The following trial balance was extracted from the books of Lilylilac Enterprise as at 31 May 2020:   Trial balance as at 31 May 2020  Debit (RM)                             Credit (RM) Capital 344,250 Drawings                                                                                                   3, 100 Warehouse rent                                                                                                   6, 200 Heat and light                                                                                                   1, 800 Insurance                                                                                                   2, 400 Mortgage loan, secured on freehold land 100,000 Freehold land                                                                                                   370, 000 Utilities                                                                                                   6, 700 Postage 450 Stationery 680 Wages and salaries                                                                                                   14, 500 Purchases                                                                                                   132, 000 Purchase returns 5,300 Trade Payables 51,000 Sales 265,000 Sales returns                                                                                                   3, 600 Trade Receivables                                                                                                   87, 000 Inventories as at 1 June 2019                                                                                                   12, 600 Discounts received 2,400 Discounts allowed                                                                                                   3, 560 Bad debts                                                                                                   2, 700 Provision of doubtful debt at 1 June 2019 1,250 Motor expenses 710 Motor vehicles, at cost                                                                                                   85, 000 Accumulated depreciation - motor vehicle 17,000 Furniture, at cost                                                                                                   96, 000 Accumulated depreciation - furniture 9,600 Office equipment, at cost                                                                                                   62, 000 Accumulated depreciation - office equipment 15,200 Bank overdraft 106,000 Cash in hand                                                                                                   8, 000 Loan interest                                                                                                   18, 000 917, 000                 917,000       Additional information:   The inventories counted on 31 May 2020 were RM13,500.   Motor vehicles are depreciated on a straight-line basis, assuming a five-year life and zero residual   Office equipment is depreciated on a 25% per annum using reducing balance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following trial balance was extracted from the books of Lilylilac Enterprise as at 31 May 2020:

 

Trial balance as at 31 May 2020

 Debit (RM)                             Credit (RM)

Capital

344,250

Drawings                                                                                                   3,

100

Warehouse rent                                                                                                   6,

200

Heat and light                                                                                                   1,

800

Insurance                                                                                                   2,

400

Mortgage loan, secured on freehold land

100,000

Freehold land                                                                                                   370,

000

Utilities                                                                                                   6,

700

Postage

450

Stationery

680

Wages and salaries                                                                                                   14,

500

Purchases                                                                                                   132,

000

Purchase returns

5,300

Trade Payables

51,000

Sales

265,000

Sales returns                                                                                                   3,

600

Trade Receivables                                                                                                   87,

000

Inventories as at 1 June 2019                                                                                                   12,

600

Discounts received

2,400

Discounts allowed                                                                                                   3,

560

Bad debts                                                                                                   2,

700

Provision of doubtful debt at 1 June 2019

1,250

Motor expenses

710

Motor vehicles, at cost                                                                                                   85,

000

Accumulated depreciation - motor vehicle

17,000

Furniture, at cost                                                                                                   96,

000

Accumulated depreciation - furniture

9,600

Office equipment, at cost                                                                                                   62,

000

Accumulated depreciation - office equipment

15,200

Bank overdraft

106,000

Cash in hand                                                                                                   8,

000

Loan interest                                                                                                   18,

000

917,

000                 917,000

 

 

 

Additional information:

 

  • The inventories counted on 31 May 2020 were RM13,500.

 

  • Motor vehicles are depreciated on a straight-line basis, assuming a five-year life and zero residual

 

  • Office equipment is depreciated on a 25% per annum using reducing balance

 

  • Furniture is depreciated on a 10% per annum on cost.

 

  • The warehouse rent of RM3,000 per year is payable in advance on 1 December each

 

  • A staff bonus of RM2,700 relating to the financial year ended 31 May 2020 paid by cheque has not been included in the

 

  • Staff claims for motor expenses of RM250 in respect of 31 May 2020 paid by cash have not been included in the

 

  • Interest outstanding on the mortgage at 31 May 2020 was RM12,000.

 

  • Interest receivable on overdue Trade Receivables as 31 May 2020 was RM4,000.

 

  • Import duties related to purchases of RM3,000 was paid in cash but it was not recorded in the

 

  • The company disposed of a furniture that was purchases on 1 July 2015 at a cost of RM9,000 for RM2,000 cash on 31 May The policy of the company is to charge full year depreciation in the year of acquisition and no depreciation in the year of disposal.

 

  • ) Stella, a customer who owed RM5,200 has been declared The amount needs to be written off and the provision for doubtful debts needs to be adjusted to 5% of trade receivables as at year end.

 

Required:

 

  • Prepare the adjusting journal entries that must be made prior to the preparation of the financial statements for the financial year ended 31 May

(Note: Narratives are not required)                                                     (

 

  • The statement of profit or loss for Lilylilac Enterprise for the year ended 31 May 

 

  • The statement of financial position for Lilylilac Enterprise as at 31 May

 

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