Accounting 101

QUESTION 4 a. Mr. Eizlan operates a car repair shop and his business uses the single entry method of recording transactions. The following are the information relating to his business as at 31 October 2016: 31 October 2016 Premises Furniture Equipment Inventory Bank Creditors 1 November 2015 RM 60,000 15,000 13,000 9,000 5,000 9,000 16,000 RM 60,000 19,000 16,000 10,000 7,000 10,000 16,000 Loan Mr. Eizlan also informed you that he withdrew RM 2,500 cash on 1 January 2016 and that he had contributed RM 6,000 in cash as additional capital on 31 May 2016. Required: i. Prepare a Statement of Affairs as at 1 November 2015 and 31 October 2016. (16 Marks) ii. Show a statement to determine the profit or loss for the year ending 31 October 2016. (4 Marks) b. Examine the following error: i. Cash drawings of RM990 is debited to the cash accounts and credited to the drawing account. ii. JA Utama Company paid for carriage inwards by cash RM365. It was credited in the cash account as RM356 and debited in the carriage outwards account as RM365. iii. Vehicle maintenance cost of RM820 was entered into the bank account as RM802. In another side, it is correctly entered. iv. Paid salary to Esther amounting RM890 by cheque. The transaction had been entered twice in the debit side. Required: Prepare the journal entries to correct the error