PRINCIPLES OF ACCOUNTING SEMESTER SESSION 2011/20 Question 3 The following trial balance has been extracted lodgers of Sherry Enterprise, store owner. Trial Balance as at 31 December 20211 Dr (RM) Sales Cr (RM) 400,000 Purchases 350,000 Returns Inwards 5,000 Returns outwards 6,200 Opening inventory at 1 January 100,000 2021 Provision for doubtful debts 800 Wages and salaries expenses 30,000 Rent expenses 6,000 Telephone expenses Shop fittings at cost 1,000 40,000 Van at cost Debtors and creditors 30,000 9,800 7,000 Bad debts 200 Capital Cash at bank Drawings 179,000 3,000 18,000 593,000 593,000 The following additional information as at 31 December 2021 is available: L Closing inventory at 31 December 2021, RM100,000. iv. V. Wages amounting RM5,000 still remained unpaid and prepaid rent during the year was equal to RM500. The provision for doubtful debts to be increased to 10 per cent of debtors. Telephone bill outstanding RM320 still remained unpaid. Depreciation is to be provided on the following basis: Required: a) b) Shop fittings at 10% on cost Van at 7% on cost. Record the transactions, as given in the additional information No. 2 until No. 5, in a journal (Note: Explanation is NOT required). (6 Marks) Prepare a Statement of Profit or Loss for the year ended 31 December 2021, Prepare a Statement of Financial Position for the year ended 31 December 2021. (16 Marks) END OF QUESTION PAPER (18 Marks) [Total: 40 Marks]