Question

Question 1      

Enter the following transactions in the ledger of Carriey Bakery and prepare a trial balance at 31 May, together with a calculation of the profit for the month and a statement of financial position at 31 May.

May     1          Started in business with RM1500 in the bank and RM500.

2          Purchased goods to the value of RM1750 from Burn Sdn Bhd, agreeing credit terms of 60 days.

3          Bought fixtures and fittings for the bakery for RM150, paying by cheque.

6          Bought goods on credit from Wonderful Ent. for RM115.

10        Paid rent of RM300 paying cash.

12        Bought stationery – cash book and invoices - for RM75 – paying by cash.

14        Sold goods on credit, value RM125, to Bakery Supplies.

20        Bought an old van for deliveries for RM2,000 on credit from MMT Sdn Bhd.

30        Paid wages of RM450 net for the month by cheque.

31        Summarized cash sales for the month and found them to be RM2500. Took a cheque for RM500 as own wages for the month. Banked RM2000 out of the cash sales over the month.

31        Closing inventory was RM500.

Answer 1

transactions in the ledger of Carriey Bakery as on 31st may :

cash a/c

date	particular	debit	credit
1 may	capital a/c	RM500
10 may	rent a/c		RM300
12 may	office supplies a/c		RM75
31 may	sales a/c	RM2500
31 may	bank a/c		RM2000
	total	RM3000	RM2375
31 may	closing balance		RM625

bank a/c

date	particular	debit	credit
1 may	capital a/c	RM1500
3 may	fixtures and fittings (fixed assets) a/c		RM150
30 may	wages a/c		RM450
31 may	drawing a/c		RM500
31 may	cash a/c	RM2000
	toatl	RM3500	RM1100
31 may	closing balance		RM2400

capital a/c

date	particular	debit	credit
1 may	bank a/c		RM1500
	cash a/c		RM500
	total	0	RM2000
31 may	closing balance	RM2000

purchase a/c

date	particular	debit	credit
2 may	Burn Sdn Bhd (creditors) a/c	RM1750
6 may	Wonderful Ent.(creditors) a/c	RM115
	total	RM1865	0
31 may	closing balance		RM1865

Burn Sdn Bhd (creditors) a/c

date	particular	debit	credit
2 may	purchase a/c		RM1750
	total	0	RM1750
31 may	closing balance	RM1750

fixtures and fittings (tangible assets) a/c

date	particular	debit	credit
3 may	bank a/c	RM150
	total	RM150	0
31 may	closing balance		RM150

Wonderful Ent.(creditors) a/c

date	particular	debit	credit
6 may	purchase a/c		RM115
	total	0	RM115
31 may	closing balance	RM115

rent a/c

date	particular	debit	credit
10 may	cash a/c	RM300
	total	RM300	0
31 may	closing balance		RM300

office supplies a/c

date	particular	debit	credit
12 may	cash a/c	RM75
	total	RM75	0
31 amy	closing balance		RM75

Bakery Supplies (debtors) a/c

date	particular	debit	credit
14 may	sales a/c	RM125
	total	RM125	0
31 may	closing balance		RM125

sales a/c

date	particular	debit	credit
14 may	Bakery Supplies (debtors) a/c		RM125
31may	cash a/c		RM2500
	total	0	RM2625
31 may	closing balance	RM2625

old van (tangible assets) a/c

date	particular	debit	credit
20 may	MMT Sdn Bhd (vendors) a/c	RM2000
	total	RM2000	0
31 may	closing balance		RM2000

MMT Sdn Bhd (vendors) a/c

date	particular	debit	credit
20 may	old van (tangible assets) a/c		RM2000
	total	0	RM2000
31 may	closing balance	RM2000

wages a/c

date	particular	debit	credit
30 may	bank a/c	RM450
	total	RM450	0
31 may	closing balance		RM450

drawing a/c

date	particular	debit	credit
31 may	bank a/c	RM500
	total	RM500	0
31 may	closing balance		RM500

Carriey Bakery

trial balance

at 31 May

particular	debit	credit
cash a/c	RM625
bank a/c	RM2400
capital a/c		RM2000
purchase a/c	RM1865
Burn Sdn Bhd (creditors) a/c		RM1750
fixtures and fittings (tangible assets) a/c	RM150
Wonderful Ent.(creditors) a/c		RM115
rent a/c	RM300
office supplies a/c	RM75
Bakery Supplies (debtors) a/c	RM125
sales a/c		RM2625
old van (tangible assets) a/c	RM2000
MMT Sdn Bhd (vendors) a/c		RM2000
wages a/c	RM450
drawing a/c	RM500
total	RM8490	RM8490

closing inventory was RM500. it is not shown in the trial balance.

calculation of profit by preparing income statement

particular	amount
sales revenue	RM2625
less: expenses-
cost of goods sold (RM1365)
rent   (RM300)
office supplies (RM75)
wages (RM450)	(RM2190)
profit	RM435

calculation of cost of goods sold:

opening inventory	0
add : purchase	RM1865
less : closing inventory	(RM500)
cost of goods sold	RM1365

Carriey Bakery

financial position

at 31 May

particular	amount
assets:
cash	RM625
bank	RM2400
fixtures and fittings (tangible assets)	RM150
Bakery Supplies (debtors)	RM125
closing inventory	RM500
old van (tangible assets)	RM2000
total assets	RM5800
liabilities:
Burn Sdn Bhd (creditors)	RM1750
Wonderful Ent.(creditors)	RM115
MMT Sdn Bhd (vendors)	RM2000
capital RM 2000
less: drawing (RM500)
add: profit RM435	RM1935
total liabilities	RM5800

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