Question 4

The following are the balances extracted from the accounting records of ABU, a sole trader, for
the year ended 31 December 2001:

RM
Cr Trade payables 35,500
Dr Trade receivables 15,800
Dr Wages and salaries 38,400
Cr Bank overdraft 2,500
Dr Cash in hand 520
Dr Drawings 18,500
Dr Irrecoverable debt expenses 500
Dr Depreciation 11,400
Cr Long term loan 20,000
Cr Capital at 1 January 2001 150,000
Dr Business premises at cost 264,330
Dr Equipment at cost 66,650
Dr Purchases 380,800
Cr Sales 592,400
Dr Inventory at 1 January 2001 15,000
Dr Prepaid rental 5,600
Cr Discounts received 1,900
Cr Returns outwards 15,200

Required:

(a) Prepare a Trial Balance for the business as at 31 December 2001.

Trial Balance as 30 December 2001

Details Debit (RM) Credit (RM)

Trade payables 35,500

Trade receivables 15,800

Wages and salaries 38,400

Bank overdraft 2,500

Cash in hand 520

Drawings 18,500

Irrecoverable debt expenses 500

Depreciation 11,400
Long term loan 20,000

Capital at 1 January 2013 150,000

Business premises at cost 264,330

Equipment at cost 66,650

Purchases 380,800

Sales 592400

Inventory at 1 January 2013 15,000

Prepaid rental 5,600

Discounts received 1,900

Returns outwards 15,200

Total 817500 817500