Adjusted Trial Statement of Profit or Statement of Financial

Account Titles Trial Balance Adjustment

Balance Loss Position
Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
Inventory at 1 January 2016 8,000 8,000 8,000
Purchases 76,000 76,000 76,000
Sales 157,100 157,100 157,100
Rent 14,400 ii) 400 14,800 14,800
Insurance and expenses 2,000 iii) 300 1,700 1,700
Sundry expenses 360 360 360
Motor vehicles at cost 90,000 90,000 90,000
Accounts receivable 11,160 11,160 11,160
Accounts payable 18,100 18,100 18,100
Bank 3,500 3,500 3,500
Cash 780 780 780
Provision for depreciation- MV 25,000 iv) 13,500 38,500 38,500
Capital on 1 January 2016 30,000 30,000 30,000
Drawings 24,000 24,000 24,000
Total: 230,200 230,200
Inventory on 31 Dec 2016 i) 9,600 9,600 9,600
SOPL i) 9,600 9,600 9,600
Accrued rent ii) 400 400 400
Prepaid insurance iii) 300 300 300
Depreciation: Motor Vehicle iv) 13,500 13,500 13,500
Total 23,800 23,800 253,700 253,700 114,360 166,700 139,340 87,000
Net profit 52,340 52,340
Total 166,700 166,700 139,340 139,340
 Tutorial Worksheet Question 1:

a) Adjusting journal entries

i)

Items Debit (RM) Credit (RM)

Inventory 9,600
SOPL 9,600

ii)

Items Debit (RM) Credit (RM)

Rent 400
Accrued rent 400

Items Debit (RM) Credit (RM)

SOPL 14,800
Rent 14,800

iii)

Items Debit (RM) Credit (RM)

Prepaid insurance 300
Insurance expenses 300

Items Debit (RM) Credit (RM)

SOPL 1700
Insurance expenses 1700
iv)

Items Debit (RM) Credit (RM)

Depreciation 13,500
Provision for depreciation 13,500

Items Debit (RM) Credit (RM)

SOPL 38,500
Depreciation expenses 38,500

c)Closing entries

1.Close credit balances in revenues accounts to income summary:

Debit (RM) Credit (RM)

31 December 2016:
Sales 157,100
Income summary 157,100

2. Close debit balances in expense accounts to income summary:

Debit (RM) Credit (RM)

31 December 2016:
Income summary 114,360
Inventory 8,000
Purchases 76,000
Rent 14,800
Insurance and expenses 1,700
Sundry expenses 360
Depreciation: Motor Vehicle 13,500
 Income Summary:

Expenses 114,360 Revenues 157,100

c/d 42,740
Net profit 42,740

3. Close income summary to owner’s capital:

Income summary 42,740

Owner’s capital 42,740

4. Close withdrawing accounts to owner’s capital:

Capital 24,000
Drawings 24,000
Post-closing trial balances:

Debit (RM) Credit (RM)

Inventory - -
Purchases - -
Sales - -
Rent - -
Insurance and expenses - -
Sundry expenses - -
Motor vehicles at cost 90,000
Accounts receivable 11,160
Accounts payable 18,100
Bank 3,500
Cash 780
Provision for depreciation 38,500
Capital 48,740
Drawings -
Inventory -
SOPL -
Accrued rent 400
Prepaid insurance 300
Depreciation: motor vehicle -
Totals 105,740 105,740