FACULTY OF BUSINESS AND MANAGEMENT

SESSION 1 2022/2023

ACC407 – FUNDAMENTAL FINANCIAL ACCOUNTING AND REPORTING

FINAL PROJECT:
ACCOUNTING SIMULATION

DESSERT EXPERT

PREPARED BY:

NAME MATRICS NO.

1. ALIF BIN MOHAMED SOHAIME 2022828458

2. ZIYAD SYAKIRIN BIN YUSRI AMRI 2022868534

3. AKIF FAKHRULLAH BIN MOHD RADZI 2022819206

4. MUHAMMAD AIMAN HAKIMI BIN

AZAHAR 2022868956

PREPARED FOR:
MADAM SITI SAKINAH BINTI AZIZAN

i
 ACKNOWLEDGEMENT OF AUTHENTICITY ASSIGNMENT

"I hereby certify that at all times all the results of the assignments I submit are my own work,
not copying and plagiarizing from any source or trying to copy any party without putting
proper references. I am aware that any student who violates or is suspected of violating the
certificate made may be brought to the Faculty's Disciplinary Committee."

NO. GAMBAR
BIL. NAMA TANDATANGAN TARIKH
MATRIK PELAJAR

Alif Bin
1. Mohamed 2022828458 24/1/2023
Sohaime

Ziyad
2. Syakirin Bin 2022868534 24/1/2023
Yusri Amri

Akif
Fakhrullah
3. 2022819206 24/1/2023
Bin Mohd
Radzi

Muhammad
Aiman
4. 2022868956 24/1/2023
Hakimi Bin
Azahar

i
ACKNOWLEDGEMENT

Bismillahirrahmanirrahim,

Alhamdulillah, thanks to God's bounty and grace, we were able to complete the
Intermediate Financial Accounting and Reporting (ACC407) assignment within the allotted
time frame. There are a variety of resources that can be utilized during the preparation of this
report. The results of this report are not solely the result of our efforts, external parties also
provided accurate assistance and cooperation. We would like to thank our professor, Madam
Siti Sakinah Binti Azizan, for providing a great deal of assistance and direction in preparing
the specific formats required for this assignment. He has also provided a clear explanation
and ideas for enhancing this assignment. We will never forget the service and sacrifice of
Madam Sakinah. In addition, we would like to extend a million thanks to our friends who
provided unwavering support and knowledge throughout this project.

In addition, we would like to extend a million thanks to our cherished parents and
siblings, who have always provided us with the inspiration to persevere in overcoming
obstacles throughout the completion of this project. Without encouragement from various
parties, it may not be possible to complete this report successfully.

In conclusion, we hope that this report will be of some assistance to other students in
completing their assignments in the coming days. Only to Allah do we submit, may He grant
us with Taufiq and guidance in this world and the next.

Thank you.

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 TABLE OF CONTENTS

NO. OF
DESCRIPTIONS
PAGES

ACKNOWLEDGEMENT OF AUTHENTICITY ASSIGNMENT i

ACKNOWLEDGEMENT ii

TABLE OF CONTENTS iii

1.0 INTRODUCTION (BACKGROUND OF THE BUSINESS) 1

2.0 ACCOUNTING TRANSACTIONS 2

3.0 SPECIALISED JOURNAL 3–5

4.0 SUBSIDIARY LEDGERS ACCOUNT 6 – 11

5.0 TRIAL BALANCE 12

6.0 CONCLUSION 13

7.0 REFERENCES

8.0 APPENDIX

8.1 SECTION A: SALE INVOICES

8.2 SECTION B: PURCHASE INVOICES

iii
1.0 INTRODUCTION (BACKGROUND OF THE BUSINESS)

Mr. Faris started the company, Dessert Expert, in June of 2020. In his shop, Dessert
Expert, Mr. Faris sells a wide selection of baked goods, including many of his own creations
since it is a bakery shop. Mr. Faris owns Dessert Expert by himself, making it a sole
proprietorship. There are no other partners in the business besides the owner. He is in charge
of everything in the shop and can make any choice he sees fit. Daily operations are under his
watchful eye. It officially opened for business on June 1, 2021. The address of Dessert Expert
is No. 11, Jalan Wawasan, Taman Sinar Intan 3, 08000 Sungai Petani, Kedah. There are two
reasons for this. The first is because the way to get to this store is very easy. The second is a
strategic location because it has grown into the second largest city in Kedah after Alor Setar.
Sungai Petani is also a popular place to visit among Kedah residents. This encourages people
to buy cakes and brownies from Dessert Expert. Mr. Faris has RM130,000 for machinery, raw
materials, supplies, and other needs.

Mr. Faris took over the company because he has always been interested in business,
especially baking. He believes he could make better administrative and strategic decisions
without approval if he operated the bakery alone. Mr. Faris realises that business owners’
accountability extends beyond their initial investment. For instance, the Dessert Expert
Company’s owner’s home, car, and other assets will be liquidated to pay off debt. Dessert
Expert targets bakery-buying locals. Daily, weekly, or monthly customers buy these. They
purchase baked goods for special occasions. They shop at local bakeries. He thinks younger
customers will make his bakery successful.

Name of the business Dessert Expert

Type of goods sold Desserts such as cake, cinnamon rolls, pavlova, and many more

Established on June 1, 2021

Business Owner Mr. Faris

Owner’s capital RM 130,000

Address of The No. 11, Jalan Wawasan, Taman Sinar Intan 3, 08000 Sungai
Business Petani, Kedah

Phone Number 011 – 321 789 567

Email dessertexpert@gmail.com

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2.0 ACCOUNTING TRANSACTIONS

Dessert Expert owned by Mr. Faris sells various types of cakes. The following are the
transactions of business for the month of June 2021.

2021 June Transactions

01 Owner contributes RM50,000 cash in hand and RM50,000 cash at bank.

01 Owner brought in machines amounting RM20,000 into the business.

Bought bakery equipments on credit from Jayzee Sdn. Bhd. worth
02
RM2,500.
04 Owner took goods amounting RM300 for personal use.
07 Sold goods to ZamZam Bakery worth RM600.

09 Sold goods to Aimy Trading RM500 on credit.

10 Returned goods to Jayzee Sdn. Bhd. worth RM500.

13 Cash sales to Ainaa Cupcake RM350.

14 Owner injects another RM10,000 cash into the business.

16 Owner took goods amounting RM700 for personal use.

17 Bought goods on credit from Nadia Enterprise amounting RM4,000.

19 Sold goods to Aminah Homemade amounted RM530 on credit.

20 Sold goods RM2,500 for cash.

22 Bought goods from Berjaya Enterprise on credit worth RM2,200.

24 Aminah Homemade returned goods previously bought worth RM100.

26 Cash Sales to Zarina RM380.

27 Returned defective goods to Berjaya Enterprise worth RM550.

27 Owner took out cash RM1,000 from the shop for own use.

28 Paid rental expenses by cheque RM1,000.

28 Paid electricity bills RM600 by cheque.

29 Received commission by cheque RM3,200.

30 Sold goods RM3,700 for cash.

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3.0 SPECIALISED JOURNAL

GENERAL JOURNAL
Credit
Date Particulars Debit (RM)
(RM)
2021 Cash in Hand 50,000
June 01 Capital 50,000
01 Cash at Bank 50,000
Capital 50,000
01 Machines 20,000
Capital 20,000
04 Drawings 300
Purchases 300
14 Bank 10,000
Cash 10,000
16 Drawings 700
Purchases 700
27 Drawings 1,000
Cash 1,000
TOTAL 132,000 132,000

PURCHASE JOURNAL
Invoice
Date Particulars Folio Amount (RM)
No.
2021
Jayzee Sdn. Bhd. 00100 2,500
June 02
17 Nadia Enterprise 00045 4,000
22 Berjaya Enterprise 000530 2,200

Total transfered to Purchase A/c 8,700

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 SALES JOURNAL

Invoice Amount
Date Particulars Folio
No. (RM)
2021
Aimy Trading 02 500
June 09
19 Aminah Homemade 04 530

Total transfered to Sales A/c 1,030

RETURN OUTWARDS JOURNAL

Debit Amount
Date Particulars Folio
Note No. (RM)
2021
Jayzee Sdn. Bhd. 500
June 10

27 Berjaya Enterprise 550

Total transfered to Return Outwards A/c 1,050

RETURN INWARDS JOURNAL

Credit Amount
Date Particulars Folio
Note No. (RM)
2021 Aminah Homemade 100
June 24

Total transfered to Return Inwards A/c 100

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 CASH PAYMENTS JOURNAL

DEBIT CREDIT

ACCOUNTS FOLIO (RM)

DATE
DEBITED CASH BANK DISCOUNT (RM) A/C SALES BANK
(RM) (RM) ALLOWED RECEIVABLE (RM) (RM)
2021 1,000 1,000
Rental
June 28
Electricity 600 600
28
Bills

TOTAL 1,600 1,600

CASH RECEIPTS JOURNAL

DEBIT CREDIT
ACCOUNTS (RM)
DATE FOLIO CASH BANK A/C SALES OTHER
CREDITED DISCOUNT
(RM) (RM) RECEIVABLE (RM) ACC
ALLOWED
2021 ZamZam
600 600
June 07 Bakery

13 Sales 350 350

20 Sales 2,500 2,500

26 Sales 380 380

Commission
29 3,200 3,200
Received

30 Sales 3,700 3,700

TOTAL 7,530 3,200 7,530 3,200

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4.0 SUBSIDIARY LEDGERS ACCOUNT

Dr. Capital Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 01 Cash 50,000
Bank 50,000
Machines 20,000
June 30 Balance c/d 130,000 14 Cash 10,000

130,000 130,000

July 01 Balance b/d 130,000

Dr. Cash Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 01 Capital 50,000 June 27 Drawings 1,000
07 Sales 600
13 Sales 350
14 Capital 10,000
20 Sales 2,500
26 Sales 380
30 Sales 3,700 30 Balance c/d 66,530

67,530 67,530

July 01 Balance b/d 66,530

Dr. Bank Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 01 Capital 50,000 June 28 Rental 1,000

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 Utilities 600
29 Commission 3,200 30 Balance c/d 51,600
Received

53,200 53,200

July 01 Balance b/d 51,600

Dr. Machines Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 01 Capital 20,000 June 30 Balance c/d 20,000

20,000 20,000

July 01 Balance b/d 20,000

Dr. Purchases Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 02 A/c Payable – 2,500 June 04 Drawings 300
Jayzee Sdn. Bhd.
17 A/c Payable – 4,000 16 Drawings 700
Nadia Enterprise
22 A/c Payable – 2,200 30 Balance c/d 7,700
Berjaya Enterprise

8,700 8,700

July 01 Balance b/d 7,700

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Dr. Accounts Payable – Jayzee Sdn. Bhd. Cr.
Date Particulars RM Date Particulars RM
2021 2021
June 10 Return Outwards 500 June 02 Purchases 2,500

30 Balance c/d 2,000

2,500 2,500

July 01 Balance b/d 2,000

Dr. Sales Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 07 Cash 600
09 A/c Receivable – 500
Aimy Trading
13 Cash 350
19 A/c Receivable – 530
Aminah Homemade
20 Cash 2,500
26 Cash 380
June 30 Balance c/d 8,560 30 Cash 3,700

8,560 8,560

July 01 Balance b/d 8,560

Dr. Accounts Receivable – Aimy Trading Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 09 Sales 500 June 30 Balance c/d 500

500 500

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July 01 Balance b/d 500

Dr. Return Outwards Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 10 A/c Payable – 500
Jayzee Sdn. Bhd.
June 30 Balance c/d 1,050 27 A/c Payable – 550
Berjaya Enterprise

1,050 1,050

July 01 Balance b/d 1,050

Dr. Drawings Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 04 Purchases 300
16 Purchases 700
27 Cash 1,000 June 30 Balance c/d 2,000

2,000 2,000

July 01 Balance b/d 2,000

Dr. Accounts Payable – Nadia Enterprise Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 30 Balance c/d 4,000 June 17 Purchases 4,000

4,000 4,000

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 July 01 Balance b/d 4,000

Dr. Accounts Receivable – Aminah Homemade Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 19 Sales 530 June 24 Return Inwards 100
30 Balance c/d 430

530 530

July 01 Balance b/d 430

Dr. Accounts Payable – Berjaya Enterprise Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 27 Return Outwards 550 June 22 Purchases 2,200
30 Balance c/d 1,650

2,200 2,200

July 01 Balance b/d 1,650

Dr. Return Inwards Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 24 A/c Receivables – 100 June 30 Balance c/d 100
Aminah Homemade

100 100

July 01 Balance b/d 100

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Dr. Rent Expenses Cr.
Date Particulars RM Date Particulars RM
2021 2021
June 28 Bank 1,000 June 30 Balance c/d 1,000

1,000 1,000

July 01 Balance b/d 1,000

Dr. Utilities Expenses Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 28 Bank 600 June 30 Balance c/d 600

600 600

July 01 Balance b/d 600

Dr. Commission Received Cr.

Date Particulars RM Date Particulars RM
2021 2021
June 30 Balance c/d 3,200 June 29 Bank 3,200

3,200 3,200

July 01 Balance b/d 3,200

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5.0 TRIAL BALANCE

Dessert Expert
Trial Balance as at 30 June 2021

Account Debit (RM) Credit (RM)

Capital 130,000
Cash 66,530
Bank 51,600
Machines 20,000
Purchases 7,700
Accounts Payable – Jayzee Sdn. Bhd. 2,000
Sales 8,560
Accounts Receivable – Aimy Trading 500
Return Outwards 1,050
Drawings 2,000
Accounts Payable – Nadia Enterprise 4,000
Accounts Receivables – Aminah Homemade 430
Accounts Payable – Berjaya Enterprise 1,650
Return Inwards 100
Rent Expenses 1,000
Utilities Expenses 600
Commission Received 3,200

150,460 150,460

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6.0 CONCLUSION

Accounting in business begins with the recording of company transactions from a

variety of papers, depending on the type of the transaction. After being sorted, they are stored
in journals or other prime entry books. Accounting accounts are divided into five categories:
assets, owner's equity, liabilities, income, and expenses. "Assets = Capital + Liabilities" is the
fundamental accounting equation that underpins the entire double entry bookkeeping system.
The accounting equation is kept constant, regardless of the volume of business transactions.
Every company transaction has two effects on the accounting formula. The value of assets,
obligations, and capital will either increase or drop as a result of the outcomes.

The funds will subsequently be put in the proper books. A journal is a book used in
financial accounting to record every transaction that occurs within a company during a specific
time period. A journal in which commercial transactions are listed and briefly described in
chronological order. Businesses with a significant volume of daily transactions must employ
specialised journals. Besides, if you have many general ledger accounts with the same total
value, you might consider establishing a subsidiary ledger. The balances in this subsidiary
ledger and the Accounts Receivable account in the main ledger are the same. The trial
balance for the month is completed at the end of each month. The purpose is to record all
financial transactions in the books of account completely and accurately. When feasible, any
inaccuracies should be corrected. If all accounting transactions were completely documented
and all ledger balances were correctly generated, trial balance debits must equal trial balance
credits.

This final project requires us to summarise a sole proprietorship by presenting the

history of a sole proprietorship, the business's activities, the journals, the ledgers, and the trial
balance. Our research for this capstone project convinced us that proper bookkeeping is
essential for any commercial enterprise. We discovered that accounting information is
recorded and analysed in order to determine a company's financial position, that is, whether
the organization is profitable or losing money, and what steps should be made to correct the
latter. Furthermore, because human memory is limited, we can avoid any deceptive financial
statements. This exercise has underlined the need of accounting for one-person firms. We
truly hope that our final result satisfied all of your demands and des

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7.0 REFERENCES

Marzlin Marzuki, Wan Adibah Wan Ismail, Siti Salmah Abu Bakar, Roshidah Safeei, Nurul
Fatihah Ilias, Norazzie Md Zin, . . . Khairul Anuar Kamarudin. (2022). In Introduction
To Financial Accounting (pp. 40-51, 74-76). Sungai Petani: Faculty of Accountancy,
Universiti Teknologi Mara (UiTM) Kedah Branch.
8.0 APPENDIX

SECTION A: SALE INVOICES

SECTION B: PURCHASE INVOICE