Question

In: Accounting

The trial balance of Protege Enterprise as at 31 December 2019 is as follows: Debit (RM)...

The trial balance of Protege Enterprise as at 31 December 2019 is as follows:

Debit

(RM)

Credit

RM)

Account receivables/payables

165,520

72,440

Carriage inwards

3,520

Inventory as at 1/1/2019

65,980

Carriage outwards

4,360

Discount allowed/received

2,680

60

Electricity and water

25,100

Loan from Maybank (long-term loan)

80,000

Return inwards/outwards

3,840

3,580

Bank

10,400

Premises

160,000

Motor vehicles

56,000

Furniture and fittings

27,600

Cash

2,160

Accumulated depreciation – Motor vehicles

20,160

Accumulated depreciation – Furniture and fittings

8,280

Salaries and wages

68,600

Bad debts

2,940

Rent received

7,500

Printing and stationeries

9,400

Drawings

3,560

Insurance expenses

18,200

Purchases/sales

592,380

844,300

Allowance for doubtful debts

5,920

Capital as at 1/1/2019

180,000

1,222,240

1,222,240

The following information needs to be taken into consideration:

  1. Depreciation are to be provided based on the following:

Motor vehicles – 20% on book value, yearly basis

Furniture and fittings – 10% on cost, yearly basis

  1. A portion of the business premise was rented out for RM1,500 per month starting from 1 September 2019.

  1. A debtor, Tania was declared a bankrupt in June 2019. The amount owed by him amounting to RM2,720 has not been adjusted yet.

  1. A debtor, Azeem paid RM740 cash for his debt which had been written off two years ago.

  1. It is the company policy of the firm to provide 5% allowance for doubtful debts on the outstanding account receivables.
  1. Maybank approved the loan in July 2019 and charged interest at the rate of 8% per annum.
  1. The amount of insurance premium paid is for a coverage period of 13months starting from August 2019.
  1. The expenses below are still outstanding as at year end:

Salaries and wages RM4,690

Electricity and water RM   710

  1. The owner had consumed some goods worth RM12,680 and withdrew cash RM1,000 for personal use.

  1. Inventory as at 31 December 2019 was RM69,900.

Required:

  1. Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019.

  1. Prepare a Statement of Financial Position as at 31 December 2019.

Solutions

Expert Solution

a.

Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019.   RM

Sales (844,300 - 3,840)     840,460 (Sales - Return inwards)

Cost of sales:

Opnening inventory 65,980

Purchase 592,380

Carriage inwards 3,520

Return outwards (3,580)

Closing inventory (69,900)

Total Cost of Sales (588,400)

Gross Profit : 252,060

Depreciation:

Motor Vehicle(Working 1) ( 7,168)

Furniture and fittings (2,760) ( Cost (27600)*10%)

Electricity and Water (25,810) (25,100 + 710accrued expense)

Rent Received 13,500 (7500+(1500*4))

Irreceverable debt received 740

Carriage outwards (4,360)

Salaries and wages (73,290) (68,600 + 4,690accrued expense)

Printing and stationaries (9,400)

Bad debts (5,660) (2940 + 2720Tania)

Alowance for receivable (Working 2) (2073)

Discount allowed (2,680)

Discount received 60

Insurence expense (7,000) (18200 * 5/13)

Operating profit 126,167

Interest (3,200) (80,000 * 8% *6/12)

Profit for the year 122,967

b.

Statement of Financial Position as at 31 December 2019

Non Current Asset

Motor Vehicle 56,000

Accumulated depreciation (20160+7168) 28,672

Furniture and fittings 27600

Accumulated depreciation (8280+2760) 16,560

Premises 160,000

Current Asset

Receivable 159,860

Allowance (7,993) 151,867

Inventory    (69,900 - 12,680drawings)    57,220

Prepaid Insurance 11,200

Cash (2,160-1,000drawings) 1,160

Bank 10,400

Total asset 437,079

Equity

Capita(01/01/2019) 180,000

Current profit 122,967

Drawings: Opening (3560)

Cash (1,000)

Inventory (12,680) 285,727

Non current liabilities

Loan from Maybank 80,000

Current liabilities

Account Payable 72,440

Accrued expense:

Salaries 4,690

Electric and water 710

Total euity and liabilty 443,567

Motor Vehicle Working 1

Cost 56,000

Accumulated dep (20,160)

Book value(01/01/2019)    35,840 (Cost - Acc Dep)

Current Depreciation ( 7,168)

Book value(31/12/2019) 28,672

Alowance for receivable (Working 2)

Opening allowance balance 5,920

Opening Receivable 165,520

Bad debts (5,660)

Receivable balance 159,860

Clossing allowance 5%    7,993 (159,860 *5% = 7993 )

Additional allowance charge   2,073 ( 7993 - 5920 )

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The following is the trial balance of AmazeRock Sdn. Bhd. as at 31 December 2019. Debit...
The following is the trial balance of AmazeRock Sdn. Bhd. as at 31 December 2019. Debit Credit RM RM Sales 1,077,000 Inventory as at 1 January 2019: Raw materials 16,000 Work-in-progress 11,000 Finished goods 32,000 Purchases of raw materials 720,000 Direct labour 60,000 Carriage inwards 2,000 Direct expenses - royalty 25,000 Factory rental 36,000 Utilities 40,000 Office rental 17,000 Factory supervisor salary 26,000 Administrative salaries 30,000 General administrative expenses 20,000 Plant and machinery 50,000 Office equipment 60,000 Accumulated depreciation as...
The unadjusted trial balance of Marin Inc. at December 31, 2017, is as follows: Debit Credit...
The unadjusted trial balance of Marin Inc. at December 31, 2017, is as follows: Debit Credit Cash $17,340 Accounts Receivable 106,100 Allowance for Doubtful Accounts $3,670 Inventory 61,700 Prepaid Insurance 4,599 Bond Investment at Amortized Cost 50,400 Land 28,100 Buildings 152,700 Accumulated Depreciation—Buildings 6,045 Equipment 34,800 Accumulated Depreciation—Equipment 5,800 Goodwill 16,750 Accounts Payable 101,100 Bonds Payable (20-year, 7%) 168,000 Common Shares 120,500 Retained Earnings 61,184 Sales Revenue 190,500 Rent Revenue 11,100 Advertising Expense 23,100 Supplies Expense 10,600 Purchases 97,900 Purchase...
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $...
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $ 265,100 Accounts receivable 51,000 Interest receivable 23,200 Notes receivable (due in 90 days) 173,000 Office supplies 15,500 Automobiles 173,000 Accumulated depreciation—Automobiles $ 55,000 Equipment 140,000 Accumulated depreciation—Equipment 28,000 Land 84,000 Accounts payable 97,000 Interest payable 50,000 Salaries payable 22,000 Unearned fees 34,000 Long-term notes payable 154,000 Common stock 35,580 Retained earnings 320,220 Dividends 53,000 Fees earned 584,000 Interest earned 32,000 Depreciation expense—Automobiles 27,500 Depreciation...
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $...
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $ 157,200 Accounts receivable 51,500 Interest receivable 18,600 Notes receivable (due in 90 days) 171,500 Office supplies 16,000 Automobiles 168,000 Accumulated depreciation—Automobiles $ 55,000 Equipment 140,000 Accumulated depreciation—Equipment 27,000 Land 81,000 Accounts payable 96,000 Interest payable 25,000 Salaries payable 26,000 Unearned fees 36,000 Long-term notes payable 154,000 Common stock 27,580 Retained earnings 248,220 Dividends 53,000 Fees earned 574,000 Interest earned 28,000 Depreciation expense—Automobiles 27,000 Depreciation...
Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019. DR. (RM)...
Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019. DR. (RM) CR. (RM) Account receivables 109,658 Buildings 1,372,680 Cash 1,314,264 Cost of goods sold 856,152 Equipment 504,000 Patent 60,276 Income tax expense 60,340 Inventory 551,950 Land 766,800 Maintenance and repair expenses 11,953 Office expense 14,086 Prepaid insurance 48,000 Property tax expense 1,680 Salaries and wages expenses 25,334 Sales returns and allowance 1,176 Accounts payable 36,936 Accumulated depreciation - buildings 137,268 Accumulated depreciation - equipment 252,000...
Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019. Dr. (RM)...
Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019. Dr. (RM) Cr. (RM) Account receivables              109,658 Buildings          1,372,680 Cash          1,314,264 Cost of goods sold              856,152 Equipment              504,000 Patent                60,276 Income tax expense                60,340 Inventory              551,950 Land              766,800 Maintenance and repair expenses                11,953 Office expense                14,086 Prepaid insurance                48,000 Property tax expense                  1,680 Salaries and wages expenses                25,334 Sales returns and allowance...
Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019. Dr. (RM)...
Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019. Dr. (RM) Cr. (RM) Account receivables              109,658 Buildings          1,372,680 Cash          1,314,264 Cost of goods sold              856,152 Equipment              504,000 Patent                60,276 Income tax expense                60,340 Inventory              551,950 Land              766,800 Maintenance and repair expenses                11,953 Office expense                14,086 Prepaid insurance                48,000 Property tax expense                  1,680 Salaries and wages expenses                25,334 Sales returns and allowance...
Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019. Dr. (RM)...
Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019. Dr. (RM) Cr. (RM) Account receivables              109,658 Buildings          1,372,680 Cash          1,314,264 Cost of goods sold              856,152 Equipment              504,000 Patent                60,276 Income tax expense                60,340 Inventory              551,950 Land              766,800 Maintenance and repair expenses                11,953 Office expense                14,086 Prepaid insurance                48,000 Property tax expense                  1,680 Salaries and wages expenses                25,334 Sales returns and allowance...
1) The adjusted trial balance of Williams Landscaping at December 31, 2019 is as follows:        ...
1) The adjusted trial balance of Williams Landscaping at December 31, 2019 is as follows:         Debit          Credit Cash $15,000 Accounts Receivable 30,000 Prepaid Insurance 7,500 Supplies 3,200 Land 40,000 Building 160,000 Accumulated Depreciation--Building $12,000 Equipment 75,000 Accumulated Depreciation--Equipment 8,500 Accounts Payable 12,000 Salaries Payable 2,000 Unearned Revenue 25,000 Mortgage Payable 100,000 Williams, Capital                 21,290 Williams, Withdrawals 23,000 Service Revenue 289,000 Salaries Expense 61,000 Depreciation Expense--Building and Equipment 6,150 Supplies Expense 14,040 Insurance Expense 14,000 Utilities Expense 20,900...
The adjusted trial balance for Marigold at December 31, 2019, contains the following accounts. Debit Credit...
The adjusted trial balance for Marigold at December 31, 2019, contains the following accounts. Debit Credit Buildings $128,100 Common Stock $93,550 Accounts Receivable 14,000 Retained Earnings 25,750 Prepaid Insurance 4,100 Accumulated Depreciation—Buildings 43,100 Cash 19,600 Accounts Payable 11,600 Equipment 62,000 Notes Payable 96,100 Land 68,500 Accumulated Depreciation—Equipment 17,400 Insurance Expense 500 Interest Payable 2,300 Depreciation Expense 6,600 Service Revenue 15,900 Interest Expense 2,300    $305,700 $279,950 Prepare a classified balance sheet; assume that $21,000 of the note payable will be...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT