Question 1

Venture Trading provided the following information as at 31 December:

Trade Receivables : RM 71,800

Allowance for doubtful debts (b/d) : RM 2,600

There are further debts amounting to RM840 to be written off. Allowance for doubtful debts for the year end 31 Dec is RM3,548.

What are the amounts of Doubtful Debts in the Statement of Profit or Loss and Allowance for Doubtful Debts in the Statement of Financial Position at year end? - ( Prepare both financial statement )

Question 2

The following is an extract of the Statement of Financial Position of Gaya Sdn Bhd:

Statement of Financial Position (extract) as at 31 May 2017

Current assets

Prepaid advertising expenses : RM 1,280

Accrued rental received : RM 2,000

Current liability

Unpaid electricity expenses : RM120

Receipts and payments account (extract) for the year ended 31 May 2018

Receipts

Rent received : RM10,000

Payments

Advertising : RM 600

Electricity : RM 1,000

Additional information:

1. Advertising in arrears as at 31 May 2018 amounted to RM200

2. Electricity bill of RM150 has been paid in advance as at 31 May 2018

3. According to the rental agreement, the monthly rental is RM1,000 per month. As at 31 May 2018, 4 months' rental has yet to be received.

Required:

Prepare and balance off the following accounts for the year ended 31 May 2018:

(a) Prepaid advertising expenses account

(b) Advertising expenses account

(c) Accrued advertising account

(d) Accrued rental received account

(e) Rental received account

(f) Accrued electricity account

(g) Electricity account

(h) Prepaid electricity account

Question 3

The Trial Balance for Ravi as at 31 March is as follows:

Bank 1,500 Accumulated depreciation:motor vehicle 1,200 Capital at 1 February (b/d) 19,700 Drawings 11,700 73,550 73,550 At 31 March there was: i. Inventory valued at 31 March at cost prices RM9,100 ii. Rent of RM400 not yet paid iii. Insurance inclusive RM300 paid in advance iv. Commission of RM350 not yet received for the month of March V. 15 months rental was received which inclusive 3 months deposit vi. The motor vehicle is to be depreciated at 20% at cost which amounting to RM1,800.The Trial Balance for Ravi as at 31 March is as follows: DR CR RM RM Inventory 1 February (b/d) 8,200 Purchases and Sales 26,000 40,900 Rent 4.400 Insurance 1,600 Salary 9.990 Motor vehicle at cost 9.000 Commission received 3,650 Rental received 6,000 Trade receivables and payables 1.160 2,100