Bukhary Enterprise has just completed his first year of trading selling tools equipment. He attempted to prepare a balance sheet from his trial balance before seeking expert as he having difficulty getting the balance sheet total to agree. The trial balance included a suspense account balance of RM10,000.00 This amount has not been entered on the financial position.

Bukhary Enterprise

Statement of Financial Position as at 31 December 2019

                                                                                                                        RM

Capital at 1 January 2019			136,175.00
Shop fittings			38,000.00
Drawings			71,201.00
Current liabilities Loan payable Trade receivable Accrual of expenses Cash at bank	52,000.00 3,740.00      160.00 2,140.00	58,040.00
Current assets Property Trade payables Prepayment of expenses	108,000.00     4,220.00        225.00	112,445.00	56,405.00 190,971.00
Closing inventories			31,517.00
Cash in hand			155.00
Profit for the year			52,423.00 84,095.00

Additional Information:

Examination of the records shows that adjustments should be made for the following items:

1. During the year tools equipment purchased for resale, that had cost RM3,500.00 has been entered into the shop fittings accounts.
2. Bukhary believes the shop fittings will have an economics life of 5 years and have an estimated residual value of RM2000.00.
3. The property should be depreciated by 5% using the straight – line method.
4. Bukhary had withdrawn RM75.00 in cash from the business for his own personal use. This transaction has not yet been accounted for.
5. A credit customer has ceased trading owing Bukhary RM1040.00 that will never be received.
6. The wages account has been overstated by RM10,000.00.
7. A credit supplier has issued a credit note RM55.00 for goods that have been damaged and this has not been entered into the books of account.

REQUIRED:

1. Prepare the necessary journal entries.                                                                 

2. Prepare an adjusted trial balance as at 31 December 2019.                               

3. Prepare a Statement of Profit or Loss for the period ended 31 December 2019.

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