Question 1

The following information is extracted from the book of Tropicana Marketing on 30

June 2010.
RM
Credit balances in purchases ledger
Debit balances in purchases ledger
Credit balances in sales ledger
Debit balances in sales ledger

24,448
450
760
44,000

The following information relates to the year ended 30 June 2011:

Purchases invoices received
Purchases for cash
Discounts received
Sales invoices issued
Receipts from cash sales
Bad debts written of
Bad debts prior to 1 July 2010 now received
Cash paid to creditors
Purchases returns and allowances
Discount allowed
Sales returns
Cash received from debtors
Legal expenses charged to debtors
Credit in purchases ledger transferred to sales ledger
Increase in allowance for bad and doubtful debts
Credit balances in sales ledger 30 June 2011
Debit balances in purchases ledger 30 June 2011

248,800
4,800
3,600
329,600
36,000
4,400
120
246,400
3,200
5,600
2,800
324,600
468
448
900
2,440
420

Required:
From the information given, prepare Sales and Purchases Ledger Control Account
using the appropriate balances for the year ended 30 June 2011.

Question 2
Upon completion of Trial Balance for Crystal Clear Ent., it was noted there was
diference and suspense account was created to achieve the balance.
Examination of the books then revealed that:
1. Discount allowed of RM76 had been credited to the discount received account
2. Sale of RM 151 to Antara Trading had been posted correctly to debtor but
entered in sales day book as RM115
3. A cheque received from ABCO Ltd been entered correctly in the cash book of
RM766, however, it had been posted to ABCO Ltd ledger as RM760
4. The purchase of new machinery for RM1,200 had been posted to the stock
account. Depreciation is ignored for the year in which machinery is purchase
5. A sale of RM265 to Sunflower Trading had not been posted to his account
6. A petty cash balance of RM100 was omitted from the Trial Balance
7. Bank interest charges of RM720 were correctly entered in the cash book.
However, the other side of the entry had been omitted

Required:
i)
ii)
iii)

Prepare journal entries to correct the above errors (narrations are not
required)
Prepare Suspense Account
Show efect of the above corrections on profit. Current profit from the
unadjusted trial balance is RM16,217

Question 3
Carven Tiles & Ceramics extracted the following balances from their accounting
records as at 31 December 2009:
Inventory as at 1 January 2009
Raw materials
Work-in-progress
Finished goods
Indirect factory expenses
Salaries and wages
Purchases of raw materials
Provision of depreciation plant and machinery at 31 December 2008
Returns inwards
Purchases of finished goods
Allowance for doubtful debts at 31 December 2008
Carriage inward for raw materials
Manufacturing wages
Light and heat
Direct factory expenses
Insurance
Carriage outwards
Factory power
Rent and rates
Bad debts
Plant and machinery at cost
Sales

RM
75,000
21,000
28,600
4,800
60,000
520,000
60,000
1,200
18,800
9,600
4,200
360,000
16,000
3,900
6,800
3,000
18,600
52,000
2,400
200,000
1,318,300

Additional information available at 31 December 2009 was as follows:

1. Rent and rates, light and heat, and insurance are to be apportioned between
factory and office as and respectively
2. Salaries and wages are to be split factory 1/3 and office 2/3
3. Wages accrued due for manufacturing RM8,000
4. Rates prepaid of RM2,000
5. Depreciate plant and machinery at rate of 20% p.a. on cost
6. Value of inventory at 31 December 2009:
Raw materials
RM68,000
Work-in-progress RM25,000
Finished goods
RM30,800
Required:

Prepare manufacturing and income statements for the year ended 31 December
2009
Question 4
Jenny, Thien and Kok Nam are in partnership, sharing profits and losses in the ratio
2:1:1 respectively. The statement of financial position of the firm as at 31 March
2012 was as follows:
Jenny, Thien and Kok Nam
Statement of Financial Position as at 31 March 2012
Non-Current Assets
Freehold premises
Plant and equipment
Depreciation
Motor Vehicles
Depreciation
Fixtures and fittings
Depreciation

RM
100,000
20,000
(8,000)
10,000
(4,000)
5,000
(1,000)

12,000
6,000
4,000
122,000

Current Assets
Inventory
Trade Receivables
Cash at Bank

12,000
6,500
4,100

2,600
144,600

Current Liabilities
Trade Payables

(4,600)
140,000

Long-Term Liabilities
Loan from Jenny

(20,000)
120,000

Financed by:
Capital
Jenny
Thien
Kok Nam

60,000
35,000
25,000
120,000

On 1 April 2012, it was agreed to dissolve the partnership. As Jenny agreed to take
over the following assets at book value:
Freehold premises
RM40, 000
Motor vehicle
RM3, 500
Fixtures and Fittings
RM3, 500

The partners paid RM4, 500 in full settlement of the amount owed to the trade
payables. The trade receivables realized RM6, 000 and realization expenses of RM1,
200 were paid. The remaining assets not taken over by Jenny were sold for the
following amounts:
Freehold premises
Plant and equipment
Motor vehicles
Inventory

RM70, 000
RM10, 000
RM2, 000
RM9, 000

Required:
You are required to show the relevant accounts and final distribution between
partners.