TOPIC 4

PRINCIPLES OF DOUBLE ENTRY AND TRIAL BALANCE

Principles of Double Entry

1. Answer:

Oct Effects Double Entry

Transactions
2018 Increase Decrease Debit Credit
1 Mrs Rani, the owner invested Asset Cash Capital
cash into the business Capital
amounting RM30,000
7 Purchased goods worth RM Expense Purchase Acc. Payable:
8,000 on credit from ProDiet Liability ProDiet
Trading. Trading
16 Sold RM 5,000 goods to Revenue AR: Sales
Muezza Cat House on credit. Asset Muezza
Cat House
22 Defective goods amounting to Revenue Return AR: Muezza
RM 800 were returned by Asset inwards Cat House
Muezza Cat House.
28 Paid salaries to staff by cash Expense Asset Salaries Cash
RM 3000. Expenses

2. Answer:

Dec Effects Double Entry

Transactions
2018 Increase Decrease Debit Credit
1 The owner brought in a cash Asset Cash Capital
RM 70 000 into the business. Capital
3 Purchased goods of RM 8 500 Expense Purchase Acc. Payable:
from Saloma Bhd on credit. Liability Saloma
11 Sold goods on credit to Mazna Revenue Acc. Sales
RM 1 500. Asset Receivable
: Mazna
14 Business returned goods RM Expense Acc. Return
500 due to damage to Saloma Liability Payable: Outward
Bhd. Saloma
20 Pay electricity for the shop by Expense Asset Electricity Cash
cash RM 550. Expense

27
3. Answer:

Apri Transactions Effects Double Entry

l Increase Decrease Debit Credit
2018
1 The owner of the business Asset Cash Capital
invested additional capital Capital
RM50,000 cash into a
business.
3 Purchased 10 pairs of Expense Purchase Ac/Payable
shoes at a price of RM100 Liability Vern Trading
per pair from Vern Trading
on credit.
7 Sold 5 pairs of shoes at a Asset Ac/Receivable Sales
price of RM150 per pair to Revenue Sarah
Sarah on credit.
9 Returned back 1 pair of Expense Ac/Payable Return
shoes wrongly sent by Liability Vern Trading Outward
Vern Trading.
11 Purchased a new Asset Asset Computer Cash
computer for a business
RM5,000 by cash.

4. Answer:

Sept Transactions Effect of transaction Accounts to be

Increase Decrease Debit Credit
1 Encik Kassim started Asset Cash Loan
business with cash Asset Premises Capital
RM10,000; premises Liability
RM25,000 and loan Capital
RM15,000.
8 Sold goods worth Revenue AR ± Sales
RM2,500 to Sri Mersing Asset SriMersing
on credit.
16 Sri Mersing returned Revenue Return AR ±
goods worth RM250. Asset inwards SriMersing
20 Cash discount given to Sri Expense Asset Discount AR ±
MersingRM285. allowed SriMersing
22 Received cheque from Sri Asset Asset Bank AR ±
Mersing for the amount SriMersing
due.
25 Paid RM50 cash for Expense Asset Carriage Cash
transporting goods for outwards
sale.
 27 Purchased a photostat Asset Office Capital
machine which costs Capital equipment
RM24,000 from Arau
Enterprise for office use.
Kassim paid for the
machine using his
personal cheque.
30 Withdrew cash RM200 Drawings Asset Drawing Cash
and goodsRM100. Expenses Purchases

5. Answer:

Date Transactions Effects Journal entry

Aug Increase Decrease Debit Credit
6 Purchased goods worth Expenses Purchases AP-MM
RM10,000 on credit from Liability Plantation
MM Plantation Trading. Trading
12 Purchased a Delivery Asset Delivery van AP - Hazel
Van worth RM140,000 Liability Sdn Bhd
for packing purpose on
credit from Hazel Sdn
Bhd.
15 Sold RM5,000 goods to Revenue AR - Kareem Sales
a small retailer, Kareem Asset Supplier
Supplier Enterprise on Enterprise
credit.
20 Pay utility bills for Expenses Asset Utility Bank
RM2,500 by cheque.
21 Defective goods Revenue Return AR - Kareem
amounting to RM600 Asset inwards Supplier
were returned by Enterprise
Kareem Supplier
Enterprise.
25 Issued cheque to MM Asset AP-MM Bank
Plantation Trading as full Liability Plantation
settlement for the Trading
amount due.
28 Owner took goods Drawings Asset Drawings Cash
RM800 and cash Expenses Purchases
RM1,200 for personal
use.
6. Answer:

Aug Transactions Effects Journal entry

Increase Decrease Debit Credit
1 Injected cash into the Asset Cash Capital
business amounting Capital
RM100,000.
5 Deposited RM45,000 of the Asset Asset Bank Cash
FDVKLQWRWKHEXVLQHVV¶V
bank account.
6 Bought goods worth Expenses Purchases AP ± Zakuan
RM20,000 on credit from Liability Trading
Zakuan Trading.
9 Owner brought motor van Asset Motor Van Capital
into the business worth Capital
RM45,000.
10 Owner of the business took Drawings Expenses Drawing Purchases
goods worth RM600 as
birthday present to his wife.
18 Sold goods on credit to Asset AR - Sales
Emillia for RM2,000. Revenue Emilia
22 Received cheque Asset Bank Loan
RM200,000 for MARA loan. Liability
26 Paid utility bills for RM300 Expenses Asset Utility Cash
by cash.
28 Paid Zakuan Trading Liability AP ± Bank
RM20,000 by cheque in full Asset Zakuan
settlement of the amount Trading
due to him.
28 Defected goods amounting Revenue Return AR - Emilia
RM150 were returned by Asset Inwards
Emillia into the business.

30
 Ledger

7. Answer:
a)

Capital
Bal c/f (SOFP) 122,000 Cash 80,000
Motor Van 42,000
122,000 122,000
Bal b/f (SOFP) 122,000
Cash
Capital 80,000 Bank 50,000
Sales 1,500 Purchases 12,000
Bal c/f (SOFP) 19,500
81,500 81,500
Bal b/f (SOFP) 19,500
Bank
Cash 50,000 Salaries 3,200
Bal c/f (SOFP) 46,800
50,000 50,000
Bal b/f (SOFP) 46,800
 Furniture

AP-Sabila Furniture 10,000 Bal c/f (SOFP) 10,000

10,000 10,000
Bal b/f (SOFP) 10,000
AC Payable ± Sabila Furniture
Bal c/f (SOFP) 10,000 Furniture 10,000
10,000 10,000
Bal b/f (SOFP) 10,000
Purchases
Cash 12,000 Drawings 200
Bal c/f (SOPL) 11,800
12,000 12,000
Bal b/f (SOPL) 11,800
Motor Van
Capital 42,000 Bal c/f (SOFP) 42,000
42,000 42,000
Bal b/f (SOFP) 42,000
Drawings
Purchases 200 Bal c/f (SOFP) 200
200 200
Bal b/f (SOFP) 200
Sales
Bal c/f (SOPL) 2,900 Cash 1,500
AR-Rida 1,400
2,900 2,900
Bal b/f (SOPL) 2,900
AC Receivable - Rida
Sales 1,400 Return Inward 380
Bal c/f (SOFP) 1,020
1,400 1,400
Bal b/f (SOFP) 1,020

Return Inward
AC Receivable - Rida 380 Bal c/f (SOPL) 380
380 380
Bal c/f (SOPL) 380
Salaries
Bank 3,200 Bal c/f (SOPL) 3,200
3,200 3,200
b)

Trial Balance of Three Star Electrical Shop

as at 31 March 2016
Dr (RM) Cr (RM)
Capital 122,000
Cash 19,500
Bank 46,800
Furniture 10,000
AC Payable ± Sabila Furniture 10,000
Purchases 11,800
Motor Van 42,000
Drawings 200
Sales 2,900
AC Receivable - Rida 1,020
Return Inward 380
Salaries 3,200
134,900 134,900

8. Answer:
a)

Bank
1-Jan Capital 50,000 15-Jan Ap- Chua Supplies 15,000
14-Jan AR- Bina Construction 5,000 30-Jan Salaries 7,000
31-Jan bal c/f 33,000
55,000 55,000

Capital
31-Jan bal c/f 50,000 1-Jan Bank 50,000
50,000 50,000
Purchase
3-Jan AP- Chua Supplies 25,000 23-Jan Drawing 1,800
31-Jan bal c/f 23,200
25,000 25,000
Accounts Payable- Chua Supplies
15 Bank 15,000 3-Jan Purchase 25,000
31-Jan bal c/f 10,000
25,000 25,000
Accounts Receivable- Bina Construction
5-Jan Sales 10,000 8-Jan Return Inward 500
14-Jan Bank 5,000
31-Jan bal c/f 4,500
10,000 10,000
Sales
31-Jan bal c/f 13,200 5-Jan AR- Bina Construction 10,000
11-Jan Cash 3,200
13,200 13,200
Lorry
7-Jan Ojie Transport 30,000 31-Jan bal c/f 30,000
 30,000 30,000
Ojie Transport
31-Jan bal c/f 30,000 7-Jan Lorry 30,000
30,000 30,000
Return Inward
8-Jan AR- Bina Construction 500 31-Jan bal c/f 500
500 500
Cash
11-Jan Sales 3,200 31-Jan bal c/f 3,200
3,200 3,200
Drawing
23-Jan Purchases 1,800 31-Jan bal c/f 1,800
1,800 1,800
Salaries
30-Jan Bank 7,000 31-Jan bal c/f 7,000
7,000 7,000

b)

Iman Hardware & Supply

Trial balance as at 31 January 2018
DR CR
Bank 33,000
Capital 50,000
Purchase 23,200
AP - Chua Supply 10,000
AR - Bina Construction 4,500
Sales 13,200
Lorry 30,000
Ojie Transport 30,000
Return inward 500
Cash 3,200
Drawing 1,800
Salaries 7,000
103,200 103,200
9. Answer:
a)

Capital
March 31Bal c/f 85,000 March 1 Cash 30,000
March 1 Motor vehicle 55,000
85,000 85,000
Cash
March 1 Capital 30,000 March 8 Bank 15,000
March 22 Sales 1,500 March 29 Utility expenses 400
March 31 Bal c/f 16,100
31,500 31,500
Motor Vehicle
March 1 Capital 55,000 March 31 Bal c/f 55,000
55,000 55,000
Office Furniture
March 3 AP - Furni World 12,500 March 31 Bal c/f 12,500
12,500 12,500
AP - Furni World
March 31 Bal c/f 12,500 March 3 Office furniture 12,500
12,500 12,500
Bank
March 8 Cash 15,000 March 26 Rental 2,000
March 31 Bal c/f 13,000
15,000 15,000
AP - Kembara Enterprise
March 16 Return outwards 680 March 12 Purchases 6,800
March 31 Bal c/f 6,120
6,800 6,800
Purchases
March 12 AP-Kembara Ent 6,800 March 30 Drawings 500
March 31 Bal c/f 6,300
6,800 6,800
Sales
March 31 Bal c/f 5,000 March 15 AR-Berjaya Trading 3,500
March 22 Cash 1,500
5,000 5,000
AR - Berjaya Trading
March 15 Sales 3,500 March 31 Bal c/f 3,500

3,500 3,500
Return Outwards
March 31 Bal c/f 680 March 16 AP-Kembara Ent 680
680 680
Rental
March 26 Bank 2,000 March 31 Bal c/f 2,000
2,000 2,000
 Utility Expenses
March 29 Cash 400 March 31 Bal c/f 400
400 400
Drawings
March 30 Purchases 500 March 31 Bal c/f 500
500 500

b)
Success Trading
Trial Balance as at 31st March 2019
Particulars Debit (RM) Credit (RM)
Capital 85,000
Cash 16,100
Motor Vehicle 55,000
Office Furniture 12,500
AP - Furni World 12,500
Bank 13,000
AP - Kembara Enterprise 6,120
Purchases 6,300
Sales 5,000
AR - Berjaya Trading 3,500
Return Outwards 680
Rental 2,000
Utility Expenses 400
Drawings 500
109,300 109,300
 10. Answer:
a)

Returns Outwards a/c

31/10 Bal c/f 800 9/10 AP:Sendayu S/B 800
800 800
AR: Macaron Ent a/c
13/10 Sales 10,800 31/10 Bal c/f 10,800
10,800 10,800
Furniturel a/c
15/10 AP:Logistik S/B 2,800 31/10 Bal c/f 2,800
2,800 2,800
AP: Logistik Sdn Bhd a/c
31/10 Bal c/f 2,800 15/10 Furniture 2,800
2,800 2,800
Drawings a/c
24/10 Purchases 150 31/10 Bal c/f 150
150 150
Miscellaneous Exp a/c
27/10 Cash 130 31/10 Bal c/f 130
130 130
Salaries a/c
27/10 Bank 1,200 31/10 Bal c/f 1,200
1,200 1,200
Capital a/c
31/10 Bal c/f 100,000 1/10 Bank 100,000
100,000 100,000
Bank a/c
1/10 Capital 100,000 18/10 AP: Sendayu S/B 4,000
30/10 Salaries 1,200
31/10 Bal c/f 94,800
100,000 100,000
Cash a/c
6/10 Sales 2,500 27/10 Miscellaneous 130
31/10 Bal c/f 2,370
2,500 2,500
Sales a/c
31/10 Bal c/f 13,300 6/10 Cash 2,500
13/10 AR: Macaron S/B 10,800
13,300 13,300
Purchases a/c
4/10 AP: Sendayu S/B 9,000 24/10 Drawings 150
31/10 Bal c/f 8,850
9,000 9,000

38
 AP: Sendayu Sdn Bhd a/c
9/10 R.Outwards 800 4/10 Purchases 9,000
18/10 Bank 4,000
31/10 Bal c/f 4,200
9,000 9,000

b)

DINO’S ENTERPRISE
Trial Balance as at 31 January 2018
DR (RM) CR (RM)
Capital 100,000
Bank 94,800
Cash 2,370
Sales 13,300
Purchases 8,850
A/Payable : Sendayu Sdn Bhd 4,200
Returns Outwards 800
A/Receivable : Macaron Enterprise 10,800
Furniture 2,800
A/Payable : Logistik Sdn Bhd 2,800
Drawings 150
Miscellaneous Expenses 130
Salaries 1,200
121,100 121,100