ABFA1023 FUNDAMENTALS OF ACCOUNTING 1 SKH2008 revised Sep.

2010

Tutorial 2

Question 1

(a)
Item
reIerence Increase in valuation Decrease in valuation
Tick iI no
eIIect
1 2,700
2 15,600
3 Free sample, not Ior sale b
4 Credit purchases should be included in inventory b
5 412
6 7,680


(b) Syarikat Perabot Manjalara
Statement oI Adjusted Inventories as at 30 September 2008
RM RM
Value oI physical inventory count 307,398
Add: Goods sent on sale or return basis 7,680
315,078
Less: 1 Inv. overstated 2,700
2 Inv. cost over-priced 15,600
Loss on damaged inv. 412 (18,712)
Revised closing inventories as at 30 September 2008 296,366

c) Syarikat Perabot Manjalara
Statement oI Adjusted Net ProIit Ior the year ended 30 September 2008
RM
Net proIit per draIt Iinancial statements 517,998
Less: Decrease in closing inventories [307,398 29,3( 11,032
Revised net proIit 506,966


Question 2

Goodyear Ltd.
Statement oI Adjusted Inventories as at 31 December 2007
RM RM
Value oI physical inventory count as at 7 January 2008 96,530
Add: a Consignment goods [1920 x 7( 1,440
b Returns outwards in Jan 2008 20
c Sales in Jan 2008 [100 x 7( 1,200

d Inventory count sheet understated
[800 80( 720 3,10
Revised closing inventories as at 31 December 2007 100,140


e Adfustment is not required because the returns inwards was already
included in closing inventories as at 31 December 2007.

ABFA1023 FUNDAMENTALS OF ACCOUNTING 2 SKH2008 revised Sep. 2010

Question 3

(a) Yuan Ltd
Statement oI Adjusted Inventories as at 29 February 2008

Value oI physical inventory count as at 9 March 2008 100,600
Add: 1 Sales added back into inventory at cost
U43,838 - U43,838 x 10 x 10012 33,400
3 Returns outwards in March 2008 850

Inventory borrowed by marketing dept.
U1,0 x 10012 1,320

Goods sent on sale or return basis
U400 x 10012 320 35,890
136,490
Less: 2 Purchases in March 2008 14,000

3 Returns inwards in March 2008
U4,170 x 10012 3,336
4 Office cleaning materials 600
7 Samples from suppliers 20 (17,956)
Revised closing inventories as at 29 February 2008 118,534



(b) Yuan Ltd
Statement oI Adjusted Net ProIit Ior the year ended 29 February 2008

Net proIit per draIt Iinancial statements 249,600
Add: Goods sold not yet recorded 400
Increase in value of closing inventories 17,934 18,334
Revised net proIit 267,934

Yuan Ltd
Statement oI Adjusted Current Assets as at 29 February 2008

Current assets per draIt Iinancial statements 300,000
Add: Increase in closing inventories 17,934
Increase in trade receivables 400 18,334
Revised current assets 318,334

ABFA1023 FUNDAMENTALS OF ACCOUNTING 3 SKH2008 revised Sep. 2010

Question 4

Cobden Ltd
Statement oI Adjusted Inventories as at 31 May 2009

Value oI physical inventory count 87,612
Add: c Inv. under-added 72
d Purchases in May 2009 omitted 2,010
f Purchases in May 2009 omitted 638 2,720
90,332

Less: b Loss on damaged inv. U200 U110 - U40 130
c Inv. over-added 126
e Inv. transferred wrongly U1,243 - U1,234 9
g Portable generators on hire 347
h Samples by suppliers 63

i Goods sent on sale or return basis adfusted
to cost U02 - U418 184
f Goods received on sale or return basis 267 (1,126)
Revised closing inventories as at 31 May 2009 89,206

(a) No adjustment is required because the net realisable value (800 - 120
680) is higher than cost oI 570.