Preparation of Financial Statement with adjustments The following is the trial balance of Johnathan Sdn Bhd as
Question:
Preparation of Financial Statement with adjustments
The following is the trial balance of Johnathan Sdn Bhd as at 31st December 2020
Dr | Cr | |
RM | RM | |
Account Receivables | 60,000 | |
Accounts Payables | 40,000 | |
Accumulated depreciation – office fixtures | 20,000 | |
Accumulated depreciation – motor vehicle | 10,000 | |
Capital | 100,000 | |
Carriage Inwards | 1,000 | |
Carriage Outwards | 4,000 | |
Cash at bank and cash in hand | 56,000 | |
Commissions paid | 5,000 | |
Communication expenses | 8,000 | |
Drawings | 10,000 | |
Insurance | 9,000 | |
Inventories 1 January 2020 | 12,000 | |
Motor vehicles | 80,000 | |
Provision for doubtful debts | 1,000 | |
Purchases | 70,000 | |
Rental | 4,000 | |
Returns Outwards | 9,000 | |
Sales | 227,000 | |
Sundry Expenses | 2,000 | |
Vehicle Expenses | 11,000 | |
Wages and Salary | 15,000 | |
Fixtures | 60,000 | |
407,000 | 407,000 |
Notes to the accounts
- Inventory at year end was RM 40,000
- The provision for bad debts as of 31st December 2020 was RM1,200
- A 5% discount is to be given for credit sale RM8,000
- A cash sales transaction amounting to RM6,000 was omitted from the books
- Drawing during the year by cash amounted to RM5,000
- In the sundry expense account, payment for personal matters amounted to RM400
- Depreciation on Motor Vehicles was 10% per annum on the straight-line method.
- Depreciation on Fixtures was 5% per annum on the reducing balance method.
- Loan from Bank RM 40,000 on 1st July 2020 at an interest of 3% interest. Interest payment has been made.
- A posting error on communication expenses was wrongly recorded as follows:
Dr Bank 9,000 Cr Communication expenses RM 9,000