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ACC0006 Business Accounting
Diploma Programmes
Continuous Assessment 1 (Individual Assignment: 50 marks)
20% of Final Grade
Question 1 (10 marks)
Sandie started a retail business selling handphone covers. The following transactions took place in the month of November 2024.
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2024 |
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Nov |
1 |
Sandie started the business by depositing $50,000 into the business bank account. |
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7 |
A loan of $50,000 was taken from Alice Tan to further finance the business. |
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12 |
Bought a laptop $3,000 on credit for office use. |
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16 |
Bought $25,000 worth of phone covers from supplier - Ben on credit. |
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24 |
Phone covers were sold to an online shop for $10,000 cheque. |
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30 |
Sandie took $500 worth of phone covers to give to friends as personal gifts. |
Required:
Using the format of the table given below, analyse the transactions into various components. Please provide your answers in the following answer template given.
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Date Nov |
Accounts involved |
Type of Account |
Nature of Account |
Increase/ Decrease |
Marks |
|
1 |
Cash at bank Capital |
Assets Equity |
Dr Cr |
Increase Increase |
- |
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7 |
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12 |
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16 |
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24 |
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30 |
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Question 2 (15 marks)
Jen’s business sells branded laptop bags and was set up on 1 October 2024. It had the following transactions for the month of October:
Oct 1 Jen commenced business with $20,000 in the bank and office furniture worth $15,000.
3 1,000 laptop bags costing $15 each were bought on credit from Techno Mart.
8 20 laptop bags were found with missing logos. They were returned to Techno Mart.
10 Jen took up a short-term bank loan of $20,000 to finance the business operations.
12 Bought $12,000 office equipment by cheque.
15 Sold 100 laptop bags at $65 each to IT Retail Giant on credit.
16 Sold 20 laptop bags at $65 each to walk-in customers by cheque.
22 IT Retail Giant returned 4 laptop bags with faulty zipper.
27 Paid Techno Mart $14,000 in full settlement of its account.
29 Repaid part of the bank loan with a cheque of $5,000.
21 Jen paid business rental $6,000 and salaries $7,700 by issuing personal cheques.
Required:
Prepare general journal entries in the following answer template given. Ignore narration.
General Journal
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Date |
|
Particulars |
Debit ($) |
Credit ($) |
Marks |
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Question 3 (25 marks)
The following trial balance as at 31 December 2024 has been prepared for Nina Trading.
|
|
Debit ($) |
Credit ($) |
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Advertising & promotion |
12,635 |
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Bank charges |
2,500 |
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Capital |
|
364,900 |
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Cash at bank |
130,900 |
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Discount |
16,318 |
13,975 |
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Donations |
4,000 |
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Drawings |
5,798 |
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Freight inwards |
7,850 |
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Freight outwards |
6,490 |
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Furniture & fittings |
540,000 |
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Interest expense |
3,300 |
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Interest income from bond investment |
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19,645 |
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Investment in government bonds |
120,000 |
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Loan from DBK Bank (due on 31/3/2025) |
|
10,797 |
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Loan from UAB Bank (due in year 2028) |
|
200,000 |
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Loss on disposal of fixed assets |
1,230 |
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Motor vehicles |
300,000 |
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Office insurance expense |
67,340 |
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Office rental expense |
5,436 |
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Office repairs expense |
11,176 |
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Office salaries |
38,887 |
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Opening stock, 1 Jan 2024 |
71,297 |
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Purchases |
135,790 |
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Returns |
3,135 |
6,798 |
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Sales |
|
989,800 |
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Salesmen’s salary & commission |
22,991 |
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Shop fire insurance |
1,790 |
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Shop rental expense |
20,600 |
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Trade creditors |
|
53,000 |
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Trade debtors |
88,452 |
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Trademark |
41,000 |
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1,658,915 |
1,658,915 |