TUTORIAL QUESTION

Question 1
A trial balance of Salmi Enterprise as at 31 December 2019 is shown below:
Salmi Enterprise
Trial balance as at 31 December 2019
Debit Credit
(RM) (RM)
Cash 12,700
Accounts receivables 18,800
Inventory (1 January 2019) 45,000
Land 46,000
Buildings 98,500
Accumulated depreciation - Building 27,000
Equipment 41,750
Accumulated depreciation - Equipment 21,200
Bank loan 10,000
Accounts payable 34,500
Capital 133,900
Drawings 5,000
Sales 452,050
Purchases 354,400
Carriage inwards 550
Discount allowed 3,050
Salary expenses 34,900
Utility expense 9,700
Repair expense 2,950
Petrol expense 3,600
Insurance expense 1,750
Total 678,650 678,650
Additional information:
i) Depreciations for the building and equipment are RM5,000 and RM4,500
respectively.
ii) Ending inventory as at 31 December 2018 is RM44,450.
iii) Interest on bank loan of RM200 which is due on 31 December is not yet
paid.
iv) Unpaid salary for the month of December is RM5,500.
v) Prepaid insurance is RM1,000
vi) Accrued utility expenses as at 31 December is RM2,700.
vii) In December, the company purchase a motor vehicle at a purchase price
of RM25,000. The delivery cost incurred by the company was RM1,000.
This transaction has not been recorded.
Required:
a) Prepare a statement of Profit or Loss for the year ended 31 December 2019.

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

Question 2
Aini Trading owned by Amirul is a sole trader company who engaged in supplying cookies and
biscuits all around Malaysia. The followings are the shop’s trial balance as at 31st December
2024.

Debit Credit

RM RM

Inventories as at 1 January 2024 25,000

Carriage inwards 3,000

Return 12,000 11,800

Purchases and Sales 150,000 254,000

Motor vehicles at cost 40,000

Equipment at cost 120,000

Discounts 5,700 9,200

Import duties on purchase of inventories 4,400

Interest on 10% fixed deposit 4,583

Commissions 4,100 6,300

Electricity expenses 15,100

Advertising expenses 18,700

Drawing 6,550

Interest on loan – Islamic Bank 2,800

Account receivable and account payable 46,000 27,017

10% fixed deposit 50,000

Cash in hand 2,050

Cash at bank 36,000

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 Capital 138,500

Loan from Islamic Bank 80,000

Accumulated depreciation as at 1 January 2024

Motor vehicles 8,000

Equipment 2,000

541,400 541,400

The following adjustment are to be considered before the financial statements are
prepared on 31 December 2024:

1. Inventories at the end of the year was RM56,000.

2. During the year, Amirul has constantly taken goods from her shop RM100 per month
for personal use. No record was made for this transaction.

3. The business has not paid RM400 for electricity bill and RM2,300 for advertising
expenses.

4. Bad debt is RM200 and the provision for doubtful debt during the year is to be allocated
at 10%.

5. One-month interest on 10% fixed deposit has yet to be received by the business.

6. The bank loan was taken in January 2024 with an interest rate of 5% per annum.

7. Depreciation on motor vehicles is 25% on the reducing balance method and equipment
is 10% on straight line basis.

8. Unrecorded in the ledger is the purchase of new machine at a cost RM15,000. The
installation of the office equipment is RM200, the delivery RM300, and the
administrative expenses incurred is RM250. The training incurred for the employee to
run the machine is RM5,000.

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9. A cash payment of RM360 for an advertising expense was wrongly recorded as RM630
in advertising account.

10. A cheque of RM500 for the commission paid was correctly entered in the bank account
but incorrectly entered in the electricity expenses.

Required:

(a) Prepare the Statement of Profit or Loss for Aini Trading for the year ended 31
December 2024.

(b) Prepare the Statement of Financial Position for Mama Trading as at 31 December
2024.
(Note: all workings must be shown)

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Question 3
The following trial balance has been extracted from the ledger of Azwin, a sole trader
as at 31 May 2019, the end of her most recent financial year.
Debit (RM) Credit (RM)

Property, at cost 90,000

Equipment ,at cost 57,500
Accumulated depreciation (as at 1 June 2018)
- Property 12,500
- Equipment 32,500
Inventories as at 1 June 2018 27,400
Purchases 259,600
Sales revenue 405,000
Discount allowed 3,370
Discount received 4,420
Wages and salaries 52,360
Bad debts 1,720
Loan interest 1,560
Carriage outwards 5,310
Other operating expenses 38,800
Trade receivables 46,200
Trade payables 33,600
Provision for doubtful debts 280
Cash 151
Bank overdraft 14,500
Drawings 28,930
13% long term loan 12,000
Capital 98,101
612,901 612,901

The following additional information as at 31 May 2019 is available:

i. Inventories as at the close of business were valued at RM25,900.

ii. Depreciation for the year ended 31 May 2019 has yet to be provided as follows:
Property : 1% using straight line method.
Equipment :15% straight line method

iii. Wages and salaries are accrued by RM140.

iv. ‘Other operating expenses’ include certain expenses prepaid by RM500.

v. The provision for doubtful debts is to be adjusted so that it is 0.5 percent of

trade receivables as at 31 May 2019.

vi. ‘Purchases’ include goods valued at RM1,040 that were withdrawn by Azwin
for her own personal use.

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vii. During the year, new employee has wrongly recorded RM80 discount allowed
as discount received.

Required:

a) Prepare a Statement of Profit or Loss for the year ended 31 May 2019.
b) Prepare a Statement of Financial Position (Balance Sheet) as at 31 May 2019.

Question 4
The following trial balance was extracted from the books of Maya Boutique as at 31
December 2019.
Debit Credit
RM RM
Beginning inventory 40,000
Sales and purchase return 4,000 6,000
Carriage inwards 7,000
Duty on purchases 5,600
Carriage outwards 4,400
Purchases and sales 160,000 300,000
Discount received 6,400
Insurance on purchases 5,400
Commission received 4,600
Shop rental 28,000
salary 33,000
Salesman commission 2,600
Discount allowed 5,200
Interest expense 5,000
Provision for doubtful debts 1,000
Accumulated depreciation:
- Delivery van 28,000
- Costumes cabinet
- Office equipment 12,000
10,000

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 Delivery van 70,000
Costumes cabinet 60,000
Office equipment 100,000
Accounts receivables (Assets) 50,000
Accounts payable 40,000
Telephone and electricity 10,000
Insurance 9,000
Cash at bank 50,000
Petty cash 3,000
Loan from bank (10% per annum) 100,000
Drawings 600
Capital 144,800
652,800 652,800

The following adjustments needs to be considered:

a) The shop rental is RM1,000 per month. It was paid in advance for two months.
b) Salary for fashion designer amounting to RM1,500 still unpaid.
c) One of the customers was declared bankrupt and unable to settle his debts.
The customer still owed RM2,000.
d) An annual depreciation needs to be provided as follows:
Delivery van 20% on cost
Costumes cabinet 10% on reducing balance method
Office equipment 10% on cost
e) Ms Mayalini the owner, withdrew petty cash of RM100 and took a dress
amounting to RM200 for her daughter’s birthday.
f) Inventory as at 31 December 2019 was RM16,000.

Required:
a) Prepare the financial statement for the year ended 31 December 2019.

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Question 5
The following Trial Balance was extracted from the books of Barakah Book Store as
at 31 August 2018.
Debit (RM) Credit
(RM)
Purchases 38,220
Account Receivables 13,720
Sales 63,120
Capital 59,175
Account Payables 7,265
Drawings 3,800
Office Equipment 24,500
Delivery van 18,300
Fixtures & fittings 7,200
Advertising 8,500
Cash 8,260
Maintenance & Petrol 2,320
Salaries & Wages 8,010
Bad debts 200
Carriage inwards 420
Carriage outwards 500
Electricity, Water & Telephone 1,220
Duties on Purchases 1,830
Return inwards 220
Return outwards 225
Inventories 1 September 2017 6,830
Accumulated depreciation; 1 Sept. 2017:
Delivery Van 2,745
Fixtures and Fittings 2,160
Office Equipment 4,900
Commission received 1,480
12% loan from Bank Rakyat (taken on 1 Jan 16,000
2018.) 2,400 1,400
Rent 2,000
Insurance 10,540
Bank 430 350
Discounts
Provision for doubtful debts; 1 Sept 2017 600

159,420 159,420

The following adjustments need to be considered:

1. Inventories as at 31 August 2018 was valued at RM5,200.

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2. The The owner had taken RM600 cash for repairing of her house.
3. interest on loan from Bank Rakyat had not been taken into account.
4. RM600 of the insurance was prepaid.
5. RM250 of the electricity, water and telephone has not been paid for the current
year.
6. Additional bad debts of RM220 are to be written off.
7. The provision for doubtful debts is to be adjusted to 5% of outstanding account
receivables.
8. Depreciation is to be provided as follows:
• Office equipment - 25% straight line method.
• Delivery van - 20% reducing balance method.
• Fixtures and fittings have 5 years of useful life after which the scrap value
is RM500.
Required:

a) Prepare Statement of Profit and Loss for the year ended 31 August 2018.
b) Prepare a Statement of Financial Position as at 31 August 2018.