE Co Sold 100 bags for RM1,100 to W Co on credit Sold 20 bags on credit for RM260 to WD Co Vernon withdrew RM700 from the bank, paying his assistant RM400 and keeping the remaining RM300 for himself Invoices received for RM150 for electricity and RM50 for the telephone 25 March 25 March 25 March 26 March 27 March 27 March 30 March 31 March
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
You need to prepare the following:
1. Prepare the book of prime entry
2. Prepare the ledger accounts
3. Prepare the
4. Prepare the Financial Statements (SOPL and SOFP) for the year ended 31 March 2021
Transcribed Image Text:Vernon is left RM10,000 by his great aunt in his will. He puts RM4,000 into his own current
account and with the remaining RM6,000 he decides to start up a business selling bags.
The following are his transactions in the first month of business.
1 March
Vernon pays RM6,000, into the business bank account
The business buys 200 bags for RM1,600 from VRU Co and pays by cheque
The business sells half the bags for RM1,200 cash to AB Videos
2 March
5 March
The business buys a van for RM2,500 and pays by cheque
The business buys 50 bags for RM8 each from AA Co on credit
10 March
11 March
12 March
The business buys 100 bags for RM8 each from AA Co on credit
75 bags are bought on credit from B Co for RM600
50 bags are sold on credit for RM2,100 to SS Co
25 bags are sold on credit to T Co for RM350
50 bags are sold to SS Co for RM700 on credit
12 March
14 March
14 March
17 March
RM300 rent is paid, in respect of March, for the business premises
Paid RM900 to AA Co
17 March
19 March
20 March
Received RM1,000 from SS Co
Vernon pays a cheque into the business bank account from his current account
for RM4,000
21 March
200 bags are bought from AA Co for RM800 credit
25 bags are bought on credit from B Co for RM200
200 bags are bought on credit from CC Co for RM1,600
25 March
25 March
25 March
26 March
Sold 25 bags on credit for RM1,350 to UEE Co
Sold 100 bags for RM1,100 to VV Co on credit
Sold 20 bags on credit for RM260 to WD Co
27 March
27 March
30 March
Vernon withdrew RM700 from the bank, paying his assistant RM400 and keeping
the remaining RM300 for himself
Invoices received for RM150 for electricity and RM50 for the telephone
31 March
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