ABFA1153 FINANCIAL ACCOUNTING 1 1 May 2019

Tutorial 11 – Year End Adjustments

Section 3: Extra exercise questions
Prepaid insurance Account
Question 1 RM
Commission Account Dec31 Insurance 4,000
RM RM
Mar31 Bank 7,000
July31 Bank 8,000 Journal Entries
Oct 5 Bank 7,500 Date Dr Cr
Dec31 Acc Commission 9,000 Dec31 SPL 31,500 RM RM
31,500 31,500 Dec 31 Dr Prepaid insurance 4,000
Cr Insurance 4,000
Accrued commission Account (Insurance paid for the next financial year)
RM
Dec 31 Bal c/d 9,000 Dec31 Commission 9,000 Dec 31 Dr SPL 20,000
Cr Insurance 20,000
(Insurance account closed)
Journal Entries
Date Dr Cr
RM RM
Dec 31 Dr Commission 9,000
Cr Accrued commission 9,000 Question 3
(Commission not yet paid) Interest received Account
RM RM
Dec 31 Dr SPL 31,500 Dec31 SPL 2,500 Aug31 Bank(60kx5%x½) 1,500
Cr Commission 31,500 (March-Aug)
(Commission account closed) Dec31 Interest receivable 1,000
(60k x 5% x 4/12)
2,500 2,500

Question 2
Insurance Account Interest receivable Account
RM RM RM
Mar1 Bank(Mar,Apr,May) 6,000 Dec31 SPL 20,000 Dec31 Interest received 1,000
July3 Bank(Jun,Jul,Aug) 6,000 “ Prepaid in 4,000
Aug28 Bank(Sep,Oct,Nov) 6,000 (Jan & Feb)
Dec8 Bank(Dec, Jan,Feb) 6,000
24,000 24,000
ABFA1153 FINANCIAL ACCOUNTING 1 2 May 2019

Journal Entries
Date Dr Cr (a) i)
RM RM Salary Account
Dec 31 Dr Interest receivable 1,000 RM RM
Cr Interest received 1,000 Dec31 Bank 15,000 Jan1 Accrued salary 1,500
(Interest not yet received) Accrued Salary 4,500 Dec31 SPL 18,000
19,500 19,500
Dec 31 Dr Interest received 2,500
Cr SPL 2,500
(Interest account closed) ii)
Insurance Account
RM RM
Question 4 Jan1 Prepaid Insurance 700 Dec31 SPL 8,400
Rent received Account Dec31 Bank 9,100 Dec31 Prepaid insurance 1,400
RM RM 9,800 9,800
Dec31 SPL 16,000 May1 Bank(May,June,Jul) 6,000
Rent rec'd in
adv 2,000 Aug1 Bank(Aug,Sept,Oct) 6,000 iii)
Nov1 Bank(Nov,Dec,Jan) 6,000 Utility Account
18,000 18,000 RM RM
Dec31 Bank 7,500 Jan1 Accrued Utility 1,000
Rent received in advance Account SPL 6,000
RM Dec31 Prepaid Utility 500
Dec31 Rent received 2,000 7,500 7,500

Journal Entries iv)

Date Dr Cr Stationery Account
RM RM RM RM
Dec 31 Dr Rent received 2,000 Jan1 Prepaid stationery 900 Dec31 SPL 3,600
Cr Rent received in advance 2,000 Dec31 Bank 2,400
(Rent received for next financial year) “ Accrued Stationery 300
3,600 3,600
Dec 31 Dr SPL 16,000
Cr Rent received 16,000
(Rent received account closed) v)
Commission received Account
RM RM
Question 5 Jan1 Accrued Com. Rec’d 900 Dec31 Bank 5,850
ABFA1153 FINANCIAL ACCOUNTING 1 3 May 2019

Accrued Com. Add: Income

Dec31 SPL 5,400 Dec31 Rec’d 450 Commission 5,400
6,300 6,300 Rent 12,000
Interest 4,200

Less: Expenditure
vi) Salary 18,000
Rent received Account Insurance 8,400
RM RM Utility 6,000
Dec31 SPL 12,000 Jan1 Accrued rental rec’d 1,000 Stationery 3,600
Rental rec’d in adv. 2,000 Dec31 Bank 13,000

14,000 14,000 Pentax Enterprise

SFP (extract) as at 31 December
RM RM
Current assets
vii) Prepaid insurance 1,400
Interest received Account Prepaid utility 500
RM RM Accrued commission 450
Jan1 Accrued int. Rec’d 350 Dec31 Bank 5,600
Dec31 SPL 4,200
“ Rental rec’d in adv. 1,050 Current liabilities
5,600 5,600 Accrued salary 4,500
Accrued stationery 300
Rent received in advance 2,000
Interest received in advance 1,050

(b)
Pentax Enterprise
SPL(extract) for the year ended 31 December
RM
Gross Profit xxx