Reference no: EM132484891

Memories Forever Trading is a business selling corporate souvenirs. The following transactions took place in the month of September 2019.

1st September

The owner started the business with an initial capital of RM 100,000 cash in bank, RM 5,000 cash, RM 50,000 office furniture, RM 30,000 computer equipment. RM 30,000 renovation.

2nd September

Purchased a motor van from Lim Motors costing RM 70,000. Deposit of RM 10,000 was paid by cheque and the balance is to be paid by a hire purchase instalment plan starting from next month. Hire purchase facility is with CIMB Bank.

3rd September

Received invoices from Alim Enterprises RM 17,000 and Harry Enterprises RM 13,000 for goods purchased. Incurred a total of RM 600 as transportation cost for these purchases, paid cash for this.

3rd September

Office rental for the month is RM 1,500. The Company paid 2 months' rental deposit of RM 3,000 and RM 6,000 as advance rental via cheque.

4th September

Sold goods on credit to Zury RM 5,000 and Khairy RM 12,000.

5th September

Placed an investment via cheque amounting to RM 15,000 for purchase of shares with Pelangi Berhad.

6th September

Paid RM 500 cash for the month's electricity expense.

8th September

The owner withdrew goods worth RM 400 for personal use.

10th September

Food and refreshments for staff RM 200. Paid cash for this.

10th September

Zury returned RM 500 worth of goods, as they were defected.

15th September

Cash sales of RM 5,000

20th September

Company received a loan from bank for its business RM 100,000.

22nd September

Zury settled his account by cheque and received a cash discount of 5%.

24th September

Khairy paid RM 1,500 cheque towards his account balance.

25th September

Issued cheques of RM 10,000 being salaries for the month.

26th September

Received telephone bill for the month RM 600.

27th September

Sold goods on credit to Charles RM 5,000.

30th September

Company depreciates its assets using the straight-line method. The rate is 10% for office furniture, 20% for computer equipment, 10% for renovation and 20% for motor vehicles.

30th September

Closing inventory is valued at RM 20000

Based on the above information:

Question a) Prepare journal entries, using the General Journal, Sales Journal and Purchases Journal, Sales Returns Journal, Purchases Returns Journal.

Question b) Prepare Cash Book as at 30th September 2019.

Question c) Post the above transactions to their respective ledgers