In your audit of Najeha Sdn Bhd for year ended 30 September 2020. you have found a number of matters that you believed represent possible adjustments to the company's books. The possible adjustment are as follows: 1. 2. 3. The allowance for uncollectible accounts indicates that it may be understated by RM50.000 Several credit memos that were processed and recorded after year end relate to sales and accounts receivable for current year amounted to RM30,000. Inventory cut-off tests indicate that RM45,000 of inventory received on 30 September 2020 was recorded as purchases and accounts payable for following accounting period. These items were included in the inventory count at year end. Inventory cut-off tests also indicate several sales invoices recorded in current year books is actually for goods that were shipped in early October 2020. The goods were included in inventory even though they were set aside. The amounts of these shipments is RM63.000 Expenses totalling RM25,000 associated with the maintenance of equipment were inappropriately debited to the equipment account. 4. 5. Required: Determine the adjustment that you believed must be made for Najeha Sdn Bhd's financial statements to be fairly presented. Please include the amounts and accounts affected by each adjustment by using the format below: Posible Adjustments - Dr ICR Non- Current Current Llabilities Llabilities A/C Dr. A/C Cr. Total Amount Non- Current Assets Current Ascets Decoription Income Expencer RUEDO (RM500) RM500 Dr Decount allowed Unrecorded discount allowed (Example) Or Account Receivables 1 2. Total In your audit of Najeha Sdn Bhd for year ended 30 September 2020. you have found a number of matters that you believed represent possible adjustments to the company's books. The possible adjustment are as follows: 1. 2. 3. The allowance for uncollectible accounts indicates that it may be understated by RM50.000 Several credit memos that were processed and recorded after year end relate to sales and accounts receivable for current year amounted to RM30,000. Inventory cut-off tests indicate that RM45,000 of inventory received on 30 September 2020 was recorded as purchases and accounts payable for following accounting period. These items were included in the inventory count at year end. Inventory cut-off tests also indicate several sales invoices recorded in current year books is actually for goods that were shipped in early October 2020. The goods were included in inventory even though they were set aside. The amounts of these shipments is RM63.000 Expenses totalling RM25,000 associated with the maintenance of equipment were inappropriately debited to the equipment account. 4. 5. Required: Determine the adjustment that you believed must be made for Najeha Sdn Bhd's financial statements to be fairly presented. Please include the amounts and accounts affected by each adjustment by using the format below: Posible Adjustments - Dr ICR Non- Current Current Llabilities Llabilities A/C Dr. A/C Cr. Total Amount Non- Current Assets Current Ascets Decoription Income Expencer RUEDO (RM500) RM500 Dr Decount allowed Unrecorded discount allowed (Example) Or Account Receivables 1 2. Total
