Question 3 Squid Company which is owned by Mr. Squid, started a business on 1 March...

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Question 3 Squid Company which is owned by Mr. Squid, started a business on 1 March 2021 with cash in hand of RM35,000; cash at bank RM300,000, and machinery valued at RM125,000. During the month, the folowing transactions occurred: March Transactions Purchased a set of computers worth RM7,800 from Fish Computers and paid 20% cash and agreed to pay the balances within the credit term of 20 days. Purchased goods amounting to RM7,200 from Crab Company by cash and on credit from Shrimp Enterprise for RM23,000. Crab Company gave a 10% discount on goods purchased by cash. 8 Retumed defective goods to Shrimp Enterprise worth RM780. 9. Cash sales to Lobster Sdn. Bhd. for RM5,600 and credit sales to Oyster Trading for RM34,670. Received cash amounting to RM5,120 due to sales of unused machinery. Oyster Trading retumed goods worth RM670 as they were not of good quality. Bought office fumiture worth RM4,150 and paid by cheque. 11 12 14 22 Paid Fish Computers the balance of amounts owing to them by cheque. Paid salaries for the month by cash RM8,700. Settled full amount to Shrimp Enterprise and on the same day received a settlement from Oyster Trading. All transactions are by cheque. Mr. Squid took inventory items and gave them to his brother as a wedding gift worth RM3,900. Mr. Squid contributed additional capital to the company amounted to RM25,000 25 27 28 29 cash. Required: a) Record the above transactions in the appropriate jourmals. (10 marks) b) Record the above transactions in the necessary ledger accounts. Close and balance all the ledgers. (15 marks) c) Transfer the balance of your ledger accounts in (b) into the Trial Balance as at 31 March 2021 for Squid Company. (10 marks) Question 3 Squid Company which is owned by Mr. Squid, started a business on 1 March 2021 with cash in hand of RM35,000; cash at bank RM300,000, and machinery valued at RM125,000. During the month, the folowing transactions occurred: March Transactions Purchased a set of computers worth RM7,800 from Fish Computers and paid 20% cash and agreed to pay the balances within the credit term of 20 days. Purchased goods amounting to RM7,200 from Crab Company by cash and on credit from Shrimp Enterprise for RM23,000. Crab Company gave a 10% discount on goods purchased by cash. 8 Retumed defective goods to Shrimp Enterprise worth RM780. 9. Cash sales to Lobster Sdn. Bhd. for RM5,600 and credit sales to Oyster Trading for RM34,670. Received cash amounting to RM5,120 due to sales of unused machinery. Oyster Trading retumed goods worth RM670 as they were not of good quality. Bought office fumiture worth RM4,150 and paid by cheque. 11 12 14 22 Paid Fish Computers the balance of amounts owing to them by cheque. Paid salaries for the month by cash RM8,700. Settled full amount to Shrimp Enterprise and on the same day received a settlement from Oyster Trading. All transactions are by cheque. Mr. Squid took inventory items and gave them to his brother as a wedding gift worth RM3,900. Mr. Squid contributed additional capital to the company amounted to RM25,000 25 27 28 29 cash. Required: a) Record the above transactions in the appropriate jourmals. (10 marks) b) Record the above transactions in the necessary ledger accounts. Close and balance all the ledgers. (15 marks) c) Transfer the balance of your ledger accounts in (b) into the Trial Balance as at 31 March 2021 for Squid Company. (10 marks)

Answer rating: 100% (QA)

Answer to Point No a Date Particulars Amount in RM Dr Amount in RM Dr 1st March 2021 Cash Ac Dr 35000 Bank Ac Dr 300000 Machinery Ac Dr 125000 To Capital Ac 460000 Being business started 3rd March 202... View the full answer