QUESTION 3 Latifah is the owner of Lala Trading. Below is the trial balance extracted from the books of company as at 31 December 2018. Lala Trading Trial Balance as at 31 December 2018 Debit (RM) Credit (RM) Capital as at 1 January 2018 92,380 Inventories as at 1 January 2018 20,570 Furniture and fittings at cost 15,000 Office equipment at cost 10,500 Motor vehicle at cost 23,300 Accumulated depreciation- Furniture and fittings 9,000 Accumulated depreciation- Office equipment 4,200 Accumulated depreciation- Motor vehicle 2,330 Accounts receivable and accounts payable 75,370 26,500 Purchases and sales 68,700 104,100 Drawings 2,100 Return inwards and return outwards 1,100 950 Salaries expense 5,050 Electricity and water expense 1,770 Cash in hand 5,700 Cash at bank 27,200 10% MYB Bank loan 50,000 Allowance for doubtful debt as at 1 January 2018 2,500 Discount allowed and discount received Advertisement expense Commission received 500 400 8,900 1,500 10% fixed deposit Rent Petrol expense Insurance expense Carriage inwards Carriage outwards 25,000 3,000 4,000 750 2,000 600 750 297,860 297,860 dditional information: Inventories as at 31 December 2018 was valued at RM15,000. Depreciation for the year is to be provided as follows: Furniture and fittings 15% p.a Straight line method, yearly basis Office equipment 10% p.a Straight line method, yearly basis Motor vehicle 10% p.a Reducing balance method, yearly basis Bad debts of RM1,000 are to be written off and the allowance for doubtful debts is to be adjusted at 10% of net accounts receivables. k Cipta Universiti Teknologi MARA CONFIDENTIAL