Financial accounting... Internal use company

Tutorial Questions on Company Accounts-(Internal Use) Question 2 The following is the trial balance of Dellco Berhad as at 31 October 2019. CREDIT RM 000 DEBIT RM 000 600 400 900 800 1,400 450 Inventory at 31 October 2018 Land at cost Trade receivables and payables Building at cost Plant at cost Accumulated depreciation at 31 October 2018 Building Plant 9% Preference shares of RM 0.75 Ordinary shares of RM 1 Share premium Retained earnings at 31 October 2018 Provision for doubtful debts at 3hOctober 2018 Wages Sales Directors remuneration Utilities expenses Insurance Other expenses 9 % Debenture Interest on debenture Purchases Discounts Carriage inwards Asset revaluation reserves Bank balance 120 200 300 700 200 80 50 325 4,370 100 85 45 30 800 45 2,600 50 170 60 145 75 7,550 7,550 Bank balance 145 75 7,550 7,550 Additional information for the year ended 31 October 2019 (a) Closing inventory is valued at RM 155,000 (b) There were wages outstanding of RM 60,000 and insurance prepaid of RM 20,000 (c) Ordinary dividend was paid during the year but was classified as other expenses. (d) The provision for doubtful debts is to be made equal to 5% of outstanding debts. (e) Depreciation on building is provided at 5 % per annum on straight line method and for plant at 20% per annum using the reducing balance method. Tutorial Questions on Company Accounts - (Internal Use) The director wish to provide at the balance sheet date for (1) the preference dividend for the year (ii) debenture interest (ii) corporation tax of RM 40,000 (iv) audit fees of RM 55,000 Required Prepare the income statement for the year ended 31 October 2019 and balance sheet as at that date. (for internal use only) Question 3