1. Tutorial 4: Books of Original Entry
Question 1
Larry, a stationer, had the following transactions for the month of July. Journalise these
transactions and post the entries to their appropriate ledger accounts.
Jul 2 Larry drew out goods worth RM50 for private use.
17 Larry brought into his business an old van valued at RM3,000.
26 Larry bought furniture for office use from Ideal Furniture Co on credit, value was
RM300.
29 Stationery costing RM68 was taken from business stock for office use.
Question 2
Dr. Fared has been practicing as a cardiologist for three years. During April, Dr. Fared
completed the following transactions in his practice of cardiology:
Apr 1 Paid office rent by cheque for April, RM800.
3 Purchased equipment on account, RM2,100.
5 Received cash from patients on account, RM3,150.
8 Purchased X-ray film and other supplies on account, RM245.
12 Paid cash to creditors on account, RM1,250.
17 Paid cash for renewal of a six-month property insurance policy, RM370.
20 Paid cash for laboratory analysis, RM545.
24 Paid cash from business bank account for personal and family expenses, RM1,250.
27 Received professional fees from patients, RM1,720
30 Paid salaries of receptionist and nurses, RM1,725.
30 Paid various utility expenses, RM360.
30 Fees charged to patients on account for services performed in April, RM5,145
Journalise the above transactions in a general journal.
Question 3
Below is an extract from the Cash Book of Raj, a sole trader:
Dr Cash Book Cr
Date Particulars Dis Cash Bank Date Particulars Dis Cash Bank
2005 RM RM RM 2005 RM RM RM
Sep 3 Peter 50 950 Sep 6 B. Lum 50 4,950
Answer the following questions on the Cash Book shown above.
(a) (i) What is the relationship between Raj and Peter?
(ii) How much does Peter owe Raj?
(iii) What is the rate of cash discount given by Raj to Peter?
(iv) Why did Raj give Peter a discount?
(b) (i) Suggest a reason why Raj paid B. Lum.
(ii) Name the discount that is recorded alongside B.Lum.
(iii) How is the discount different from the discount given to Peter?
(c) Post the above entries in the Cash Book to the respective ledgers.
(d) Post the discount to the relevant accounts in the ledger.