Preparation of Financial Statement with adjustments

The following is the trial balance of Johnathan Sdn Bhd as at 31^st December 2020

	Dr	Cr
	RM	RM
Account Receivables	60,000
Accounts Payables		40,000
Accumulated depreciation – office fixtures		20,000
Accumulated depreciation – motor vehicle		10,000
Capital		100,000
Carriage Inwards	1,000
Carriage Outwards	4,000
Cash at bank and cash in hand	56,000
Commissions paid	5,000
Communication expenses	8,000
Drawings	10,000
Insurance	9,000
Inventories 1 January 2020	12,000
Motor vehicles	80,000
Provision for doubtful debts		1,000
Purchases	70,000
Rental	4,000
Returns Outwards		9,000
Sales		227,000
Sundry Expenses	2,000
Vehicle Expenses	11,000
Wages and Salary	15,000
Fixtures	60,000
	407,000	407,000

Notes to the accounts

1. Inventory at year end was RM 40,000

2. The provision for bad debts as of 31^st December 2020 was RM1,200

3. A 5% discount is to be given for credit sale RM8,000

4. A cash sales transaction amounting to RM6,000 was omitted from the books

5. Drawing during the year by cash amounted to RM5,000

6. In the sundry expense account, payment for personal matters amounted to RM400

7. Depreciation on Motor Vehicles was 10% per annum on the straight-line method.

8. Depreciation on Fixtures was 5% per annum on the reducing balance method.
9. Loan from Bank RM 40,000 on 1^st July 2020 at an interest of 3% interest. Interest payment has been made.

10. A posting error on communication expenses was wrongly recorded as follows:

Dr Bank 9,000 Cr Communication expenses RM 9,000