The following is the trial balance for JOHN ENTERPRISE as at 31 December 2021: Debit (RM)...

 

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The following is the trial balance for JOHN ENTERPRISE as at 31 December 2021: Debit (RM) Accounts Purchases 38,220 13,720 Debtors Sales Capital Creditors Drawings Office equipment Bank Cash Inventory (1 January 2021) Accumulated depreciation - Office equipment Provision for doubtful debts (1 January 2021) Carriage inwards Carriage outwards Duties on purchases Returns Discounts Commission received 12% Loan from BTMB Maintenance and petrol expenses Advertising expenses Salaries and wages expenses Bad debts expenses Utilities expenses Rent expenses Insurance expenses Total 3,800 50,000 9,140 3,260 6,830 420 500 1,830 220 430 2,320 8,500 8,010 200 1,415 2,400 2,000 153,215 Credit (RM) 63,120 54,175 7,265 10,000 600 225 350 1,480 16,000 153,215 The following adjustments need to be considered: I. Included in the salaries and wages is an amount of RM600 paid for repairing John Enterprise's private residence. ii. The interest on loan from BTMB has not taken into account. The loan was made on 1 July 2021. iii. Rent paid of RM400 is for January 2022. iv. RM600 of the insurance is prepaid. v. RM250 of utilities has not been paid for the current year. vi. The provision for doubtful debts is to be adjusted to 5% of outstanding debtors. vii. Depreciation of office equipment is to be made based on estimation of 10 years useful life. May required to: Record all the adjustments needed for the above transactions in the ledgers by using the T- account format. The following is the trial balance for JOHN ENTERPRISE as at 31 December 2021: Debit (RM) Accounts Purchases 38,220 13,720 Debtors Sales Capital Creditors Drawings Office equipment Bank Cash Inventory (1 January 2021) Accumulated depreciation - Office equipment Provision for doubtful debts (1 January 2021) Carriage inwards Carriage outwards Duties on purchases Returns Discounts Commission received 12% Loan from BTMB Maintenance and petrol expenses Advertising expenses Salaries and wages expenses Bad debts expenses Utilities expenses Rent expenses Insurance expenses Total 3,800 50,000 9,140 3,260 6,830 420 500 1,830 220 430 2,320 8,500 8,010 200 1,415 2,400 2,000 153,215 Credit (RM) 63,120 54,175 7,265 10,000 600 225 350 1,480 16,000 153,215 The following adjustments need to be considered: I. Included in the salaries and wages is an amount of RM600 paid for repairing John Enterprise's private residence. ii. The interest on loan from BTMB has not taken into account. The loan was made on 1 July 2021. iii. Rent paid of RM400 is for January 2022. iv. RM600 of the insurance is prepaid. v. RM250 of utilities has not been paid for the current year. vi. The provision for doubtful debts is to be adjusted to 5% of outstanding debtors. vii. Depreciation of office equipment is to be made based on estimation of 10 years useful life. May required to: Record all the adjustments needed for the above transactions in the ledgers by using the T- account format.

Answer rating: 100% (QA)

Salaries and wages expences ac Dr Cr 2021 2021 Dec 31 Bal bf 8010 Dec 31 Drawings 600 31 Bal cf 7410 ... View the full answer