Sanasini Berhad (SB) is a company based in Pulau Pinang, offers interstate deliveries to and from...

 

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Sanasini Berhad (SB) is a company based in Pulau Pinang, offers interstate deliveries to and from anywhere in Peninsular Malaysia with their fleet of vans and trucks. The unadjusted trial balance of SB included the following accounts on 30 September 2022, the end of its accounting year: Accounts Land Office building Equipment Motor vehicle2 Accumulated depreciation: - Office building - Equipment - Motor vehicle2 Bank Accounts receivable Office supplies Prepaid insurance Ordinary share capital Property revaluation reserve Retained earnings Profit on sales of land Gain on revaluation of properties Service revenue Salary and wages expense Interest expense Fuel expense Vehicles repair and maintenance expense Utility expense Travelling expense Long term bank loan Unearned revenue Debit (RM) Credit (RM) 2,951,000 1,500,000 770,000 2,480,000 212,500 31,700 6,750 43,500 770,700 32,900 623,990 810,550 22,310 99,600 10,355,500 525,000 269,500 1,036,000 2,500,000 340,700 521,900 555,000 444,000 3,879,000 270,000 14,400 10,355,500 Additional information: 1. Motor vehicles are depreciated and 10% per annum and other assets are at 5% per annum. 2. The prepaid insurance includes RM7,500 premium paid for the months of October to December 2021 and RM36,000, 12-month insurance coverage made in January 2022. The physical count on office supplies showed a balance of RM1,500 in hand. 3. 4. The long-term bank loan was signed in year 2017 totaled RM500,000 with interest rate of 6% per annum. The company has two months installment in arrears. The interest related to the installment due was not recorded anywhere in the book. Additional information: 1. Motor vehicles are depreciated and 10% per annum and other assets are at 5% per annum. 2. The prepaid insurance includes RM7,500 premium paid for the months of October to December 2021 and RM36,000, 12-month insurance coverage made in January 2022. The physical count on office supplies showed a balance of RM1,500 in hand. The long-term bank loan was signed in year 2017 totaled RM500,000 with interest rate of 6% per annum. The company has two months installment in arrears. The interest related to the installment due was not recorded anywhere in the book. 3. 4. 6. 7. 3 5. Included in the unearned revenue, RM1,200 deposited by customers who expected to receive their parcels in October 2022, however the company managed to complete the deliveries on 30 September 2022. A vehicle repair bill amounted to RM2,820 received and remained unpaid. A bulk delivery of electrical goods was safely delivered at customer's warehouse on 30 September 2022 night and the RM1,680 bill has not yet received by the customer. The income tax expense was calculated to be RM433,000. REQUIRED: (a) Prepare the necessary adjusting and correcting entries for Sanasini Bhd. 8. A231 BKAR1013 (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 September 2022 according to MFRS 101 Presentation of Financial Statement using one statement format. (c) Prepare a Statement of Financial Position as at 30 September 2022 according to MFRS 101 Presentation of Financial Statement. (d) Describe TWO (2) reasons why adjusting entries are necessary. Sanasini Berhad (SB) is a company based in Pulau Pinang, offers interstate deliveries to and from anywhere in Peninsular Malaysia with their fleet of vans and trucks. The unadjusted trial balance of SB included the following accounts on 30 September 2022, the end of its accounting year: Accounts Land Office building Equipment Motor vehicle2 Accumulated depreciation: - Office building - Equipment - Motor vehicle2 Bank Accounts receivable Office supplies Prepaid insurance Ordinary share capital Property revaluation reserve Retained earnings Profit on sales of land Gain on revaluation of properties Service revenue Salary and wages expense Interest expense Fuel expense Vehicles repair and maintenance expense Utility expense Travelling expense Long term bank loan Unearned revenue Debit (RM) Credit (RM) 2,951,000 1,500,000 770,000 2,480,000 212,500 31,700 6,750 43,500 770,700 32,900 623,990 810,550 22,310 99,600 10,355,500 525,000 269,500 1,036,000 2,500,000 340,700 521,900 555,000 444,000 3,879,000 270,000 14,400 10,355,500 Additional information: 1. Motor vehicles are depreciated and 10% per annum and other assets are at 5% per annum. 2. The prepaid insurance includes RM7,500 premium paid for the months of October to December 2021 and RM36,000, 12-month insurance coverage made in January 2022. The physical count on office supplies showed a balance of RM1,500 in hand. 3. 4. The long-term bank loan was signed in year 2017 totaled RM500,000 with interest rate of 6% per annum. The company has two months installment in arrears. The interest related to the installment due was not recorded anywhere in the book. Additional information: 1. Motor vehicles are depreciated and 10% per annum and other assets are at 5% per annum. 2. The prepaid insurance includes RM7,500 premium paid for the months of October to December 2021 and RM36,000, 12-month insurance coverage made in January 2022. The physical count on office supplies showed a balance of RM1,500 in hand. The long-term bank loan was signed in year 2017 totaled RM500,000 with interest rate of 6% per annum. The company has two months installment in arrears. The interest related to the installment due was not recorded anywhere in the book. 3. 4. 6. 7. 3 5. Included in the unearned revenue, RM1,200 deposited by customers who expected to receive their parcels in October 2022, however the company managed to complete the deliveries on 30 September 2022. A vehicle repair bill amounted to RM2,820 received and remained unpaid. A bulk delivery of electrical goods was safely delivered at customer's warehouse on 30 September 2022 night and the RM1,680 bill has not yet received by the customer. The income tax expense was calculated to be RM433,000. REQUIRED: (a) Prepare the necessary adjusting and correcting entries for Sanasini Bhd. 8. A231 BKAR1013 (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 September 2022 according to MFRS 101 Presentation of Financial Statement using one statement format. (c) Prepare a Statement of Financial Position as at 30 September 2022 according to MFRS 101 Presentation of Financial Statement. (d) Describe TWO (2) reasons why adjusting entries are necessary.

Answer rating: 100% (QA)

a Adjusting and correcting entries 1 Depreciation expense buildings 120 RM1500000 RM75000 Depreciation expense equipment 15 RM2480000 RM496000 Depreciation expense motor vehicles 110 RM3 516000 RM3516... View the full answer