BHT1333 HOSPITALITY ACCOUNTING 1 DEGREE (HOSPITALITY)

Tutorial 13: Finalised Financial Statements and Closing Entries Additional information:
1. Closing inventory was valued at cost RM26,300 but the market value
Question 1: (Prior year question September 2007 Question 2) was RM29,900
2. A quarter of the wages and salaries was paid to warehouse employees
Maju Jaya Trading extracted the following balances from the business One third of the carriage expenses was to deliver goods to warehouse
ledgers as at 31 August 2010: 3. Received utilities bill RM450 for August 2010, but no payment has
Dr Cr been made
RM RM 4. Insurance premium was paid for the year ended 31 December 2010
Furniture & Fittings 50,000 5. Received rent for the six months ended 30 September 2010
Office Equipment 40,000 6. An additional amount due from Encik Nagendran RM1,600 is to be
Accumulated depreciation: office equipment 8,000 written off as bad debts. Allowance for doubtful debts is to be adjusted
Motor Vehicles 70,000 at 5% of the remaining receivables
Accumulated depreciation: motor vehicles 25,200 7. Depreciation is to be provided as follows:
Drawings 19,100 Furniture & fittings : 20% per annum at cost
Capital 140,000 (Acquired on 1 March 2010)
Loan 25,000 Office equipment : 20% per annum using
Inventory as at 1 September 2009 29,300 straight-line method
Purchases and Sales 89,100 177,300 Motor vehicles : 20% per annum using
Returns 3,800 2,600 reducing-balance method
Carriage 4,500
Wages and salaries 36,000
Discounts 2,300 1,300 Required:
Rent 4,800 (a) Prepare the Statement of Comprehensive Income for Maju Jaya
Interest 1,800 Trading for the year ended 31 August 2010
Insurance 3,600
Utilities 5,000 (b) Prepare the Statement of Financial Position as at that date.
Bad debts 1,900
Trade receivables and payables 46,600 31,300
Allowance for doubtful debts 1,500
Bank 11,000
Cash 3,000
417,000 417,000
BHT1333 HOSPITALITY ACCOUNTING 2 DEGREE (HOSPITALITY)

Question 2: (Prior year question September 2009 Question 2)

Tarcy Enterprise is operated by Priscilla Tam. She provided the following Additional information:
Trial Balance for the year ended 30 June 2009: 1. Closing inventory was valued at RM175,000
Dr Cr 2. Included in the purchases were goods worth RM6,000 which had been
RM RM taken Priscilla for family use. No recording had yet been done
Inventory, 1 July 2008 160,000 3. General expenses accrued was RM500 as at year end
6% Long term loan 200,000 4. Commission received outstanding was RM1,000 as at year end
Water and electricity 4,300 5. Interest on loan has been overlooked by the book-keeper, only partly
Bank 6,000 settled
Capital 1,000,000 6. Allowance for doubtful debts is to be reduced to RM800 as at year end
Carriage inwards 1,800 7. Depreciation charges – Plant and machinery (15% on cost)
Purchases and Sales 956,000 1,254,600 Motor vehicles (20% on reducing balance)
Cash 8,800
Allowance for doubtful debts, 1 July 2008 1,000 Required:
Custom duty 3,000
Trade receivables and payables 136,000 68,000 Prepare the following for Tarcy Enterprisse:
Bad debts 3,700
Carriage outwards 3,000 a) Statement of Comprehensive Income for the year ended 30 June 2009;
Drawings 12,000
Freehold premises 800,000 b) Statement of Financial Position as at 30 June 2009
Motor vehicles 100,000
Plant and machinery 300,000
Accumulated depreciation: motor vehicles 12,000
Accumulated depreciation: plant & machinery 24,000
General expenses 2,200
Interest on loan 3,500
Discounts 600 800
Advertisement 16,000
Returns 4,500 3,000
Salaries 60,000
Commission received 6,000
2,575,400 2,575,400
BHT1333 HOSPITALITY ACCOUNTING 3 DEGREE (HOSPITALITY)

Question 3 - Cash valued at RM1,050

6. An error was found in which one third of the carriage inwards should
Brad Pitt is a stationery retailer. The following is the balance extract from be regarded as carriage outwards
his ledger account as at 30 June 2007: 7. Bank loan interest for the year is still outstanding as at year end

RM RM
Inventory @ 1 July 2006 5,300 Purchases 41,120 Required:
Repairs and maintenance 900 Sales 51,420 (a) Prepare Trial Balance (before making the adjustments in the additional
Salaries and wages 2,300 Returns inwards 1,730 information) for Brad Pitt Stationery Shop as at 30 June 2007;
Premises at cost 70,000 Returns outwards 2,200
Accumulated depreciation Utilities 650 (b) Then prepare Statement of Comprehensive Income for the year ended
: Premises 14,000 Drawings 2,100 30 June 2007; and
Motor vehicles 56,000 Discount allowed 650
Accumulated depreciation Discount received 2,270 (c) Statement of Financial Position as at 30 June 2007
: Motor vehicles 15,540 Advertising 610
Insurance on goods purchased 150 Duty on imports 520
Trade receivables 3,170 Capital 82,350
Trade payables 2,560 Bad debts 400
Allowance for doubtful debts 290 Rent 1,050
Commission received 3,200 Bank overdraft 1,200
5% Long term bank loan 16,000 Cash in hand 3,000
Carriage inwards 660 Carriage outwards 720

Additional information:
1. Inventory at the end of the accounting year was RM6,050
2. Non-current assets are to be depreciated as follows:
- Premises at 10% per annum on straight line
- Motor vehicle at 15% per annum using reducing balance method
3. Salaries and wages outstanding were RM150 and utilities paid in
advance were RM120
4. Bad debts to be written off amounted to RM700 and the owner has
decided to provide an allowance for doubtful debts of 10% as at year
end

5. Drawings made by Brad Pitt for personal use but not recorded in the
books were as follows:
- Goods for resale amounting to RM1,300
BHT1333 HOSPITALITY ACCOUNTING 4 DEGREE (HOSPITALITY)

Section 3: Extra exercise questions (for students’ own practice) Additional information:

1. Inventories as at 30 June 2005 were RM47,342

Question 1: 2. Non current assets are to be depreciated as follows:
Motor vehicles : 20% per annum on cost
The following Trial Balance was extracted from the books of Omega Shoes, Office equipment : 10% per annum on net book value (NBV)
a sole proprietor business, at 30 June 2005: 3. On 30 June 2005, the owner withdrew cash of RM1,250 for household
expenses. No entry has been made in the books.
Dr Cr 4. Utilities in trial balance inclusive an electricity bill covering the period
RM RM 16 June to 15 July 2005 amounting to RM900
Owner’s equity as at 1 July 2004 86,631 5. Allowance for doubtful debts is to be provided at 2% of outstanding
Drawings 8,500 trade receivables
Inventories as at 1 July 2004 54,387 6. The loan was taken on 1 October 2004 and no interest was made during
Bank 153,246 the accounting year
6% Bank loan repayable in 8 years 80,000
Trade receivables and payables 45,329 58,128 Required:
Motor vehicles at cost 60,000
Accumulated depreciation-motor vehicles 6,000 (a) Prepare the Statement of Comprehensive Income of Omega Shoes for
Office equipment at cost 25,858 the year ended 30 June 2005; and
Accumulated depreciation-office equipment 4,858
Sales and Purchases 386,768 600,235 (b) Prepare the Statement of Financial Position as at that date
Returns 4,586 3,854
Discounts allowed and Discount received 15,844 18,129
Bad debts 7,287
Allowance for doubtful debts as at 1 July 2004 678
Rent 18,000
Insurance – motor vehicles 1,452
- inventories 3,626
Carriage outwards 7,295
Salaries and wages 45,853
Printing and stationery 12,587
Utilities 7,895
858,513 858,513
BHT1333 HOSPITALITY ACCOUNTING 5 DEGREE (HOSPITALITY)

Question 2:

The following Trial Balance was extracted from the books of Mr Smith as at Additional information:
30 December 2006:
1. Rent received in arrears as at 31 December 2006 was RM1,000
Debit Credit 2. Insurance includes a total of RM2,000 paid for January and February
RM RM 2007
Sales and Purchases 68,080 215,580 3. Depreciation charges were to be provided as follows:
Returns 220 380 - Motor vehicles at 10% per annum on net book value (NBV)
Inventories as at 1 January 2006 18,400 - Buildings at rate of 1% per annum on cost
Rent received 9,000 4. Electricity charges outstanding for the year amounted to RM590
Building at cost 520,000 5. Allowance for doubtful debts is to be increased by RM500
Advertising expenses 27,600 6. Inventories as 31 December 2006 was RM6,520
Trade receivables and Trade Payables 168,000 100,000
Salaries and wages 68,000
Motor vehicles at cost 100,000
Insurance 24,000 Required:
Sundry expenses 15,000
Accumulated depreciation: Motor vehicles 40,000 Prepare the Statement of Comprehensive Income for the year ended 31
Accumulated depreciation: Buildings 64,000 December 2006 and the Statement of Financial Position for Mr Smith as at
Electricity and water 7,100 that date.
Allowance for doubtful debts 1,200
Discounts 3,000 7,000
Printing and stationery 2,496
Cash in hand 136,000
Bank overdraft 736
Capital 720,000
1,157,896 1,157,896