Question
PART B QUESTION 1 The following trial balance was extracted from the books of Happy Trading as at 31 December 2021. Particulars Particulars Debit (RM)
PART B
QUESTION 1
The following trial balance was extracted from the books of Happy Trading as at 31 December 2021. Particulars
Particulars | Debit (RM) | Credit (RM) |
Sales | 298,000 | |
Purchases | 250,000 | |
Return outwards | 16,500 | |
Return inwards | 11,000 | |
Discounts | 4,550 | 2,500 |
Carriage expenses | 9,000 | |
Duty on purchases | 2,300 | |
Inventory as at 1 January 2021 | 36,000 | |
Salary expenses | 20,500 | |
Advertisement expenses | 5,600 | |
General expenses | 1,000 | |
Stationary | 300 | |
Utilities expenses | 11,700 | |
Interest on loan | 800 | |
Rental received | 3,000 | |
Rental received | 3,000 | |
Commission received | 4,000 | |
Allowance for doubtful debt 1 January 2021 | 1,500 | |
3% loan from Bank Rahmat | 50,000 | |
Accounts payable | 23,000 | |
Accounts receivable | 22,500 | |
Furniture and Fittings | 60,000 | |
Motor vehicles | 95,000 | |
Machinery | 60,000 | |
Investment | 83,000 | |
Accumulated depreciation as at 1 January 2021: | ||
Motor vehicles | 22,500 | |
Machinery | 12,000 | |
Cash in hand | 10,950 | |
Cash at bank | 20,200 | |
Drawings | 5,000 | |
Capital | 296,000 | |
Insurance expenses | 2,500 | |
Repairs and maintenance | 4,500 | |
Patents | 12,600 | |
729,000 | 729,000 |
Additional information: 1. Inventory as at 31 December 2021 was valued at RM22,000.
2. The bank loan was approved on January 2021 and part of the interest on loan was still outstanding as at 31 December 2021.
3. One of the credit customers owing RM800 was declared bankrupt and the debt needs to be written off. Allowance for doubtful debt is to be adjusted to 2% on the remaining accounts receivable.
4. Depreciations for the year are to be provided as follows: Motor vehicles -20% per annum on cost, yearly basis Furniture and Fittings -15% per annum on cost, yearly basis Machinery -10% per annum on carrying amount, yearly basis
5. During the year, the owner took goods worth RM700 for his personal use.
6. The following were prepayments as at 31 December 2021: Prepaid salary expenses RM6,500 Prepaid commission received RM2,000
7. Utilities bill for the month of December 2021 of RM250 was not yet paid.
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