3. The following is the trial balance of Aroro Enterprise as at 31 August 2019 Particulars Debit (RM) Credit (RM) Capital 48,400 Drawings 3,500 Trade receivables 9,000 Trade payables 12,500 Sales 40,400 Purchases 31,000 Sales returns 300 Purchases returns 250 Wages and salaries 5,600 Discounts allowed 120 Discounts received 200 Provision for doubtful debts 300 Insurance 700 Inventory as at 1 September 2018 2,400 Utilities 950 Rates 350 Premises 10,000 Fixtures and fittings 3,000 Motor van 20,000 Cash in hand 330 Cash at bank 14,800 TOTAL 102,050 102,050 Additional information as at 31 August 2019: i. Inventory as at 31 August 2019 amounted RM3,300 ii. An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. iii. The provision for doubtful debts is 1% of the outstanding trade receivables. iv. The owner took RM100 worth of goods from the business for his own use Required: a) Statement of Profit or Loss and Others Comprehensive Income for the year Ended 31 August 2019. b) Statement of Financial Position as at 31 August 2019.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
3. The following is the
Particulars Debit (RM) Credit (RM)
Capital 48,400
Drawings 3,500
Trade receivables 9,000
Trade payables 12,500
Sales 40,400
Purchases 31,000
Sales returns 300
Purchases returns 250
Wages and salaries 5,600
Discounts allowed 120
Discounts received 200
Provision for doubtful debts 300
Insurance 700
Inventory as at 1 September 2018 2,400
Utilities 950
Rates 350
Premises 10,000
Fixtures and fittings 3,000
Motor van 20,000
Cash in hand 330
Cash at bank 14,800
TOTAL 102,050 102,050
Additional information as at 31 August 2019:
i. Inventory as at 31 August 2019 amounted RM3,300
ii. An entity from whom there is
settle his debt and this amount is to be written off as
iii. The provision for doubtful debts is 1% of the outstanding trade receivables.
iv. The owner took RM100 worth of goods from the business for his own use
Required:
a) Statement of Profit or Loss and Others Comprehensive Income for the year
Ended 31 August 2019.
b)
Step by step
Solved in 2 steps
