Tutorial 4 Posting to Ledger & Trial Balance 1

TUTORIAL 4 – Posting to ledger and trial balance

Additional information:
Section A Closing inventory as at 31 May 2018 amounted to RM10,950.

1. (a) Explain the various ledgers in an accounting system. Question 5

(b) What are control accounts? Explain.
2. (a) What is a trial balance? The following balances were extracted from the book of Alexis Trading as
(b) What are the purposes of preparing trial balance? at 31 Dec:
(c) What could be the reasons for the trial balance not to balance?
3. What are the basic financial statements are are required to be prepared by RM RM
businesses? What are their purposes? Cash in hand 29,000 Office Equipment 31,500
Cash at bank 38,000 Trade receivable 45,700
Question 4 Motor Vehicles 65,000 Inventory 32,650
Sales 97,300 Capital 100,000
Transfer all the balances in Trial Balance below to Statement of Profit or Trade Payable 60,050 Bank loan 75,000
Loss and Statement of Financial Position. Purchases 82,000 Salaries and Wages 8,500

MU Trading Required:
Trial Balance as at 31 May 2018 Prepare a proper Trial Balance for Alexis Trading as at 31 Dec.
Debit Credit
RM RM Question 6
Inventories @ 1 June 2017 21,950
Office equipment 20,000 Bob Stanley is a sole proprietor who keeps records of his cash and bank
Motor vehicles 60,000 transactions. This transaction for the month of May:
Trade receivables 26,000
Bank 18,000 May
Trade payables 18,500
Drawings 14,000 1 Cash in hand RM400, cash at bank RM6,000.
Loan 50,000 4 Stanley received a cheque for RM1,200 from W. Albert which
Sales 475,000 was paid directly into the bank. This represented cash sales.
Purchases 400,000
Carriage outward 5,600 6 Paid wages in cash RM60.
Discount received 3,800 8 Sold goods for cash RM300.
Discount allowed 4,000
Salaries 35,000 10 Received cash from G. Small for RM600, in full settlement of
Capital 57,250 a debt of RM640; this was paid directly into the bank.
604,550 604,550
Tutorial 4 Posting to Ledger & Trial Balance 2

11 Paid sundry expenses in cash RM48. 9 Paid rent by cheque RM 150.

15 Bought fixture on credit from Cozy RM1,200
14 Purchased goods by cheque for RM1,400.
17 Paid ByeBye Trading by cheque for RM740
18 Paid J. Sandoz a cheque of RM190 in full settlement of a debt 21 Return goods to ByeBye Trading RM500
of RM210. 24 Kylan paid his account by cheque RM815
23 Withdrew RM25 from the bank to pay the office cleaning 31 Bought a van paid by cheque RM6,250
company.
Closing inventory is RM5,200 as at 31 October.
24 Paid wages (production related) in cash RM60.
26 Sold goods for cash RM380. Required:
a) Record the above transactions into the “T” accounts.
28 Paid salary by cheque RM240.
b) Prepare the Trial Balance as at 31 October
31 Retained cash amounting to RM600 and paid the remaining to c) Prepare the Statement of Profit or Loss for the month ended 31
the bank. October.
d) Prepare the Statement of Financial Position as at 31 October.
Required:

a) Record the above transactions into the “T” accounts. Question 2

b) Prepare Statement of Profit or Loss for the month ended 31 May.
From the following list of balances extract from Evergreen Trading’s book
as at 31 May 2018

Section B: Extra exercise questions (for students’ own practice)

RM RM
Question 1 Cash in hand 400 Trade payables 5,425
Cash at bank 6,800 Sales 12,400
Melany started her business, Dream Accessories Shop on 1 October Capital 18,000 Purchases 9.400
The following transactions occurred during the month: Drawings 300 Returns Outwards 275
Motor vehicles 8,500 Wages 5,000
Oct Trade receivables 2,100 Rent & rates 3,600
1 Started the business with RM15,000 in the bank.
2 Bought goods RM10,450 on credit from ByeBye Trading. Required:
5 Cash sales RM5,100. Prepare a proper Trial Balance for Evergreen Trading as at 31 May 2018.
6 Paid wages in cash RM110.
7 Sold goods RM1,650 on credit to Kylan