it\'s all one questions Clearwater En erak, the olowing balances have been extra
ID: 2409758 • Letter: I
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it's all one questions
Clearwater En erak, the olowing balances have been extracted from the books as at 31 December 2016 terprise is a merchandising company which has business operations in Ipoh. Debir (RM) 30,000 Credit (RM) Machinery Accumulated depreciation- machinery Land Building 10,000 250,000 120,000 Accumulated depreciation building 24.000 40,000 22,500 Loan from Ah Ling (10 years) Bank overdraft Accounts receivable Inventories Accounts payable Drawings 61,400 58,600 12,400 40,000 200,000 Capital Carriage outwards 20,000 1,921,000 22,500 Discount allowedExplanation / Answer
Trial Balance Adjustment Adjusted Trial Balance DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Machinery 30,000 Machinery 30,000 Accumulated depreciation 10,000 v (0.1*(30000-10000) 2,000 Accumulated depreciation 12,000 Land 250,000 Land 250,000 - Building 120,000 Building 120,000 - Accumulated depreciation-Building 24,000 v (0.2*120000) 24,000 Accumulated depreciation-Building 48,000 Loan from Ah Ling (10 years) 40,000 Loan from Ah Ling (10 years) 40,000 Bank overdraft 22,500 Bank overdraft 22,500 Account receivable 61,400 vii 1,500 Account receivable 59,900 Inventories 58,600 i 58,600 Inventories - Accounts payable 12,400 Accounts payable 12,400 Drawings 40,000 vi (3000+1000) 4000 Drawings 44,000 Capital 200,000 Capital 200,000 Carriage outwards 20,000 Carriage outwards 20,000 Sales 1,921,000 Sales 1,921,000 Discount allowed 22,500 Discount allowed 22,500 Purchases 1,100,000 i 1,100,000 Purchases - Carriage inwards 5,800 i 5,800 Carriage inwards - Salaries expenses 280,000 Salaries expenses 280,000 Supplies 80,000 ii (80000-30000) 50,000 Supplies 30,000 Bad debts 8,400 vii 1,500 Bad debts 12,895 Bad debts vii (0.05*(61400-1500) 2,995 a Cash 3,000 vi 1,000 Cash 2,000 Prepaid insurance 96,000 iii (96000*(10/12) 80,000 Prepaid insurance 16,000 Interest expenses 17,200 iv 4,000 Interest expenses 13,200 General expenses 37,000 General expenses 37,000 i Closing Inventories 25,000 Closing Inventories 25,000 (58600+1100000+5800-25000) i Cost of goods sold 1,139,400 3,000 Cost of goods sold 1,136,400 (80000-30000) ii Supplies expenses 50,000 Supplies expenses 50,000 (96000*(10/12) iii Insurance expenses 80,000 Insurance expenses 80,000 iv Prepaid interest 4,000 Prepaid interest 4,000 (0.2*120000) v Depreciation-Building 24,000 Depreciation-Building 24,000 (0.1*(30000-10000) v Depreciation-Machinery 2,000 Depreciation-Machinery 2,000 (0.05*(61400-1500) vii Provision for doubtful debts 2,995 Provision for doubtful debts 2,995 TOTAL 2,258,895 2,258,895 STATEMENT OF COMPREHENSIVE INCOME For the year ended 31st December,2016 Net Sales 1,898,500 (1921000-22500) Cost of goods sold 1,136,400 Gross Profit 762,100 Operating Expenses: Carriage outwards 20,000 Salaries expenses 280,000 Bad debts 12,895 Interest expenses 13,200 General expenses 37,000 Supplies expenses 50,000 Insurance expenses 80,000 Depreciation-Building 24,000 Depreciation-Machinery 2,000 Total Operating expenses 519,095 Operating Income 243,005 STATEMENT OF FINANCIAL POSITION ASSETS: Cash 2,000 Accounts Receivable 59,900 Inventory 25,000 Supplies 30,000 Prepaid insurance 16,000 Prepaid interest 4,000 Total Current Assets 136,900 Land 250,000 Building 120,000 Accumulated depreciation -Building (48,000) Machinery 30,000 Accumulated depreciation -Machinery (12,000) Total Fixed assets 340,000 Total Assets 476,900 LIABILITIES & OWNERS EQUITY: LIABILITIES: Bank overdraft 22,500 Accounts Payable 12,400 Provision for doubtful debts 2,995 Loan from Ah Ling (10 years) 40,000 Total Liabilities 77,895 Owners Equity: Capital 200,000 Drawings (44,000) Retained Earnings 243,005 Total Owners Equity 399,005 Total Liabilities and owners equity 476,900
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