The Balance Sheet of Syarikat Siti Ayu at at 31 December 2019 shows as below:

 

DESCRIPTION	RM
Cash	11,270
Debtor	20,900
Provision for bad debts	400
Inventory	52,318
Equipment	25,400
Provision for depreciation	7,620
Creditor	18,076
Loans	19,000
Capital	59,714
Drawings	18,216
Sales	108,416
Cost of Sales	58,900
Emoluments	18,920
Interest	1,852
Bad debts	650
Rent	4,800
	426,452

 

Additional Info:

1. A physical inspection on 31 December 2019 found that the inventory value was RM51,987.
2. Depreciation of equipment is at a rate of 15% per year using the straight line method.
3. Sales include an amount of RM4,520 that has been received from the customer but the goods have not been delivered.
4. Emoluments accrued amounting to RM422.
5. Bad debt written off is RM650 but wrongly debited to bad debt expense. Bad debt provision is at a rate of 4% per annum.

 

Required:

1. Adjustment Journal based on additional information.
2. Trial balance on December 31, 2019 after the adjustment journal.

Answer rating: 100% (QA)

Here are the adjustment journal entries and the adjusted trial balance as of December 31 2019 Adju... View the full answer