The following accounts are taken from the book of GGGG books as at 31 December 2019. Use the following information to prepare the trial balance as at 31 December 2019.

	RM
Purchases	26,000
Sales	33,690
Capital	150,000
Cash in hand	52,000
Opening inventory	5,600
Debtors	70,910
Furniture	10,000
Creditors	1,900
Office equipment	16,000
Wages	1,780
Interest	230
Interest received	4,900
Rental	18,000
Machineries	30,000
Commission	190
Cash at bank	53,200
Loan	100,000
Utilities bills	120
Drawings	5,600
Advertisement	360
Insurance	500
	580,980

GGGG Books
Trial Balance
As on 31st December 2019
	Debit	Credit
Purchase	26,000
Sales		33,690
Capital		150,000
Cash in hand	52,000
Opening inventory	5,600
Debtors	70,910
Furniture	10,000
Creditors		1,900
Office equipment	16,000
Wages	1,780
Interest	230
Interest received		4,900
Rental	18,000
Machineries	30,000
Commission	190
Cash at bank	53,200
Loan		100,000
Utilities bills	120
Drawings	5,600
Advertisement	360
Insurance	500
Total	290,490	290,490

1. 3 Depreciation

• The total life of furniture is 5 years with RM 1,000 salvage value.
• Depreciation on office equipment at 10% based on straight line method.
• Depreciation on machineries at the end of the year at 10% based on straight line method.

1. 3 Bad debts and allowance for doubtful debts

• Bad debts written off during the year is RM 500.
• Provision for doubtful debts at 5% of account receivable.
• Additional provision for doubtful debts at 2% at the end of the year based on account receivable balance

1. 4 Accruals and prepayments

• Interest payable at the end of the year RM 200.
• Utilities bill not paid for the month of December at RM 500.
• Insurance paid in advance for next 3 months.
• Advertisement service performed in December but bill yet to received RM 100.

1. Prepare the journal entries (10 marks)

Prepare journal entries for each transactions above.

2. Prepare the ledger (20 marks)

Using the information above and in (a). Balancing-off the account and get the balance of each accounts.