Ccontinuation of question 1

Question 1 (a) An inexperienced book-keeper has drawn up an incorrect and unadjusted trial balance as at 30 July 2020. Debit Credit RM RM Return Outwards 13,000 Machinery 34.000 Salaries 17.200 Trade payables 33,000 Cash in hand 40,000 Carriage inwards 6.000 Rent received 3.000 Discount allowed 2,000 Purchases 100,000 Other payables 20,000 Trade receivables 15,000 Carriage out wards 5.000 Capital 63,200 Building 18,000 Return Inwards 3.000 Discount Received 14,000 Insurance expenses 6.000 Sales 130.000 Furniture 30,000 274,200 278,200 Required: Prepare the Corrected Trial Balance. (8 marks)(b) Additional information (Continued from (a) above): I. Depreciation on furniture to be charged at 10% on cost, not recorded yet in the books. 2. A credit purchases of RM5,000 from a trade supplier was not recorded in the books, the invoice was missed out. 3. A drawings of RM8,000 of cash in hand was not yet recorded in the cash book and the drawings account. Required: Show the adjusted entries as it would appear in the corrected trial balance. (6 marks) (c) Use the following account balances to prepare the Statement of Profit or Loss for the year ended 31 July 2020. RM RM Sales 125.500 Inventories as at I July 2020 13,500 Capital 15.000 Purchases 70,000 Return inward 1 1,500 Return outwards 8,000 Direct wages 1.100 Office Rental 800 Other payables 1.200 Trade receivables 700 Insurance 200 Distribution expenses 150 Printing 80 3 /5 I. Inventories as at 31 July 2020 is RM20,000. (14 marks) [Total: 28 marks]