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.