Question 1 Adiwarna Enterprise is a small grocery business owned by Encik Yusri. It has been...

 

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Question 1 Adiwarna Enterprise is a small grocery business owned by Encik Yusri. It has been existence for almost six years. Its financial year end is 30 June each year. It has been depreciating its motor vehicle and equipment using straight line method. The business owns three motor vehicle and few equipment. In the financial statement, these non-current assets are being recorded at the original price when they were purchased. Preparation of the books of account has been in Ringgit Malaysia (RM). Included in utilities account is water and electricity expenses. This expense is being recorded based on the payment made to the bills that they had received. For the month of June, the business normally received the bills later in July. Following information is taken from the books of account for the year ended 30 June 2020. Cash Accrued utilities Inventory Motor vehicle Equipment 33,000 10,000 14,000 100,000 30,000 Account receivable Prepaid rent paid Capital Accounts payable Long term loan Required: 1) Construct the trial balance for the accounts listed above. 63,000 10,000 100,000 40,000 100,000 2) Explain briefly any TWO (2) accounting concept adopted in preparing the books of accounts. (5 marks) (4 marks) 3) Based on the above scenario classify any TWO (2) current asset and TWO (2) current liabilities. (4 marks) Question 1 Adiwarna Enterprise is a small grocery business owned by Encik Yusri. It has been existence for almost six years. Its financial year end is 30 June each year. It has been depreciating its motor vehicle and equipment using straight line method. The business owns three motor vehicle and few equipment. In the financial statement, these non-current assets are being recorded at the original price when they were purchased. Preparation of the books of account has been in Ringgit Malaysia (RM). Included in utilities account is water and electricity expenses. This expense is being recorded based on the payment made to the bills that they had received. For the month of June, the business normally received the bills later in July. Following information is taken from the books of account for the year ended 30 June 2020. Cash Accrued utilities Inventory Motor vehicle Equipment 33,000 10,000 14,000 100,000 30,000 Account receivable Prepaid rent paid Capital Accounts payable Long term loan Required: 1) Construct the trial balance for the accounts listed above. 63,000 10,000 100,000 40,000 100,000 2) Explain briefly any TWO (2) accounting concept adopted in preparing the books of accounts. (5 marks) (4 marks) 3) Based on the above scenario classify any TWO (2) current asset and TWO (2) current liabilities. (4 marks)

Answer rating: 100% (QA)

1 Adiwarna Enterprise Trial Balance 30Jun20 Account Debit Credit Cash 33000 Inventory 14000 Motor Ve... View the full answer