FACULTY OF ADMINISTRATIVE SCIENCE & POLICY STUDIES

ACC406 (INTERMEDIATE FINANCIAL ACCOUNTING & REPORTING)

FINAL PROJECT: ACCOUNTING SIMULATION PROJECT

(ASSIGNMENT 2)

NAMI FABIEZ SCARVES

PREPARED BY:

1. SITI NUR NADYA BINTI MOKHTAR (2020621012)

2. NUR IZZATY BINTI AHMAD ZAINUDDIN (2020837382)
3. NOOR NABILA DURRANI BINTI NORAZMAN (2020844518)
4. FARAH HANAN BINTI MOHD JAMIL (2020896762)

GROUP:
AM2251A

PREPARED FOR:
DR. SALWA MUDA
 TABLE OF CONTENTS

TABLE OF CONTENTS 1

1.0 ACKNOWLEDGEMENT 2

2.0 INTRODUCTION 2

3.0 ORGANIZATION BACKGROUND 3

3.1 Vision 4

3.2 Mission 4

3.3 Target Market 4

3.4 Objectives 4

4.0 TRANSACTIONS FOR THE MONTH OF AUGUST 2020 5

5.0 ACCOUNTING TRANSACTIONS 7

6.0 SPECIALIZED JOURNAL 10

7.0 SUBSIDIARY LEDGERS ACCOUNT 16

8.0 TRIAL BALANCE 27

9.0 CONCLUSION 28

10.0 REFERENCES 28

1
1.0 ACKNOWLEDGEMENT

First and foremost, praises and to Allah S.W.T who gives the blessing and
strength to complete this simulation project that was assigned to us.

We would like to take this opportunity to thank our respected lecturer of

Intermediate Financial Reporting & Accounting (ACC406), Dr. Salwa Musa from
Universiti Teknologi MARA Kampus Seremban, for her support, guide and advice for us
to complete this group project. From the bottom of our heart, we truly appreciate what
she has done for us throughout this semester especially her efforts in order to teach us
during the online lectures also guiding us to finish up this assignment. May Allah reward
her for all of her efforts.

Furthermore, we would like to take this opportunity to extend our deepest

gratitude and special thanks to everyone who has directly and indirectly guided us to
finish up this assignment. Since we are doing Online Distance Learning (“ODL”) at
home, we would like to express our deepest appreciation to our beloved family for their
continuous encouragement throughout this semester.

Lastly, without the efforts and cooperation from each of the group members
which are Siti Nur Nadya, Farah Hannan, Nur Izzaty and Noor Nabila, this assignment
could not be done and submitted according to the deadline.

2
2.0 INTRODUCTION

According to Financial Accounting for Non-Accounting Students 5th Edition (Fatimah

Abd Rauf, Amla Abu and Radziah Mahmud), sole proprietorship refers 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, which is under the
jurisdiction of the Companies Commission of Malaysia (CCM) under the Domestic Trade
and Consumers Affairs Ministry.

According to Suruhanjaya Syarikat Malaysia (SSM), on their website that sole

proprietorship may be a business wholly owned by one individual using a personal name as per
his / her identity card or trade name. Owners of sole proprietorship experience unlimited liability
which means that if the business fails to survive or declares bankruptcy, creditors are going to
be able to sue the business owners for all the debts which are owed. Thus, the personal assets,
income, and employment status of the owner are put at risk.

In an accounting process, there are various details and information related to the
business transaction of the company or organization. The information obtained will be recorded
and organized in order to come up with a proper report.

3.0 ORGANIZATION BACKGROUND

A scarf brand for the modern city girls, Nami Fabiez Scarves is the new cool for hijabis,
offering scarves Located in The Strand, Kota Damansara lies Nami Fabiez Scarves. A
homegrown, local scarves. The owner of this brand has started her business since early 2019
with capital RM100,000. The layout of their shop has always been the customers' and store
visitors’ favourite since people nowadays will always look up on ​“Insta-worthy” s​ pots. Up until
now, they already have 4 full-time workers and a whole lot of love from the local community as
well as the international hijab wearer. This brand is well known locally especially on social
media as they are using social media as a platform for them to market and update their fans and
loyal customers. A healthy competition between their competitors has always been one of the
main reasons for them to keep on going strong in the industry.

3
3.1 Vision

To be one of Malaysia's leading brands in exclusive scarves, offering high

quality, fashionable and elegantly modest creations, targeting customer profiles mainly
from Malaysia, as well as globally via its strong online presence.

3.2 Mission

To provide distinctively unique scarves to suit every woman's needs as each

individual has her own notable personality, aligning with our tagline "mUMu Scarves, Not
Your Typical Hijab".

3.3 Target Market

Medium to upper class income earners aged 20-40 who seek contemporary
modern yet elegantly modest scarves to suit their daily needs.

3.4 Objectives

● Guarantee the quality of fabrics, designs and stitching to keep customers

satisfaction.

● Inspire today-s women, especially Muslim elegant and appearance-conscious.

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4.0 TRANSACTIONS FOR THE MONTH OF AUGUST 2020

August 2020 Business Transactions

1 Started the business with cash RM 100,000 and transfer bank RM

70,000.

2 Bought scarf inner by cash from Hawa Fabric worth RM 200.

3 The business purchased scarves from KL Fazlina Fabrics on credit

amounting RM 5,000.

4 Sold scarves to Asma worth RM 650 by credit.

5 Pay bank loan RM2,000 monthly for 2 years

6 Bought office equipment cost RM 3,000 from Noesis Office Product by

credit.

8 Sold scarves to Sofia cost RM 600 on credit.

9 Paid utilities bill RM 600 by cash.

11 The business purchased scarves from Pacific Textile RM 6,000 on credit.

12 The business returned scarves to KL Fazlina Fabrics worth RM 1,000.

14 Asma returned scarves worth RM 130.

16 The business pay to KL Fazlina RM 4,000 by cash

17 Bought Furniture and Fixtures RM 6,000 by cash

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19 The business paid full amount by cheque to Pacific Textile and received a

5% discount.

21 The business purchased brooch from Angie Jewels for RM 2,000 on

credit.

22 The owner took cash RM 2,000 for his own use.

23 The owner took goods worth RM 300 for his own use.

24 Sold brooch worth RM 100 by cash.

25 Sold scarves to Hani worth RM 1,800 on credit.

26 The business paid RM 2,000 to Angie Jewel by cash.

28 Sold scarf RM 300 by cash.

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5.0 ACCOUNTING TRANSACTIONS

Date Effect Action BOPE

1/8/2020 Increase in Asset Debit Cash

Increase in Capital Credit Capital General Journal

Increase in Asset Debit Bank

2/8/2020 Decrease in Asset Credit Cash Cash payment

Increase in Asset Debit Hawa Journal

3/8/2020 Increase in Asset Debit purchase Purchase

Increase in Liabilities Credit KL Fazlina Fabrics Journal

4/8/2020 Increase in Revenue Credit sales Sales Journal

Increase in Asset Debit Asma

5/8/2020 Decrease in Asset Credit cash General Journal

Decrease in Liabilities Debit bank

6/8/2020 Increase in Asset Debit office equipment General Journal

Increase in Liabilities Credit Noesis Office

8/8/2020 Increase in Revenue Credit Sales Sales Journal

Increase in Asset Debit Sofia

9/8/2020 Increase in Expenses Debit utilities bill Cash payment

Decrease in Asset Credit cash Journal

7
11/8/2020 Increase in Expenses Debit purchase Purchase

Increase in Liabilities Credit Pacific Textile Journal

12/8/2020 Decrease in Liabilities Debit KL Fazlina Fabrics Return outward

Decrease in Expenses Credit returns outward Journal

14/8/2020 Decrease in Asset Credit Asma Return Inward

Decrease in Revenue Debit return inwards Journal

16/8/2020 Decrease in Asset Credit cash Purchase Journal

Increase in Asse Debit purchased

17/8/2020 Increase in Asset Debit furniture and fixtures Cash payment

Decrease in Asset Credit cash Journal

19/8/2020 Increase in Asset Debit Bank General Journal

Decrease in Asset Credit Discount receives

21/8/2020 Increase in Expenses Debit purchase Purchase

Increase in Liabilities Credit AngieJewels Journal

22/8/2020 Decrease in Expenses Credit Cash General Journal

Decrease in capital Debit Drawing

23/8/2020 Decrease in capital Debit drawing General journal

Decrease in Asset Credit purchased

24/8/2020 Increase in Revenue Credit sales Cash receipt

Increase in Asset Debit cash Journal

8
25/8/2020 Increase in Revenue Credit sales Sales Journal

Increase in Asset Debit Hani

26/8/2020 Decrease in Asset Credit cash Purchase Journal

Decrease in liability Debit Angie Jewel

28/8/2020 Increase in Asset Debit cash Cash receipt

Increase in Revenue Credit sales Journal

9
6.0 SPECIALIZED JOURNAL

Date Accounts Folio Debit (RM) Credit (RM)

Debit Cash GL 30,000

1/8/2020 Credit Capital GL 100,000

Debit Bank GL 70,000

2/8/2020 Credit Cash CPL 200

Debit Hawa CPL 200

3/8/2020 Debit purchase PL 5,000

Credit KL Fazlina Fabrics PL 5,000

4/8/2020 Credit sales SL 650

Debit Asma SL 650

5/8/2020 Credit cash GL 2000

Debit bank GL 2000

6/8/2020 Debit Office Equipment GL 3,000

Credit Noesis Office GL 3,000

8/8/2020 Credit Sales ​SL 600

Debit Sofia SL 600

9/8/2020 Debit utilities bill CPL 600

Credit cash CPL 600

10
11/8/2020 Debit purchase PL 6,000

Credit Pacific Textile PL 6,000

12/8/2020 Debit KL Fazlina Fabrics ROL 1,000

Credit returns outward ROL 1,000

14/8/2020 Credit Asma RIL 130

Debit return inward RIL 130

16/8/2020 Credit cash PL 4,000

Debit purchased PL 4,000

17/8/2020 Debit furniture and fixtures CPL 6,000

Credit cash CPL 6,000

19/8/2020 Debit Payable (Pacific Textiles) GL 6,000

Credit Discount receives GL 300

Credit Bank GL 5,700

21/8/2020 Debit purchase PL 2,000

Credit Angie Jewels PL 2,000

22/8/2020 Credit Cash GL 2,000

Debit Drawing GL 2,000

23/8/2020 Credit Purchase GL 300

Debit Drawing GL 300

24/8/2020 Credit sales CRL 100

Debit cash CRL 100

11
25/8/2020 Credit sales SL 1,800

Debit Hani SL 1,800

26/8/2020 Credit cash PL 2,000

Debit Angie Jewel PL 2,000

28/8/2020 Debit cash CRL 300

Credit sales CRL 300

1. General Journal
General journal is in which only those transactions are recorded that cannot be recorded
in a special journal.

Date Details Folio Debit (RM) Credit (RM)

​1/8/2020 Capital GL 100,000

5/8/2020 Loan APL 2,000

6/8/2020 Office Equipment GL 3,000

19/8/2020 Paciific Textile APL 5,700

22/8/2020 Owner GL 2,000

23/8/2020 Owner GL 300

12
 2. Cash Receipts Journal

​Cash receipt journal is used to record all cash received from any sources by crediting
Sales and debiting cash and transactions related to receipts. Cash receipts journal is
only records the cash inflow of the business.

Receipt Bank Discount Accounts Sales Other

Date No. Details Folio (RM) Allowed Receivable (RM) Account
(RM) (RM) (RM)

24/8 001 brooch SL1 100 100

28/8 002 scarf SL2 300 300

3. Cash Payment Journal

Cash payments journal is used to record all cash or cheque payments made by a
company. ​Major cash payments in business are payments to creditors, cash purchases
of merchandise, supplies, assets, cash payments and cash refunds to customers.

Date Cheque Details Folio Bank Discount Accounts Purchas Other

No. (RM) Received payable es Account
(RM) (RM) (RM) (RM)

2/8 23244 Bookwor PL6 200 200

m

9/8 23249 Utilities PL7 600 600

bills

17/8 23252 Furniture PL8 6,000 6,000

and
Fixture

13
 4. Sales Journal

The sales journal is a specialized journal used to record credit sales. The sales journal is
a chronological list of the sales invoices and to avoid cluttering the general ledger with
too much detail, and to allow for segregation of duties. The sales journal only includes
credit sales to customers for merchandise.

Date particular Invoice no Folio Amount (RM)

4/8/2020 Asma 123 SL2 650

8/8/2020 Sofia 142 SL3 600

25/8/2020 Hani 155 SL4 1,800

5. Purchase Journal
Purchases journal is used to store information about purchasing transactions on credit.

Date Particular Invoice Folio Amount (RM)

No

3/8/2020 KL Fazlina Fabrics 1777 PL1 5,000

11/8/2020 Pacific Textiles 1788 PL2 6,000

16/8/2020 KL Fazlina Fabrics 1437 PL3 4,000

21/8/2020 Angie Jewels 1876 PL4 2,000

26/8/2020 Angie Jewels 2387 PL5 2,000

14
 6. Return Outwards Journal
Return outwards journal is a specialized journal in which is used to record returns or
Allowance in respect of goods purchased.

Date Particular Credit Folio Amount (RM)

Note No

12/8/2020 KL Fazlina Fabrics 001 PL1 1,000

7. Return Inwards Journal

Return inwards journal is used to record returns or allowance in respect of goods sold.
They are goods which are returned to the selling entity by the customer.

Date Particular Credit Folio Amount (RM)

Note No

14/8/2020 Asma 111 SL2 130

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7.0 SUBSIDIARY LEDGERS ACCOUNT

Bank Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

1/8 Capital GL 70,000 19/8 Payable APL 5,700

5/8 Cash GL 2,000 31/1 Balance c/d 66,300

72,000 72,000

1/9 Balance b/d 66,300

Capital Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

1/8 Bank GL 70,000

31/8 Balance c/d 100,000 1/8 Cash GL 30,000

100,000 100,000

1/9 Balance b/d 100,000

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 Cash Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

1/8 Capital GL 30,000 2/8 Hawa CRL 200

24/8 Sales CRL 100 5/8 Bank APL 2,000

9/8 Utilities Bill CPL 600

16/8 Purchases PL 4,000

17/8 Furniture and CPL 6,000

Fixtures

22/8 Drawing GL 2,000

24/8 Sales CRL 100 26/8 Angie Jewels PL 2,000

28/8 Sales SL 300

31/8 Balance c/d 13,700

30,500 30,100

1/9 Balance b/d 13,700

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 Purchase Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

3/8 KL Fazlina PL 5,000 23/8 Drawing GL 300

Fabrics

11/8 Pacific Textile PL 6,000 31/8 Balance c/d 16,700

16/8 Cash PL 4,000

21/8 Angie Jewels PL 2,000

17,000 17,000

1/9 Balance b/d 16,700

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 Sales Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

31/8 Balance c/d 3,450 4/8 Asma SL 650

8/8 Sofia SL 600

24/8 Cash CRL 100

25/8 Hani SL 1,800

28/8 Cash SL 300

3,450 3,450

1/9 Balance b/d 3,450

Hawa Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

2/8 Cash CRL 200 31/8 Balance c/d 200

200 200

1/9 Balance b/d 200

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 KL Fazlina Fabrics Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

12/8 Return Outward ROL 1,000 3/8 Purchase PL 5,000

31/8 Balance c/d 4,000

5,000 5,000

1/9 Balance b/d 4,000

Asma Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

4/8 Sales SL 650 14/8 Return Inward RIL 130

31/8 Balance c/d 520

650 650

1/9 Balance b/d 520

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 Office Equipment Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

6/8 Noesis Office GL 3,000 31/8 Balance c/d 3,000

3,000 3,000

1/9 Balance b/d 3,000

Noesis Office Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

31/8 Balance c/d 3,000 6/8 Office Equipment GL 3,000

3,000 3,000

1/9 Balance b/d 3,000

21
 Sofia Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

8/8 Sales SL 600 31/8 Balance c/d 600

600 600

1/9 Balance b/d 600

Utilities Bill Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

9/8 Cash CPL 600 31/8 Balance c/d 600

600 600

1/9 Balance b/d 600

22
 Pacific Textile Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

19/8 Bank 6,000 11/8 Purchase PL 6,000

19/8 Discount 300 31/8 Balance c/d 300

Received

6,300 6,300

1/9 Balance b/d 300

Returns Outward Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

31/8 Balance c/d 1,000 12/8 KL Fazlina ROL 1,000

Fabrics

1,000 1,000

1/9 Balance b/d 1,000

23
 Furniture And Fixtures Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

17/8 Cash CPL 6,000 31/8 Balance c/d 6,000

6,000 6,000

1/9 Balance b/d 6,000

Discount Received Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

31/8 Balance c/d 300 19/8 Pacific Textiles GL 300

300 300

1/9 Balance b/d 300

24
 Angie Jewels Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

26/8 Cash PL 2,000 21/8 Purchase PL 2,000

2,000 2,000

1/9 Balance b/d 2,000

Drawing Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

22/8 Cash GL 2,000 31/8 Balance c/d 2,300

23/8 Purchased 300

2300 2,300

1/9 Balance b/d 2,300

25
 Hani Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

25/8 Sales SL 1,800 31/8 Balance c/d 1,800

1,800 1,800

1/9 Balance b/d 1,800

Return Inward Account

Date Particulars Ref. Amount Date Particulars Ref. Amount

(RM) (RM)

14/8 Asma RIL 130 31/8 Balance c/d 130

130 130

1/9 Balance b/d 130

26
8.0 TRIAL BALANCE

NAMI FABIEZ HIJAB

Trial Balance as at date 31 August 2020

Particular Debit (RM) Credit (RM)

Cash 13,700

Purchases 16,700

Capital 100,000

Bank 66,300

Sales 3,450

Return Inward 130

Return Outward 1,000

Drawing 2,300

Account Receivable 3,450

Account Payable 16,900

Discount Received 300

Furniture And Fixtures 6,000

27
 Office Equipment 3,000

Utilities Bill 600

112,180 121,650

9.0 CONCLUSION

​In business, the accounting process starts with the recording of business
transactions and the details are taken from source documents. Then, the details of the
transaction are classified and recorded in a prime entry such as cash book and journal.
Journal is a record of all the transactions of a business. Specialized journals are used in
this business that have numerous transactions. There were five categories in
accounting transactions which are assets, capital or owner’s equity, expenses, liability
and revenues.

Then, after the details are recorded in a journal, the total are posted to the
appropriate accounts in the subsidiary ledgers. At the end of month, the trial balance is
prepared to check whether transactions have been recorded in a book of account.

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10.0 REFERENCES

Financial Accounting for Non-Accounting Students 6th Edition by Fatimah Abd Rauf,
Amla Abu, Radziah Mahmud.

29