Question

Question 3 The following are the transactions of Lim Trading in May: 1 Start a business with Cash in hand RM800 and Cash at bank RM1,000 2 Purchased goods by cheque RM400 2 Paid rates to Dewan Bandaraya Kuala Lumpur by cheque RM40 4 Bought goods on credit from Qin Co RM200 8 Sold goods to Tali on credit RM300 9 Cash sales RM80 10 Paid transport by cash RM12 13 Credit sales to Tali RM300 14 Paid for stationery in cash RM16 15 Introduced further capital RM1,000 by cheque 16 Tali paid for the amount owing by cheque, less 5% discount (calculate the amount) 20 Withdrew cash for own use RM120 24 Purchased goods with office cash RM28 25 Paid Qin Co a cheque in full settlement of the amount owing, less 5% discount (calculate the amount) 26 Sold goods on credit to Tali RM450 28 Paid transport by cash RM10 30 Transferred cash from office to bank RM400 30 Credit purchase from Qin Co RM300 31 Refund cash to Tali for returning empty containers for recycling RM5 31 Bought office furniture, paid by cheque RM200 31 Paid Sam a cheque in settlement of outstanding invoice of RM700 and deducting RM35 cash discount 31 Receive a cheque from Ken RM475 after deducting RM25 cash discount. Required: (a) Enter the above transactions in a three-column Cash Book and close the Cash Book at the end of May (ignore those transactions that do not involve the Cash Book). [22 marks] (b) Post to the discount accounts in the general ledger. [3 marks] [Total: 25 marks]