Vernon is left RM10,000 by his great aunt in his will. He puts RM4,000 into his own current
account and with the remaining RM6,000 he decides to start up a business selling bags.
The following are his transactions in the first month of business
Vernon pays RM6,000, into the business bank account
The business buys 200 bags for RM1,600 from VRU Co and pays by cheque
The business sells half the bags for RM1,200 cash to AB Videos
The business buys a van for RM2,500 and pays by cheque The business buys 50 bags for RM8 each from AA Co on credit
The business buys 100 bags for RM8 each from AA Co on credit
75 bags are bought on credit from B Co for RM600
50 bags are sold on credit for RM2,100 to SS Co
25 bags are sold on credit to T Co for RM350
50 bags are sold to SS Co for RM700 on credit RM300 rent is paid, in respect of March, for the business premises Paid RM900 to AA Co
Received RM1,000 from SS Co Vernon pays a cheque into the business bank account from his current account
for RM4,000
200 bags are bought from AA Co for RM800 credit
25 bags are bought on credit from B Co for RM200
200 bags are bought on credit from CC Co for RM1,600 Sold 25 bags on credit for RM1,350 to UEE Co
Sold 100 bags for RM1,100 to WV Co on credit
Sold 20 bags on credit for RM260 to WD Co Vernon withdrew RM700 from the bank, paying his assistant RM400 and keeping
the remaining RM300 for himself
Invoices received for RM150 for electricity and RM50 for the telephone
Required:
1. Prepare the book of prime entry
2. Prepare the ledger accounts
3. Prepare the trial balance as at 30 March 2021
4. Prepare the Financial Statements (SOPL and SOP) for the year ended 31 March 2021