Mr. Muhammad starts a plastic product trading business on 1 January 2020. Some of transactions for the month of January were as follow:

1 Jan	The owner invested RM230,000 in the bank and cash RM3,000 to start the business.
3 Jan	Paid a part-time wages RM250 with cash.
4 Jan	Received RM10,000 from Mr. Anuar as a loan through bank transfer.
11 Jan	Bought a van for RM55,000 by cheque.
14 Jan	Made RM4,800 to Ramli plastic (trade creditor) by cheque and received RM40 discount.
17 Jan	Paid petrol RM140 with cash.
20 Jan	Received full-payment RM6.300 from Tom Trading (trade debtor) through bank transfer and gave a discount allowed of RM40.
25 Jan	Bought goods RM3,500 from AXT Enterprise by cheque.

Required:

Prepare the three-column cash book for the month of January 2020 and balance it at 31 January 2020, bringing the balances down at 1 February. (10 marks)

Answer rating: 100% (QA)

Summary 1 All receipts are recorded on debit side and all payments are recor... View the full answer