Idzqar runs a small motor accessories and workshop, Cekal Jaya in Bukit Dagang. It has been...

  

Transcribed Image Text:

Idzqar runs a small motor accessories and workshop, Cekal Jaya in Bukit Dagang. It has been operating for two years. The following Trial Balance was drawn up at 31 December 2020. Trial Balance as at 31 December 2020 Particulars Debit (RM) Motor vehicles Machines and equipment Bank Cash Accounts Receivable/Accounts Payable Inventory 1 January 2020 Purchases/Sales Returns Inwards/Returns Outwards Utilities Rent Salaries Insurance Advertising Petrol and transport Interest on loan Commission received Bad debts Accumulated Depreciation: - Motor Vehicles - Machines and equipment Capital Loan from CIMB Drawings 65,000 20,000 18,900 2,300 3,900 22,100 68,200 6,100 3,500 36,000 72,000 26,000 18,800 4,120 160 180 10,600 377,860 Credit (RM) 3,300 273,400 4,700 4,160 12,000 3,000 69,300 8,000 377,860 Additional Information: 1. 2. 3. 4. 5. 6. 7. 8. Required: Inventory as at 31 December 2020 was RM24,500. Insurance paid during the year included amount of RM2,000 for January 2021. Utilities for December 2020, RM330 was still unpaid. RM600 of commission received was received in advance. Depreciation is calculated on the following basis: Motor vehicles are depreciated at 10% per annum of the carrying value. Machines and equipment are depreciated at 15% per annum on cost. During the year, Idzqar had taken out some motor accessories of RM230 from the shop for personal use and had not recorded it. Allowance for doubtful debts is to be provided at 6% of debtors. Interest on loan was 4% per year and interest for the second half-year was still accrued. 1) ii) a) Use worksheet to show adjustments and adjusted trial balance as at 31 December 2020. (13 marks) Attachment 1 Accounts Motor vehicles Machines and equipment Bank Cash Accounts Receivable Accounts Payable Inventory 1 January 2020 Purchases Sales Returns Inwards Returns Outwards Utilities Rent Salaries Insurance Advertising and marketing Petrol and transport Interest on loan Commission received Bad debts Accumulated Depreciation: motor vehicles Unadjusted Trial Balance RM 65,000 20,000 18,900 2,300 3,900 22,100 68,200 6,100 3,500 36,000 72,000 26,000 18,800 4,120 160 180 RM 3,300 273,400 4,700 4,160 Worksheet 12,000 Adjustment RM RM Adjusted Trial Balance RM RM Idzqar runs a small motor accessories and workshop, Cekal Jaya in Bukit Dagang. It has been operating for two years. The following Trial Balance was drawn up at 31 December 2020. Trial Balance as at 31 December 2020 Particulars Debit (RM) Motor vehicles Machines and equipment Bank Cash Accounts Receivable/Accounts Payable Inventory 1 January 2020 Purchases/Sales Returns Inwards/Returns Outwards Utilities Rent Salaries Insurance Advertising Petrol and transport Interest on loan Commission received Bad debts Accumulated Depreciation: - Motor Vehicles - Machines and equipment Capital Loan from CIMB Drawings 65,000 20,000 18,900 2,300 3,900 22,100 68,200 6,100 3,500 36,000 72,000 26,000 18,800 4,120 160 180 10,600 377,860 Credit (RM) 3,300 273,400 4,700 4,160 12,000 3,000 69,300 8,000 377,860 Additional Information: 1. 2. 3. 4. 5. 6. 7. 8. Required: Inventory as at 31 December 2020 was RM24,500. Insurance paid during the year included amount of RM2,000 for January 2021. Utilities for December 2020, RM330 was still unpaid. RM600 of commission received was received in advance. Depreciation is calculated on the following basis: Motor vehicles are depreciated at 10% per annum of the carrying value. Machines and equipment are depreciated at 15% per annum on cost. During the year, Idzqar had taken out some motor accessories of RM230 from the shop for personal use and had not recorded it. Allowance for doubtful debts is to be provided at 6% of debtors. Interest on loan was 4% per year and interest for the second half-year was still accrued. 1) ii) a) Use worksheet to show adjustments and adjusted trial balance as at 31 December 2020. (13 marks) Attachment 1 Accounts Motor vehicles Machines and equipment Bank Cash Accounts Receivable Accounts Payable Inventory 1 January 2020 Purchases Sales Returns Inwards Returns Outwards Utilities Rent Salaries Insurance Advertising and marketing Petrol and transport Interest on loan Commission received Bad debts Accumulated Depreciation: motor vehicles Unadjusted Trial Balance RM 65,000 20,000 18,900 2,300 3,900 22,100 68,200 6,100 3,500 36,000 72,000 26,000 18,800 4,120 160 180 RM 3,300 273,400 4,700 4,160 Worksheet 12,000 Adjustment RM RM Adjusted Trial Balance RM RM

Answer rating: 100% (QA)

To complete the worksheet and to show the adjusted trial balance as of 31 December 2020 we need to make the following adjustments based on the additional information provided 1 Inventory Inventory as ... View the full answer