Question
////////////////////////////////////////////(Please no handwriting answer)//////////////////////////////////// On 1st January 2017 the following balances has been extracted from the books of Thiren, a businessman who owned mini market
////////////////////////////////////////////(Please no handwriting answer)////////////////////////////////////
On 1st January 2017 the following balances has been extracted from the books of Thiren, a businessman who owned mini market at Ipoh, Perak.
Utilities, RM 615 (Dr.)
Packaging, RM 875 (Dr.)
During the year ended 31st December 2017, the information related to these two accounts are as follows:
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Utilities of RM 6, 780 were paid to cover the period from 1st May 2017 to 30th April 2018.
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RM 6, 751 was paid for the packaging bought.
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RM 924 was accrued on 31st December 2017 for packaging bought on credit base.
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Old packaging amounting to RM 215 were sold as scrap and Thiren received cash.
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Closing inventory of packaging was valued at RM 1, 157.
As an account personnel that has been appointed by Thiren, you are required:
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Show to Thiren the utilities expenses per month.
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Explain to Thiren what are other example of adjustment that Thiren need to perform at the end of accounting period.
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Prepare utilities account and packaging account to show appropriate amount to be transfer to the profit and loss account for the year ending 31st December 2017.
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Show the extract version of profit and loss account for the year ending 31st December 2017 to present the information related to packaging and utilities.
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