The following is the Trial Balance as at 30 June 2022 extracted from the general ledger...
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The following is the Trial Balance as at 30 June 2022 extracted from the general ledger of Kurma Madu Enterprise which involved in the trading of sweets products in Klang. The business is owned by Mr. Macho. Capital Loan from Singa Bank Bank overdraft Land and building Motor vehicles Office equipment Accumulated depreciation: Motor vehicles Office equipment Accounts receivable and Account payable Fixed deposit Cash in hand Allowance for doubtful debt Inventory as at 1 July 2021 Purchases and Sales Returns Transportation Discounts Interest on fixed deposit Rental received Commission received Salary expenses Motor vehicles expenses Interest on loan of Singa Bank Water and electricity Insurance expenses Telephone expenses Debit RM 450,000 360,000 170,000 6,700 32,000 4,200 11,600 41,200 1,600 500 800 4,700 3,400 2,750 850 7,000 1,600 1,098,900 Credit RM 838,550 70,200 6,800 54,000 17,000 9,500 1,100 87,330 2,100 1,200 3,700 4,800 2,620 1,098,900 Additional information: The company uses First-In-First-Out (FIFO) basis in valuing its inventories. The cost of inventory as at 30 June 2022 was RM14,600 and the net realizable value was RM14,800. 1. 2. 3. 4. 5. 6. 7. 8. 9. a) b) c) Telephone bills amounting to RM500 was still outstanding at the end of accounting period. d) Included in the total insurance paid, there was a payment of insurance in advance for two (2) months. Depreciation is to be provided at 5% per annum on book value for motor vehicles and 10% per annum on cost for office equipment. Part of interest on fixed deposit is yet to be received amounting to RM600. Inspection on sales invoice and receipts revealed that out of twelve debtors, only nine debtors managed to settle their accounts. Additional bad debts to be written off is RM530 using allowance method and allowance for doubtful debts is to be increased by RM50. Allowance for discount allowable was to be 10% of potential good debtors. Required to prepare: The owner had rented out part of the building to a tenant on 1 November 2021. On the same day, the tenant paid rental amounting to RM4,800 for eight (8) months until 30 June 2022. Mr. Macho had withdrawn RM1,800 worth of goods and RM400 cash for personal use and no record has been made in the account. The payment of principle loan from EON Bank and its interest for the month of December 2021 amounting to RM600 and RM250 respectively had been made on 28 December 2021. However, the transaction had not being recorded anywhere in the books. Trade receivables account (ledger). (5 marks) Allowance for doubtful debts and allowance for discount allowable (ledger). (5 marks) Statement of Profit or Loss for the year ended 30 June 2022. (Show all workings) (20 marks) Statement of Financial Position as at 30 June 2022. (Show all workings) (20 marks) The following is the Trial Balance as at 30 June 2022 extracted from the general ledger of Kurma Madu Enterprise which involved in the trading of sweets products in Klang. The business is owned by Mr. Macho. Capital Loan from Singa Bank Bank overdraft Land and building Motor vehicles Office equipment Accumulated depreciation: Motor vehicles Office equipment Accounts receivable and Account payable Fixed deposit Cash in hand Allowance for doubtful debt Inventory as at 1 July 2021 Purchases and Sales Returns Transportation Discounts Interest on fixed deposit Rental received Commission received Salary expenses Motor vehicles expenses Interest on loan of Singa Bank Water and electricity Insurance expenses Telephone expenses Debit RM 450,000 360,000 170,000 6,700 32,000 4,200 11,600 41,200 1,600 500 800 4,700 3,400 2,750 850 7,000 1,600 1,098,900 Credit RM 838,550 70,200 6,800 54,000 17,000 9,500 1,100 87,330 2,100 1,200 3,700 4,800 2,620 1,098,900 Additional information: The company uses First-In-First-Out (FIFO) basis in valuing its inventories. The cost of inventory as at 30 June 2022 was RM14,600 and the net realizable value was RM14,800. 1. 2. 3. 4. 5. 6. 7. 8. 9. a) b) c) Telephone bills amounting to RM500 was still outstanding at the end of accounting period. d) Included in the total insurance paid, there was a payment of insurance in advance for two (2) months. Depreciation is to be provided at 5% per annum on book value for motor vehicles and 10% per annum on cost for office equipment. Part of interest on fixed deposit is yet to be received amounting to RM600. Inspection on sales invoice and receipts revealed that out of twelve debtors, only nine debtors managed to settle their accounts. Additional bad debts to be written off is RM530 using allowance method and allowance for doubtful debts is to be increased by RM50. Allowance for discount allowable was to be 10% of potential good debtors. Required to prepare: The owner had rented out part of the building to a tenant on 1 November 2021. On the same day, the tenant paid rental amounting to RM4,800 for eight (8) months until 30 June 2022. Mr. Macho had withdrawn RM1,800 worth of goods and RM400 cash for personal use and no record has been made in the account. The payment of principle loan from EON Bank and its interest for the month of December 2021 amounting to RM600 and RM250 respectively had been made on 28 December 2021. However, the transaction had not being recorded anywhere in the books. Trade receivables account (ledger). (5 marks) Allowance for doubtful debts and allowance for discount allowable (ledger). (5 marks) Statement of Profit or Loss for the year ended 30 June 2022. (Show all workings) (20 marks) Statement of Financial Position as at 30 June 2022. (Show all workings) (20 marks)
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Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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