Assignment1 question 010313-121000
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This document contains instructions for two assignments for a course. It states that there are only two assignments, each worth 20 marks. It provides the due dates for Assignment 1 as March 18 and Assignment 2 as April 8. It then provides the questions for Assignment 1, which involves examining a trial balance and answering multiple questions about accounting terms and classifications. It asks the student to record transactions in ledger accounts and prepare a trial balance for Assignment 2. Both assignments require accounting knowledge and skills to analyze financial information and journalize transactions.
Assignment1 question 010313-121000
- 1. THERE ARE ONLY 2 ASSIGNMENTS FOR THIS COURSE EACH ASSIGNMENT WILL GIVE YOU 20 MARKS. ASSIGNMENT 1 : due 18 march ASSIGNMENT 2 : due 8 april
- 2. ASSIGNMENT 1 (20%) Question 1 Examine the Trial Balance of Encik Nobita as at 31 January 2012 and answer the following questions: Debit RM Credit RM Motor vehicles 30,000 Office equipment 12,000 Inventory 39,000 Cash 3,455 Bank 7,900 Sizuka 5,545 Sin Chan 6,800 Capital 60,000 Drawings 3,000 Rent 8,000 Discount 500 Commission 4,800 Purchases 68,000 Sales 90,000 Returns 1,000 170,000 170,000 a. Why does the total of the debits equal the total of the credits? b. Name the debtor and the creditor of Encik Nobita.
- 3. c. What does “Bank” on the credit side of the Trial Balance indicate? d. Is it possible for the Cash Account to have a credit balance? Explain your answer. e. Is “Discount” referring to discount received or discount allowed? If this amount is erroneously recorded as a debit balance in the account, what will be the effects on the totals of the Trial Balance? f. Is “Return” referring to return outwards or return inwards? If this amount is wrongly credited instead of debited, what will be the effects on the totals of the Trial Balance? g. Is “Commission” a revenue or an expense? h. Assuming there is no additional capital, is “Capital” on the credit side referring to capital on 1 January or 31 January 2012? i. How will you calculate the capital on 31 January? j. With reference to the Trial Balance above, is the entity a service enterprise or a trading enterprise? Give your reasons. k. Classify the accounts in the Trial Balance above into assets, liabilities, owner’s equity, revenues and expenses. Question 2 Encik Ultraman is a retailer selling household goods as well as a supplier to some nearby food stalls. On 1st July 2012, he has the following assets and liabilities: RM Motor vehicles 25,000 Fittings and fixtures 10,000 Cash in hand 1,250 Cash at bank 12,500 Debtor: Delicious Food Stall 2,300 Creditor: Big Supplier 6,500 The following transactions took place in the month of July: RM July 1 Paid rent by cheque 1,00 0 4 Paid Big Supplier RM2,300 in full settlement of account of RM2,350 by cheque. 5 Cash sales banked in 1,24 5
- 4. 7 Bought goods on credit from Big Supplier 2,40 0 10 Returned goods to Big Supplier 12 0 11 Paid electricity bill in cash 20 0 12 Withdrew goods for personel use 30 0 14 Sold goods to Delicious Food Stall on credit 85 0 16 Received cheque from Delicious Food Stall for RM2,150 in full settlement of his account on 1 July. 18 Delicious Food Stall returned defective goods 10 0 20 Cash sales banked in 3,50 0 22 Purchased goods paid by cheque 1,86 0 23 Bought air conditioner paid by cheque 3,00 0 25 Paid general expenses in cash 45 0 27 Withdrew cash from bank for office use 1,50 0 28 Paid wages in cash 1,80 0 29 Paid insurance by cheque 65 0 30 Paid owner's membership subsciption through business bank account 30 0 31 Cash sales banked in 1,60 0 You are required to: a. Record the above transactions in the appropriate accounts in the Ledger for the month of July; b. Prepare a Trial Balance as at 31 July 2012.
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