Revision Q&A
Question 1
The following shows the unadjusted Trial Balance of Shahanom Logistics Sdn Bhd during May
2018:
Shahanom Logistics Sdn Bhd
Unadjusted Trial Balance for the month ended May 31, 2018
Account Title
Balance
Debit (RM)
Credit (RM)
Service Revenue
69,000
Salaries Expenses
30,000
Petrol Expenses
5,000
Rent Expenses
32,000
Cash in bank
451,000
Accounts Receivable
26,000
Office Supplies
14,000
Prepaid Electricity
15,000
Motor van
400,000
Accumulated Depreciation—Motor van
5,000
Accounts Payable
8,000
Unearned Revenue
64,000
Shahanom, Capital
867,000
Shahanom, Withdrawals
40,000
Total
1,013,000
1,013,000
Additional information:
1. Depreciation was recorded on the motor van using the straight-line method.
Assume a useful life of five years and a salvage value of RM100,000.
2. Prepaid Electricity for the month has expired. Electricity was prepaid at RM20,000
cash for four months period starting April 1.
3. Accrued Salaries Expenses, RM20,000.
4. Accrued Service Revenue, RM24,000.
5. Office Supplies on hand, RM2,400.
Required:
(a) Prepare an Adjusted Trial Balance as of May 31, 2018
(b) Prepare Shahanom Logistics Sdn Bhd’s Statement of Comprehensive Income
(Income Statement) and Statement of Owner’s Equity for the month ended May 31,
2018.
(c) Prepare Shahanom Logistics Sdn Bhd’s Statement of Financial Position (Balance
Sheet) on May 31, 2018.
(a)
Shahanom Logistics Sdn Bhd
Adjusted Trial Balance for month ended May 31, 2018 ^
Account Title
Balance
Debit (RM)
Credit(RM)
93,000^
Service Revenue (69k + 24k)
50,000^
Salaries Expenses (30k + 20k)
5,000^
Depreciation Expenses—Motor van(400k-100k/5*1/12)
5,000^
Electricity Expenses
Petrol Expenses
5,000
Rent Expenses
32,000
11,600^
Supplies Expenses
Cash in bank
451,000
50,000^
Accounts Receivable (26k + 24k)
2,400^
Office Supplies (14,000 – 11,600)
10,000^
Prepaid Electricity (15k – 5k)
Motor van
400,000
10,000^
Accumulated Depreciation—Motor van (5k + 5k)
Accounts Payable
8,000
20,000^
Salaries Payable
Unearned Revenue
64,000
Shahanom, Capital
867,000
Shahanom, Withdrawals
40,000
Total
1,062,000
1,062,000
(b)
Shahanom Logistics Sdn Bhd
Income Statement for Month Ended May 31, 2018 ^
(RM)
Revenues:
Service Revenue
Expenses:
Salaries Expenses
Rent Expenses
Supplies Expenses
Depreciation Expenses—Motor van
Petrol Expenses
Electricity Expenses
Total Expenses
Net Loss
(RM)
93,000 ^^
50,000 ^^
32,000 ^
11,600 ^^
5,000 ^^
5,000 ^
5,000 ^^
Shahanom Logistics Sdn Bhd
(108,600)
^(15,600) ^
Statement of Owner’s Equity for Month Ended May 31, 2018^
867,000 ^
Shahanom, Capital, May 1, 2018
(15,600) ^
Net loss for the month
851,400
(40,000) ^
Owner withdrawal
811,400 ^
Shahanom, Capital, May 31, 2018
(c)
Shahanom Logistics Sdn Bhd
SOFP as at May 31, 2018 ^
(RM)
Assets
Current Assets:
Cash in bank
Accounts Receivable
Office Supplies
Prepaid Electricity
Total Current Assets
Non-Current Assets:
Motor van
Less: Accumulated Depreciation—Motor van
Total Plant Assets
Total Assets
Liabilities
Current Liabilities:
Accounts Payable
Salaries Payable
Unearned Revenue
Total Current Liabilities
Total Liabilities
Owner’s Equity
Shahanom, Capital
Total Liabilities and Owner’s Equity
(RM)
451,000^
50,000^^
2,400^^
10,000^^
513,400
400,000 ^
(10,000)
^^
390,000
903,400
8,000^
20,000^^
64,000^^
92,000
92,000
811,400^
903,400
Additional Question 1
Fresh Flowers is a florist that buys and sells flowers and bouquets for special occasions. The unadjusted
trial balance as at 31 December 2014 is as follows:
Fresh Flowers
Unadjusted Trial Balance
as at 31 December 2014
Debit
Credit
RM
RM
Cash
123,400
Accounts Receivable
54,000
Provision for Doubtful Debts
3,800
Inventory (Opening)
39,260
Furniture
25,000
Provision for Depreciation
2,500
Accounts Payable
49,700
Insurance Expense
8,000
Capital
128,100
Drawings
2,180
Sales
151,340
Purchases
60,400
Sales Return
6,200
Utilities Expense
14,300
Fuel Expense
2,700
335,440
335,440
The following balance day adjustments have not been taken into account for year ended 31 December
2014:
 Insurance paid in advance was RM3,200.
 Utilities owing at the end of the period amounts to RM800.
 Furniture was purchased on 1 January 2013. The business decides to provide depreciation at 10%
per annum using the reducing-balance method.
 Fuel expense accrued, RM1,100.
 Inventory on hand as at 31 December 2014 is RM30,000.
 Provision for doubtful debts is to be estimated at 8% of total accounts receivable.
Required:
(a) Prepare Adjusted Trial Balance
(b) Prepare Fresh Flowers’ Statement of Comprehensive Income (Income Statement) for the year ended
31 December 2014.
(c) Prepare Fresh Flowers’ Statement of Financial Position as at 31 December 2014.
Fresh Flowers
Adjusted Trial Balance
as at 31 December 2014
Cash
Accounts Receivable
Provision for Doubtful Debts (54000 * 8%)
Inventory (Opening)
Furniture
Provision for Depreciation (2500 + 2,250)
Accounts Payable
Insurance Expense (8000 – 3200)
Capital
Drawings
Sales
Purchases
Sales Return
Utilities Expense (14,300 + 800)
Fuel Expense (2,700 + 1100)
Prepaid insurance
Utilities payable
Depreciation expense (25000-2500 * 10%)
Fuel payable
Increase in doubtful debts expense
Debit
RM
123,400
54,000
Credit
RM
4,320
39,260
25,000
4,750
49,700
4,800
128,100
2,180
151,340
60,400
6,200
15,100
3,800
3,200
800
2,250
1,100
520
340,110
340,110
Additional Question 2
Strong Wood sells wooden furniture made from oak and mahogany. The business’ unadjusted trial balance
as at 30 June 2015 is as follows:
Strong Wood
Unadjusted Trial Balance
as at 30 June 2015
Debit
Credit
RM
RM
Cash
360,800
Accounts Receivable
120,000
Provision for Doubtful Debts
4,000
Inventory (Opening)
458,700
Delivery Van
125,000
Accounts Payable
249,500
Maintenance Expense
15,400
Capital
318,700
Drawings
35,800
Sales
880,000
Purchases
330,900
Purchases Return
30,200
Fuel Expense
12,800
Salary Expense
23,000
1,482,400 1,482,400
The following balance day adjustments have not been taken into account for year ended 30 June 2015:
 Provision for doubtful debts is to be estimated at 5% of total accounts receivable.
 Fuel expense paid in advance was RM2,600.
 Salary owing at the end of the period amounts to RM2,800.
 Delivery van was purchased on 1 January 2015. The business decides to provide depreciation at
8% per annum using the straight-line method. Full depreciation is charged on the year of purchase
regardless of the date of purchase.
 Maintenance expense accrued, RM1,500.
 Inventory on hand as at 30 June 2015 is RM210,000.
Required:
(a) Prepare adjusted trial balance
(b) Prepare Strong Wood’s Statement of Comprehensive Income (Income Statement) for the year ended
30 June 2015.
(c) Prepare Strong Wood’s Statement of Financial Position as at 30 June 2015.
Strong Wood
Adjusted Trial Balance
as at 30 June 2015
Cash
Accounts Receivable
Provision for Doubtful Debts (4000 + 2000)
Inventory (Opening)
Delivery Van
Accounts Payable
Maintenance Expense (15,400 + 1500)
Capital
Drawings
Sales
Purchases
Purchases Return
Fuel Expense (12,800 – 2,600)
Salary Expense (23,000 + 2800)
Increase in Doubtful debt expense
Prepaid Fuel expense
Salaries Payable
Depreciation expense 125,000 * 8%
Accumulated Depreciation
Maintenance expense payable
Debit
RM
360,800
120,000
Credit
RM
6000
458,700
125,000
249,500
16,900
318,700
35,800
880,000
330,900
30,200
10,200
25,800
2,000
2,600
2,800
10,000
1,498,700
10,000
1,500
1,498,700