The following information was obtained from the books of NChoc Sdn. Bhd., a chocolate factory for September 2020. Sept 1 Owner started business by bringing in his used van costing RM 45,000 and cash amounting to RM 12,000 into the business. 2 Deposited RM 5,000 of the cash into the bank. 3 Bought fixtures and fittings on credit from ARO I Bhd. worth RM 4,500. 4 Bought goods on credit from Suzie Ltd worth RM 3,350. 5 Paid utilities by cheque RM 500. 6 Received loan of RM 8,000 by cheque from Mayobank Berhad. 7 Sold goods on credit to Alfafa Enterprise worth RM 6,500. 8 Cash sale RM 520. 9 Paid wages by cash RM 2,100. 10 Bought office stationery by cash worth RM 170. 11 Received rent worth RM 750 by cash. 12 Sold goods by cash to Salwani Ltd worth RM470. 14 Returned some of damaged goods to Suzie Ltd amounting to RM 50 and settled amount due by cash after receiving discount of 5%. 15 Repaid part of the loan to Mayobank Berhad worth RM 3,000 by cheque. 16 Owner took out some chocolate worth RM 230 from the factory as birthday present for his son. 17 Alfafa Enterprise return some damaged goods worth RM 350 to NChoc Sdn Bhd. 18 Received cheque from Alfafa Enterprise in settlement of amount due after allowing discount of 2%. ....3/- SULIT (BFT106) -3- SULIT Required: a) Prepare the general journal.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
The following information was obtained from the books of NChoc Sdn. Bhd., a chocolate
factory for September 2020.
Sept 1 Owner started business by bringing in his used van costing RM 45,000 and cash
amounting to RM 12,000 into the business.
2 Deposited RM 5,000 of the cash into the bank.
3 Bought fixtures and fittings on credit from ARO I Bhd. worth RM 4,500.
4 Bought goods on credit from Suzie Ltd worth RM 3,350.
5 Paid utilities by cheque RM 500.
6 Received loan of RM 8,000 by cheque from Mayobank Berhad.
7 Sold goods on credit to Alfafa Enterprise worth RM 6,500.
8 Cash sale RM 520.
9 Paid wages by cash RM 2,100.
10 Bought office stationery by cash worth RM 170.
11 Received rent worth RM 750 by cash.
12 Sold goods by cash to Salwani Ltd worth RM470.
14 Returned some of damaged goods to Suzie Ltd amounting to RM 50 and settled
amount due by cash after receiving discount of 5%.
15 Repaid part of the loan to Mayobank Berhad worth RM 3,000 by cheque.
16 Owner took out some chocolate worth RM 230 from the factory as birthday
present for his son.
17 Alfafa Enterprise return some damaged goods worth RM 350 to NChoc Sdn Bhd.
18 Received cheque from Alfafa Enterprise in settlement of amount due after
allowing discount of 2%.
....3/-
SULIT
(BFT106)
-3-
SULIT
Required:
a) Prepare the general journal.
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