Question

1)

3 BBM205/03 Answer ALL questions below. Question 1 Below was the transactions worksheet of Selna Enterprise on April 1, 2020. + ASSETS Cash + + Account Receivables 3,600 Prepaid expenses 1,000 Supplies on hand 350 EQUITY Share capital 7,350 Retained earnings LIABILITY Account payable 4,400 2,000 The following transactions occurred during April: April 1 Collected RM2,000 cash in satisfaction of an amount owed by a customer. April 3 Billed RM3,000 to customers for chairs rented to date. April 4 Paid the following expenses: advertising, RM300; salaries, RM2,000; telephone, RM100 April 6 Paid half of the accounts payable, April 9 Received a RM500 bill for April truck operating expenses. April 15 Collected RM2,500 in satisfaction of an amount owed by a customer. April 16 Billed RM1,500 to customers for chairs rented to date. April 16 Transferred RM500 of prepaid expenses to rent expense. April 25 Issued additional share capital and received RM10,000 cash. April 30 Counted RM200 of supplies still on hand (recorded the amount used as an expense)

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Answer 1

a)	Journal entries
Date	Particular	Debit	Credit
Apr-01	Cash A/C	2000
	To Account receivable		2000
	(being amount received by customer)
Apr-03	Accounts receivable A/c	3000
	To Chair rent		3000
	(being amount billed to customer for
	chairs rented )
Apr-04	Advertisment expenses A/C	300
	Salaries Expenses A/C	2000
	Telephone expenses A/C	100
	To cash A/C		2400
	(being advertising, salary , telephone
	expenses paid )
Apr-06	Accounts payable A/c	1000
	To cash A/C (2000/2)		1000
	( being half of accounts payable paid )
Apr-09	Truck operating expenses A/C	500
	To Account payable		500
	( being bill for truck operating expenses
	received )
Apr-15	Cash A/C	2500
	To Account receivable		2500
	(being amount received by customer)
Apr-16	Accounts receivable A/c	1500
	To Chair rent		1500
	(being amount billed to customer for
	chairs rented )
Apr-16	Rent expenses A/C	500
	To prepaid expenses		500
	(being amount transferred from prepaid
	expenses to rent expenses )
Apr-25	Cash A/C	10000
	To Share capital		10000
	( being share capital issued for cash )
Apr-30	Supplies expenses A/C	150
	To Supplies (350-200)		150
	(being supplies expenses incurred )

b)				Transaction worksheet
				on 30th APRIL 2020
	ASSETS					LIABILITY   +	EQUITY
	Cash     +	Accounts	Prepaid	Supplies	=	Account	Share	Retained
		Receivable +	expenses   +	on hand		payable +	capital   +	earning
Opening	4400	3600	1000	350		2000	7350
Apr-01	2000	-2000
Apr-03		3000						3000
Apr-04	-300							-300
	-2000							-2000
	-100							-100
Apr-06	-1000					-1000
Apr-09						500		-500
Apr-15	2500	-2500
Apr-16		1500						1500
Apr-16			-500					-500
Apr-25	10000						10000
Apr-30				-150				-150
Total	15500	3600	500	200	=	1500	17350	950

Answer 2

Question 3 

Jet is owner of Jet Cafe. At the end of each month, Jet prepares a bank reconciliation statement for his business bank account. At 31 December 2019 his ledger balance was RM1,869 (credit) and his bank statement showed that he had funds of RM210 at the bank He has the following information: (0) Jet has arranged for RM1,800 to be transferred from his personal bank account into the business bank account. The bank made the transfer on 30 December, but Jet has not made any entry for it in his records. (ii) On 21 December, Jet withdrew RM300 cash which he did not record. (ili) Cheque number 202018, which Jet issued to a supplier, appears on the bank statement as RM550. Jet incorrectly recorded the cheque as RM560. (iv) The bank debited Jet's account with charges of RM200 during December. Jet has not recorded these charges. () On 31 December, Jet lodged RM450. On the bank statement, this amount is dated 3 January 2020. (vi) Jet was advised by the bank that he earned RM62 interest for the period in December that his account was in credit. Jet recorded this in December, but the bank did not credit his account until January 2020. (vii) Three of the cheques issued in December, with a total value of RM1,005, were not debited on the bank statement until after 31 December. (vii) A cheque for RM276, issued to a supplier, was cancelled but Jet has not recorded the cancellation of the cheque.

Required: Show the bank account in Jet's general ledger, including any adjusting entries required due to the information given in points (i) to (vii). Note: You MUST present your answer in a format which clearly indicates whether each entry is a debit or a credit [8 marks) (b) Prepare a reconciliation of the bank statement balance to the corrected balance on the bank account in Jet's general ledger. (5 marks] (c) Indicate how the bank balance will be reported in Jet's final accounts and the amount to be reported [2 marks]