Question 2: Tarcy Enterprise is operated by Priscilla Tam. She provided the following Trial Balance for the year ended 30 June 20X1: Dr Cr RM RM Inventory, 1 July 20X0 160,000 6% Long term loan 200,000 Water and electricity 4,300 Bank 6,000 Capital 1,000,000 Carriage inwards 1,800 Purchases and Sales 956,000 1,254,600 Cash 8,800 Allowance for doubtful debts, 1 July 20X0 1,000 Custom duty 3,000 Trade receivables and payables 136,000 68,000 Bad debts 3,700 Carriage outwards 3,000 Drawings 12,000 Freehold premises 800,000 Motor vehicles 100,000 Plant and machinery 300,000 Accumulated depreciation: motor vehicles 12,000 Accumulated depreciation: plant & machinery 24,000 General expenses 2,200 Interest on loan 3,500 Discounts 600 800 Advertisement 16,000 Returns 4,500 3,000 Salaries 60,000 Commission received 6,000 2,575,400 2,575,400 Additional information: 1. Closing inventory was valued at RM175,000. 2. Included in the purchases were goods worth RM6,000 which had been taken by Priscilla for family use. No recording had yet been done. 3. General expenses accrued was RM500 as at year end. 4. Commission received outstanding was RM1,000 as at year end. 5. Interest on loan has been overlooked by the book-keeper, only partly settled. 6. Allowance for doubtful debts is to be reduced to RM800 as at year end. 7. Depreciation charges – Plant and machinery (15% on cost) Motor vehicles (20% on reducing balance) Required: Prepare the following for Tarcy Enterprise: a) Statement of Profit or Loss for the year ended 30 June 20X1; b) Statement of Financial Position as at 30 June 20X1.
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.
Question 2:
Tarcy Enterprise is operated by Priscilla Tam. She provided the following
Dr Cr
RM RM
Inventory, 1 July 20X0 160,000
6% Long term loan 200,000
Water and electricity 4,300
Bank 6,000
Capital 1,000,000
Carriage inwards 1,800
Purchases and Sales 956,000 1,254,600
Cash 8,800
Allowance for doubtful debts, 1 July 20X0 1,000
Custom duty 3,000
Trade receivables and payables 136,000 68,000
Carriage outwards 3,000
Drawings 12,000
Freehold premises 800,000
Motor vehicles 100,000
Plant and machinery 300,000
Accumulated depreciation: plant & machinery 24,000
General expenses 2,200
Interest on loan 3,500
Discounts 600 800
Advertisement 16,000
Returns 4,500 3,000
Salaries 60,000
Commission received 6,000
2,575,400 2,575,400
Additional information:
1. Closing inventory was valued at RM175,000.
2. Included in the purchases were goods worth RM6,000 which had been
taken by Priscilla for family use. No recording had yet been done.
3. General expenses accrued was RM500 as at year end.
4. Commission received outstanding was RM1,000 as at year end.
5. Interest on loan has been overlooked by the book-keeper, only partly
settled.
6. Allowance for doubtful debts is to be reduced to RM800 as at year end.
7. Depreciation charges – Plant and machinery (15% on cost)
Motor vehicles (20% on reducing balance)
Required:
Prepare the following for Tarcy Enterprise:
a) Statement of Profit or Loss for the year ended 30 June 20X1;
b)
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