Eng Hardwares has the following balance as at 30 November 2020: Accounts RM'000 Wages(Debit) 110,000 Insurance(Debit) 2,000 Rental(Credit) 50,000 i. Eng Hardwares pays wages to its workers at the end of every month. However, some internal problems arise and it did not pay wages amounting to RM10,000 to its workers on time on the last day of December 2020. ii. It paid RM 10,000 for insurance covered from period December 2020 until March 2021 on 3rd December 2020. iii. It rents out part of its warehouse to another business for RM2,000 per month and receives the rent on the last day of each quarter on 31th June, 30th September, and 31st December. However, the tenant has some financial difficulties and failed to pay the three- month rent from October 2020 to December 2020 on 31 December 2020. iv. On 1 December 2020 it received RM21,600 for a one year rental from a new tenant. Prepare the journal entry for the reversal of the balance on the last day of adjustment and post it to the general ledger accounts from the information i to iv provided above.
Eng Hardwares has the following balance as at 30 November 2020:
| Accounts | RM'000 |
| Wages(Debit) | 110,000 |
| Insurance(Debit) | 2,000 |
| Rental(Credit) | 50,000 |
i. Eng Hardwares pays wages to its workers at the end of every month. However, some internal problems arise and it did not pay wages amounting to RM10,000 to its workers on time on the last day of December 2020.
ii. It paid RM 10,000 for insurance covered from period December 2020 until March 2021 on 3rd December 2020.
iii. It rents out part of its warehouse to another business for RM2,000 per month and receives the rent on the last day of each quarter on 31th June, 30th September, and 31st December. However, the tenant has some financial difficulties and failed to pay the three- month rent from October 2020 to December 2020 on 31 December 2020.
iv. On 1 December 2020 it received RM21,600 for a one year rental from a new tenant.
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