a) The main purpose of accounting is to provide information to the users of an

organisation to make better decisions. Identify ONE external user and ONE
internal user of accounting information and for each user, indicate ONE
accounting information that might be useful to assist the decision-making.

Internal users
 Parties that have direct access to the resources of an entity and usually
involved in the management of the entity, for example the management of
the company which is assessing how management has discharged its
responsibility for protecting and managing the company’s resources.
External users
 Parties who do not have direct access to the resources of the company and
do not involve in the management of the entity, for example the
shareholders which is the right to know how a company is managing its
investments.
b) Puan Amanda Sofea commenced her legal practice known as Amanda & Co. on 1
November 2022.

DAT DESCRIPTION DEBIT(RM) CREDIT(RM)

E
NOV Cash RM 15000
1
Office equipment, bookshelf RM 6000
(Purchased bookshelf by cash) RM 9000

5 Office equipment RM 7500

Accounts Payable RM7500
(Purchased office equipment by credits)
8 Cash RM 1500
Service revenue RM 1500
(Cash received for services provided)
10 Account Payable RM 3500
Cash RM 3500
(Payment to account payable)
13 Account Receivable RM 4000
Service revenue RM 4000
(Received payment for services provided)
18 Drawings, Amanda RM 2000
Cash RM 2000
(Cash drawings by owner0
22 Cash RM 2500
Service revenue RM 2500
(Cash received for services provided)
30 Salary expenses RM 1200
Cash RM 1200
(Cash payment for salary expenses)
ASSIGNMENT 2 : (CLO2)
Below are unadjusted accounts’ balances for Warisan Trading as at 31 December 2022:

Accounts RM
Cash 62,400
Account receivables 196,350
Office supplies 16,200
Prepaid utilities 32,580
Prepaid insurance 25,200
Office equipment 44,040
Accumulated depreciation – office equipment 13,200
Unearned revenue 89,550
Capital 233,400
Service revenue 122,040
Salaries expense 54,000
Miscellaneous expense 27,420

The following items were found omitted at the end of the accounting period:
1. Office supplies on hand at 31 December 2022 amounted to RM7,050.
2. Prepaid insurance represented premiums paid on 1 April 2022 for a period of one
year.
3. Depreciation of office equipment based on the straight-line method. The office
equipment has 8 year estimated useful life with no salvage value.
4. Salaries expense for the month of December is RM4,500 and only be paid early 2023.
5. Unearned revenue on 31 December 2022 is RM63,750.
a) Prepare the adjusting entries on 31 December 2022.

DATE DESCRIPTION DEBIT (RM) CREDIT (RM)

31 Dec Supplies expenses 9150

Supplies 9150

31 Dec Insurance expenses 2100

Prepaid insurance 2100

31 Dec Depreciation expenses 5505

Accumulated 5505
Depreciation for office
equipment

31 Dec Salary Expenses 4500

Salary payable 4500

31 Dec Unearned revenue 25800

Revenue 25800
b) Prepare the income statement, statement of equity and balance sheet for Warisan
Trading.

Warisan Trading
Income Statement
for the month ended 31 December 2022

RM RM

Service revenue 122,040

Expenses:
Salary expenses 54,000
Miscellaneous expenses 27,420 (81,420)

Net profit 40,620

Warisan Trading
Statement of changes in owner’s equity
for the month ended 31 December 2022

RM

Opening Capital, 1 December 233,400

(+) Net profit 40620
Closing capital, 31Decembr 274020
 Warisan Trading
Balance sheet as at 31 December 2022

RM RM
Non-current Assets:
Office equipments 44,040
(-)Accumulated depreciation (13,200)
30,840

Current Assets:
Cash 62,400
Account Receivable 196,350
Prepaid insurance 25,200
Prepaid utilities 32,580
Office supplies 16,200
332,730

Less : Current liability:

Unearned revenue (89,550)
Net current assets 243,180
Net assets 274,020

Financed by:
Owner’s equity:
Capital 274,020