FACULTY OF COMPUTING, INFORMATICS AND MATHEMATICS

BACHELOR OF SCIENCE (HONS.) MATHEMATICS

INTERMEDIATE FINANCIAL ACCOUNTING AND REPORTING (ACC 407)

FINAL PROJECT: (SOLE TRADING BUSINESS)

“AFS FURNISHING & FASHION”

PREPADED BY :

SYAMIN MUSFIRAH BINTI MOHD SOFI (2023260856)

NOOR ALIA BINTI ROSLI (2023813874)

SOFIA BINTI DAUD (2023680692)

FATIN NATASYA BT MOHD KHATIB (2023492308)

CLASS:

N4CS2491A1

PREPARED FOR:

MADAM RAFIZAN BINTI ABDUL RAZAK

SUBMISSION DATE :

20/1/2023
 ACKNOWLEDGEMENT

We would like to praise Allah S.W.T for giving us the strength and because of his blessing, we managed to

accomplish Fundamental Financial Accounting and Reporting group of project simulation assignment. This

assignment cannot be complete without effort and cooperation from our group members. We are grateful

because we managed to complete and submit our group project by the time given by our lecturer, Madam

Rafizan Bt Abdul Razak.

We would like to acknowledge with thanks to our lecturer Madam Rafizan Bt Abdul Razak because without

her guide, our assignment cannot done accordingly. We also like to thank her for teaching us in this course

with patience and always sharing knowledge through her lecture with us.
TABLE OF CONTENT

1.0 INTRODUCTION................................................................................................................1

1.1 INTRODUCTION............................................................................................................2

2.0 CONTENT...........................................................................................................................3

2.1 BUSINESS BACKGROUND..........................................................................................3

2.2 BUSINESS TRANSACTIONS........................................................................................4

2.3 JOURNAL ENTRIES......................................................................................................6

2.4 LEDGER..........................................................................................................................9

2.5 TRIAL BALANCE........................................................................................................20

3.0 CONCLUSION..................................................................................................................21

4.0 REFERENCES...................................................................................................................22
1.0 INTRODUCTION

For our final project, we have chosen to do sole proprietorship to increase our
knowledge about the business. From this project, we learn how in a sole proprietorship, there
are also accounting transactions for every month, specialized journals, subsidiary ledgers
account and trial balance.

Sole proprietorship referred to a business owned and run by one individual with
no legal distinction between owner and the business. In Malaysia, sole proprietorship
registered under the Registration of Business Act 1956. As the sole proprietor is not a legal
entity, the owner is entitled to all profits made from the business. However, the owner's
liability is unlimited, not just when the business is having financial difficulty, but also when
business fails and faces bankruptcy. There are difficulties concerning to the availability of
accounting information as there is no obligation for sole proprietorship businesses to
submit audited accounting reports. Therefore, most owners of sole proprietorships tend to
neglect the preparation of proper accounting records. So, it becomes a tedious process
to access the sole proprietor's true financial stability when, for instance, the owner wishes
to apply for a bank loan. In accounting process, various details, and information about the
business transactions of the organization must be collected. The obtained information will
be recorded and then organize to come up with a proper report. In this topic, we will learn
the accounting process which starting with identifying and analyse business transactions,
then maintaining the records of transactions in a journal, then posting a transaction to a
ledger, and continue with the trial balance before we can prepare the financial statement.

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1.1 INTRODUCTION

AFS Furnishing & Fashion Enterprise is owned by Noor Alia Bt Rosli, a graduate from
Universiti Teknologi Mara (UiTM) majoring in Bachelor of Science Mathematics with
honours. AFS Furnishing & Fashion Enterprise is a business where we sell exclusive custom
curtain and their accessories. The type of business is sole proprietorship. Sole proprietorship
is owned by one person and the owner has unlimited liability. Unlimited liability means the
owner can use their own personal assets to cover the amount of debt if the owner cannot pay
for the debt. (K. Khairul Anuar, 2019)

The business is located at Lotus Seremban , No G12 , Jalan Pandan Prima , 70300 ,
Seremban , Negeri Sembilan. The owner chose to open a business at the said area as it is
located at a strategic place s there is residential area and also a supermarket near the shop
area. This can attract more people as it is close to residential area.

The shop opens everyday at 10 a.m and closes at 10 p.m. There are 5 workers at the shop
with different amount salary depends on the type of work. 2 of the workers are in charge with
the delivery of our product and the other 3 workers are in charge with office matters. The
salary range are RM1,200 to RM2,300. The business started on 1st August 2023 with capital
contribution of RM170,000. The owner started a business with RM150,000 in the bank and
RM20,000 cash in hand which amounted to RM 170,000.

Accordingly, curtains are made from a variety of thick fabrics, each of it came with
different characteristics such as light absorption as well as heat protection properties. The
benefits for curtains such as able to keep your room feel cool. For instance, it keeps your
home warm during the cold season and cool during the summer. Therefore, curtains are able
to reduce sound pollution. It is able to improve the sound quality and lessen vibration levels
within whatever room they are installed in. Moreover, it could protect your own privacy as
protection may be a significant reason for individuals to decide window adornments which
offered a sensation of solacement. As a result, curtains provide several advantages that
benefit everyone lifestyle. We supply only the best product for the customers, to achieve the
goal which has been set and last but not least, making sure the business can reap profits. The
business’ financial year end ended at 31st August 2023. The business recorded for one month
which started at 1st August 2023 and ended on the 31th August 2023.

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2.1 BUSINESS BACKGROUND

1. Type of business Sole proprietorship

2. Name of business AFS Furnishing & Fashion Enterprise
3. Owner’s name Nur Ismaliyana Binti Ismail
4. Address
Lotus Seremban , No G12 , Jalan Pandan Prima , 70300,
Seremban , Negeri Sembilan.
5. Business started 1st August 2023
6. Operation hours
Monday – Sunday

10 a.m. – 10 p.m.

7. Number of workers 5 workers (RM1,200 – RM2,300)

8. Business activities I. Deliver the custom curtain to the
customer
II. Making sure we supply only the best product for
the customers
III. Achieve the goal which has been set
IV. Making sure the business can reap profits
9. Types of goods sold Curtain and its accessories
10. Capital contribution Contributed by the owner with a total of RM170,000
11. Financial year end 31st August 2023
12. Transaction for one 1st August 2023 – 31th August 2023
month

3
2.2 BUSINESS TRANSACTIONS

The following are AFS Fashion & Furnishing transactions for the month of August 2023 :

No Date Details
1 1 Started a business with RM150 000 in the bank and RM 20 000 at cash
in hand.

2 1 Took a loan from Maybank worth RM 50 000.

3 2 Bought air-conditioner for business worth RM 7 800 and office
equipment worth RM 1 300 by cash.

4 4 Purchase goods from Mrazy Gina for RM 4 800 on credit.

5 6 Purchase curtain rods from Curtain Cartel worth RM 2 450 on credit.

6 6 Purchase goods from Carnegie Enterprise RM 150 on credit.

7 7 Returned purchase from Curtain Cartel worth RM 350.

8 8 Payment for Mrazy Gina RM 4 800 by cheque.

9 10 Sold ten unit curtains and five units tie back worth RM 10 050 to
Hagia Sophia Barakah by cash.

10 11 Payment for Curtain Cartel RM 1 800 by cheque.

11 12 Sold goods worth RM 8 660 for Dhia Enterprise by credit.

12 13 Payment for Carnegie Fabrics RM 150 by cheque.

13 14 Dhia Enterprise returned defective goods worth RM 1 000.

14 16 Sold goods for Meriah Holdings Sdn Bhd for RM 14 310 by credit.

15 18 Received payment by Meriah Holdings Sdn Bhd for RM12 000 by

online transfer.

16 19 Purchase goods worth RM 300 by cash.

17 20 Sold goods to Asiah Bt Malim worth RM 21 500 in credit.

18 22 Paid RM 800 to RH5A Trading for advertising expenses.

19 23 Owner took goods worth RM 1 500 for personal use.

20 24
Paid interest of Maybank loan worth RM 500 by cheque.

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21 24 Received payment from Asiah Bt Malim worth RM 21 500 by online
banking.

22 25 Received rental payment from Muhammad Ali for RM 1 500 by cash.

23 26 Paid RM 7 500 for salary and wages by cheque.

24 29 Paid RM 53 for utilities.

25 30 Owner withdraw RM 1 000 cash for personal use by cheque.

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2.3 JOURNAL ENTRIES

General Journal GJ1

Date Details Folio Debit (RM) Credit (RM)

2020
November Van GL2 50 000
1 Capital GL1 50 000
(To record owner bring in business use)

6 Machinery GL6 40 000

Besi Enterprise 40 000
(To record machinery purchases in
credit)

23 Drawings GL12 500

Purchases 500
(To record owner took goods for
personal use)

Total 90 500 90 500

Purchase Journal PJ1

Date Particulars Folio Invoice Amount (RM)

2020
November 4 Seng Plastics Sdn Bhd LAP3 77611 40 000
6 Carotino Sdn Bhd LAP1 CV80981 25 000
22 Yee Lee Corporation LAP2 43243 15 000
30 Total GL18 80 000

6
 Return Outward Journal ROJ1

Date Particulars Folio Credit Note no Amount (RM)

2020
November 7 Carotino Sdn Bhd LAP2 51776 3 500
Total GL10 3 500

Sales Journal SJ1

Date Particular Folio Invoice Amount (RM)

2020
Novemver 12 Traders Hotel LAR1 I00001 70 000
18 Hanis Eatery LAR2 I00002 50 000
24 Setia Minimart LAR3 I00003 30 000
Total GL9 150 000

Return Inward Journal RIJ1

Date Particular Folio Debit Note No Amount (RM)

2020
November 14 Traders Hotel LAR1 52118 300
Total GL11 300

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 Cash Receipts Journal CRJ1

Date Accounts Credited Cash Bank Discount Account Sales Other

Allowed Receivables Accounts
(RM) (RM) (RM) (RM) (RM) (RM)
2020
November 1 Capital 20 000 100 000 120 000
1 Loan 50 000 50 000
10 Sales 28 000 28 000
16 Traders Hotel 35 000 35 000
20 Hanis Eatery 25 000 25 000
25 Setia Minimart 15 000 15 000
28 Commission Received 2 500 2 500
Total 48 000 227 500 0 75 000 28 000 172 500

Cash Payment Journal CPJ1

Date Accounts Credited Cash Bank Discount Accounts Purchases Other

Allowed Payables Accounts
(RM) (RM) (RM) (RM) (RM) (RM)
2020
November 2 Office Equipment 15 000 15 000
8 Seng Plastics Sdn Bhd 25 000 25 000
11 Besi Enterprise 8 000 8 000
13 Carotino Sdn Bhd 11 000 11 000
19 Purchase 12 000 12 000
24 Yee Lee Corporation 7 500 7 500
26 Salary and wages 8 000 8 000
29 Utilities 3 000 3 000
30 Drawings 2 000 2 000
Total 29 000 62 500 0 51 500 12 000 28 000

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 2.4 LEDGER AND CLOSING OF ACCOUNT

Traders Hotel – Account Receivable LAR1

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 12 Sale SJ1 70 000 November 14 Return Inward RIJ1 300
November 16 Bank CRJ1 35 000
30 Balance c/d 34 700

70 000 70 000

December 1 Balance b/d 34 700

Hanis Eatery - Account Receivable LAR2

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 18 Sale SJ1 50 000 November 20 Bank CRJ1 25 000
30 Balance c/d 25 000

50 000 50 000

December 01 Balance b/d 25 000

9
 Setia Minimart - Account Receivable LAR3
Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 24 Sales SJ1 30 000 November 25 Bank CRJ1 15 000
30 Balance c/d 15 000

30 000 30 000

December 01 Balance b/d 15 000

Carotino Sdn Bhd - Account Payables LAP1

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 7 Purchase Return SJ1 3 500 November 06 Purchase CRJ1 25 000
13 Bank 11 000
30 Balance c/d 10 500

25 000 25 000

December 01 Balance b/d 10 500

10
 Yee Lee Corporation - Account Payables LAP2
Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 24 Bank SJ1 7 500 November 22 Purchase CRJ1 15 000
30 Balance c/d 7 500

15 000 15 000

December 01 Balance b/d 7 500

Seng Plastic Sdn Bhd - Account Payables LAP3

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 08 Bank CPJ1 25 000 November 04 Purchase PJ1 40 000
30 Balance c/d 15 000

40 000 40 000

December 01 Balance b/d 15 000

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 GENERAL LEDGER

Capital Account GL1

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 30 Balance c/d 170 000 November 01 Van GJ1 50 000
1 Bank CRJ1 100 000
1 Cash in hand CRJ1 20 000

170 000 170 000

December 01 Balance b/d 170 000

Van Account GL2

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 01 Capital GJ1 50 000 November 30 Balance c/d 50 000

50 000 50 000

December 01 Balance b/d 50 000

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 Bank Account GL3
Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 30 Other Account CRJ1 227 500 November 30 Other Account CPJ1 62 500
30 Balance c/d 165 000

227 500 227 500

December 01 Balance b/d 165 000

Cash Account GL4

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 30 Other Account CRJ1 48 000 November 30 Other Account CPJ1 29 000
30 Balance c/d 19 000

48 000 48 000

December 01 Balance b/d 19 000

13
 Loan Account GL5
Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 30 Balance c/d 50 000 November 01 Bank CRJ1 50 000

50 000 50 000

December 01 Balance b/d 50 000

Machinery Account GL6

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 06 Besi Enterprise 23 000 November 30 Balance c/d CRJ1 23 000

23 000 23 000

December 01 Balance b/d 23 000

14
 Besi Enterprise Account GL7
Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 11 Bank CPJ1 8 000 November 06 Machinery GJ1 23 000
30 Balance c/d 15 000

23 000 23 000

December 01 Balance b/d 15 000

Purchase Account GL8

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 19 Bank CPJ1 12 000 November 23 Drawings GJ1 500
30 Account Payable PJ1 80 000 30 Balance c/d 91 500

92 000 92 000

December 01 Balance b/d 91 500

15
 Sales Account GL9
Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 30 Balance c/d CPJ1 178 000 November 10 Cash CRJ1 28 000
30 Account Receivable SJ1 150 000

178 000 178 000

December 01 Balance b/d 178 000

Return Outwards Account GL10

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 30 Balance c/d 3 500 November 30 Account Payable ROJ1 3 500

3 500 3 500

December 01 Balance b/d 3 500

16
 Return Inwards Account GL11
Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 30 Account Receivable 300 November 30 Balance c/d ROJ1 300

300 300

December 01 Balance b/d 300

Drawings Account GL12

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 23 Purchase GJ1 500 November 30 Balance c/d 2 500
30 Cash CPJ1 2 000

2 500 2 500

December 01 Balance b/d 2 500

17
 Office Equipment Account GL13
Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 02 Cash CPJ1 15 000 November 30 Balance c/d 15 000

15 000 15 000

December 01 Balance b/d 15 000

Salary and Wages Account GL14

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 26 Bank CPJ1 8 000 November 30 Balance c/d 8 000

8 000 8 000

December 01 Balance b/d 8 000

18
 Utilities Account GL15
Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 29 Utilities CPJ1 3 000 November 30 Balance c/d 3 000

3 000 3 000

December 01 Balance b/d 3 000

Commission Received Account GL16

Date Particulars Folio RM Date Particular Folio RM
2020 2020
November 30 Balance c/d 2 500 November 28 Bank CRJ1 2 500

2 500 2 500

December 01 Balance b/d 2 500

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2.5 TRIAL BALANCE

Nature Fresh Enterprise

Trial Balance as at 31 December 2020

ACCOUNTS NAME FOLIO DEBIT (RM) CREDIT (RM)

Capital GL1 170,000

Van GL2 50,000
Bank GL3 165,000
Cash in hand GL4 19,000
Loan GL5 50,000
Machinery GL6 23,000
Besi Enterprise GL7 15,000
Purchase GL8 91,500
Sales GL9 178,000
Return Outwards GL10 3,500
Return Inwards GL11 3,00
Drawings GL12 2,500
Office Equipment GL13 15,000
Salary and Wages GL14 8,000
Utilities GL15 3,000
Commission Received GL16 2.500
Accounts Payable:
Corotino Sdn Bhd LAP1 10.500
Yee Lee Corporation Sdn Bhd LAP2 7,500
Seng Plastic Corporation LAP3 15 000
Accounts Receivable:
Traders Hotel LAR1 34,700
Hanis Eatery LAR2 25,000
Setia Minimart LAR3 15,000

TOTAL 452,000 452,000

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3.0 CONCLUSION

This business helps us to improve ourselves in accounting as we provide everything

that is essential to run a business. We managed to prepare business background, business
transaction, journal entries, ledger and closing of account and trial balance to complete this
assignment. We also had the opportunity to discussed among our members and had come to
the conclusion in doing this type of business for the project.

In this business, our capital coming from various of sources such as the contribution
by the owner and also by making a loan from the bank. Also, accounting information helps
business to achieve goals by planning future activities such as balancing budgets and
coordination of various activities in different aspects.

Basically, accounting is the process of recording the financial transaction in the books
of accounts, classifying the transactions into different heads and sub-heads, summarising the
accounting data into reports and financial statements and interpreting the financial data to
assist decision making. In other words, it will help our business to track down the company’s
growth and planning the future direction. Our business get to easily deals with suppliers using
the financial statement that company provided and entrust the supplier about company’s
ability to pay the debt.

With this, our business can gain profit and be able to be operated in the future without
having any hindrance and disturbance. Our business also might be able to compete in the
market place when it was completely stabilize.

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4.0 REFERENCES

What Is a Sole Proprietorship? (12 March, 2018). Retrieved 14 January, 2021, from The
balance small business.

Khairul Anuar Kamarudin, M. M. (2019). Introduction to Financial Accounting 1st Edition.

In A. @. Ishak, Introduction to Financial Accounting (pp. 1-194). Kedah: Faculty of
Accountancy, UITM Kedah .

Pacific, E. A. (2006, June 25). Sole Proprietorship Business. Retrieved January 14,
2021, from Entrepreneur Asia Pacific:

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