ACT 2112

SOLUTION FOR TUTORIAL 9

ANSWER FOR QUESTION 1

No.

Transactions

RM

RM

i) Record closing stock at RM18,000

ii) Carriage inwards
Accrued carriage inwards

600

iii) Drawings
Purchases

550

iv) Depreciation expense- OE

Accumulated depreciation OE

600

550
6,000
6,000

v) Allowance for doubtful debts

Bad debt over provision

75

vi) Commissions revenue

Prepaid commissions revenue

400

vii) Prepaid rental

Rental expense

350

75

400

350

Sinar Enterprise
Income Statement
For The Year Ended 30th June 2008
RM
Sales
Less: Sales Return
Net Sales
Opening stock
Purchases (21,600-550)
Less: Purchases returns
Discount received
Add: Duty on purchases
Carriage inwards (1,150+600)
Cost of goods available for sale
Less: Closing stock
Cost of Goods Sold (COGS)
Gross Profit
Add: Other revenues
Commission revenue (1,800-400)
Bad debt over provision
Less: Expenses
Repair and maintenance
Carriage outwards
Rent (4,550-350)
Bad debts
Depreciation of vehicles
Net Profit

RM
45,300
(300)

RM
45,000

16,750
21,050
(1,050)
(280)
19,720
2,160
1,750

23,630
40,380
(18,000)
(22,380)
22,620
1,400
75

680
540
4200
300
6,000

1,475
24,095

11,720
12,375

Sinar Enterprise
Balance Sheet
As at 30th June 2008
RM
Fixed assets
Motor vehicles
Less: Accumulated depreciation (9,000+6,000)
Office equipment
Current assets
Stock
Debtors
Less: Allowance for doubtful debts
Prepaid rent
Bank
Total assets
Current liabilities
Creditors
Accrued carriage inwards
Prepaid commissions revenue
Owners equity
Capital
Add: Net profit
Less: Drawings (1,000+550)
Total liabilities and owners equity

30,000
15,000

RM

RM

15,000
7,500

22,500

18,000
4,500
(225)

4,275
350
6,750

5,050
600
400
35,000
12,375
(1,550)

29,375
51,875

6,050

45,825
51,875

ANSWER FOR QUESTION 2

No.

Transactions

RM

RM

i) Record closing stock at RM35,600

ii) Insurance expense

Prepaid Insurance

2,000

iii) Supplies expense (1950-450)

Supplies

1,500

iv) Depreciation expense- building

Accumulated depreciation building

1,620

Depreciation expense equipment

Accumulated depreciation equipment

2,000

1,500

1,620
3,160
3,160

v) Salaries and wages expense

Accrued salaries and wages expense

2,000

vi) Accrued rental revenue/Unearned rent

Rental revenue (1500-500)

1,000

vii) Interest expense

Accrued interest expense

1,251

2,000

1,000

1,251

RM100,000 x 5% x 3/12 = RM1,251

viii) Provision for Doubtful debt
Bad debt over provision

160
160

Sejahtera Co.
Income Statement
For The Year Ended 31st October 2008
RM

RM

Sales
Opening stock
Purchases (21,600-550)
Cost of goods available for sale
Less: Closing stock
Cost of Goods Sold (COGS)
Gross Profit

26,800
98,700
125,500
(35,600)
(89,900)
106,800

Add: Other revenues

Rental revenue
Bad debt over provision

1,000
160

Less: Expenses
Insurance expense
Supplies expense
Interest expense
Salaries and wages expense
Advertising expense
Utilities expense
Repair expense
Miscellaneous expense
Depreciation building
- Equipment

2,000
1,500
1,251
62,200
18,500
15,100
9,300
3,050
1,620
3,160

Net Loss

RM
196,700

1,160
107,960

117,681
9,721

Sejahtera Co.
Balance Sheet
As at 31st October 2008
RM
Fixed assets
Land
Building
Less: Accumulated depreciation (81700+1620)
Office equipment
Less: Accumulated depreciation
Current assets
Cash
Debtors
Less: Allowance for doubtful debts
Prepaid insurance
Supplies
Stock
Total assets

RM

70,000
100,500
83,320
72,400
66,960

Owners equity
Capital
Less: Net loss
Less: Drawings
Total liabilities and owners equity

17,180
5,440
92,620

5,500
17,000
340

16,660
1,000
450
35,600

Long-Term Liability
Loan
Current liabilities
Creditors
Accrued salaries and wages
Accrued interest
Prepaid rent revenue

RM

59,210
151,830

100,000
4,100
2,000
1,251
500
57,700
(9,721)
(4,000)

7,851

43,979
151,830