Q1.
The following Trial balance was extracted from the Books of Mega Enterprise as
at 31 December
2017
$ $
Capital 200000
Duty on purchases 2300
Insurance 6000
7000
Inventory as at 1 January
0
Interest on loan 2500
2045
Account receivable and account payable
0 24500
2000
Purchase and sales
00 28000
2655
Land and building
50
Return inwards and return outwards 2300 1850
Accumulated depreciation – Office equipment 9850
Accumulated depreciation – Motor vehicles 50000
10% Loan from Hong Leong Bank 265000
Cash 7400
1000
10% Fixed deposit
0
Discount allowed and discount received 2500 5000
Carriage outwards 8200
Utilities 1500
4000
Bank
0
2800
Office equipment
0
2500
Salary and wages
0
1400
Motor vehicles
00
Drawings 3000
General expenses 3500
Commissions 2800 4800
Additional information:
1. Inventory as at 31 December 2017 was valued at $40,000
2. Included in the carriage outwards is carriage inwards amounting to $1,320.
3. Depreciation for the year are to be provided as follows:
Office equipment Straight line method, 10% per annum
Motor vehicles Reducing balance method, 15% per annum
4. Fixed deposit was invested on 1 July 2017. The half year interest was not yet
received
5. One of the employees was given an advance salary of $700.
6. The owner took goods worth $2,000 and cash $1,500 for personal use.
7. The following expenses are still outstanding as at 31 December 2017.
General expenses $600
Utilities $250
Required:
a) Prepare the Statement of profit or loss for the year ended 31 December 2017
Q2
Clearwater Sdn. Bhd. is a merchandising company which has business operations
in Putrajaya. The following balances have been extracted from the books as at 31
December 2015.
Debit Credit
$ $
Land 90000
Building 24000
Machinery 60000
Accumulated Depreciation
Building 72000
Machinery 11400
7.5% Loan from Maybank, 10 35000
Years 0
Bank overdraft 45000
Cash 36000
12280
Account receivable
0
11720
Inventories, 1 Jan
0
Account payable 65000
Dividend 60000
80000
Common stock/Share capital
0
11000
Supplies
0
Carriage outwards 40000
Carriage inwards 9600
Return inwards 2000
44000 98000
Purchases and sales
0 0
Discount allowed 45000
15000
Salaries expenses
0
Bad debts 10000
Prepaid insurance 36000
Interest expenses 13125
Telephone and internet
5000
charges
Rental and maintenance 36000
General expenses 55800
16512
Retained earnings, 1 Jan
5
24485
24885
25
25
Additional Information
1. Closing inventories as at 31 December 2015 was valued at $50,000.
2. A count on supplies on 31 December 2015 revealed $60,000 worth still on
hand.
3. Half of the interest on loan has not been paid for the year.
4. Commission received $15,000 has not been included and no entries had been
recorded in
the books.
5. Depreciation was to be provided:
Building 2% on cost
Machinery 10% on reducing balance
6. Telephone and internet charges outstanding amounted to $1,300.
7. The prepaid insurance is for a 12-month policy purchased by cash on 1 March
2015. The
policy is effective from 1 March 2015.
Required:
a) Prepare the statement of profit or loss for the year ended 31 December 2015
