Financial Accounting Question: The following trial balance was extracted from the books of Pemiagaan Manja Wholesaler at 30 April 2017:
|
|
Dr RM'000
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Cr RM'000
|
|
Sales revenue
|
|
1,800
|
|
Purchases
|
1,115
|
|
|
Buildings at cost
|
1,490
|
|
|
Warehouse fittings at cost
|
348
|
|
|
Inventory
|
132
|
|
|
Capital
|
|
1,400
|
|
12% Loan (repayable in 2020)
|
|
100
|
|
Wages
|
158
|
|
|
Accumulated Depreciation - Buildings
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|
320
|
|
Accumulated Depreciation - Warehouse fittings
|
|
197
|
|
Trade receivables
|
360
|
|
|
Trade payables
|
|
74
|
|
Bank
|
48
|
|
|
Distribution expenses
|
46
|
|
|
Rates expenses
|
52
|
|
|
Insurance expenses
|
33
|
|
|
Advertising expenses
|
85
|
|
|
Drawings
|
24
|
|
|
Loan interest
|
5
|
|
|
Discount allowed
|
1
|
|
|
Provision for doubtful debts
|
|
6
|
|
|
3,897
|
3,897
|
Additional information :
Inventory at 30 April 2017 costs RM230,000. This includes inventory costing RM20,000 which has a net realizable value of RM9,000.
Warehouse fittings were sold during the year. The proceeds of RM10,000 were debited to the bank account and credited to the buildings account. No other entry has been made regarding this transaction. The warehouse fittings had cost RM52,000 and the accumulated depreciation charged up to 1 May 2016 amounted to RM41,000. No depreciation is charged in the year of disposal.
Depreciation is to be provided for as follows:
- Buildings 2% on cost
- Warehouse fittings 25% on cost
Other payables as at 30 April 2017:
- Wages RM14,000
- Distribution expenses RM2,000
Other receivables (prepayments) at 30 April 2017: Insurance RM5,000
The provision for doubtful debts is to be adjusted to 2.5% of trade receivables figure at year end.
The owner, Puan Manja, put in additional RM20,000 into the business' bank account on 1 March 2017. This had not been reflected in the books.
Required:
Q1. Prepare the adjusting journal entries that must be made prior to the preparation of the financial statements for the financial year ended 30 April 2017.
Q2. Prepare the following financial statements for Perniagaan Manja Wholesaler:
(i) Statement of Profit or Loss for the year ended 30 April 2017.
(ii) Statement of Financial Position as at 30 April 2017.
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