UEC 2016

The Trial Balance as at 31 December 2015 of C & G Company failed to agree, showing an excess of
debit over credit balances of RM491. The amount was recorded in a Suspense account. The financial
statements were then prepared and net profit of RM11,250 was calculated.

Subsequently, the following errors and omissions were found in the books:
(i) The bank charges of RM35 had not been posted although it had been recorded in the Cash Book.
(ii) A credit note of RM480 received from Tang Bhd (a creditor) had been correctly recorded in the
Returns account but debited to Tang Bhd as RM450.
(iii) Inventory on 31 December 2015 was overstated by RM200.
(iv) Discount received totaled RM228 had incorrectly been posted as discount allowed.
(v) Goods worth RM550 sold to Syarikat Meng was posted to its account as RM650.
(vi) Loss on disposal of an old truck of RM1,230 had been correctly entered in the Disposal account
but had been debited to Depreciation account.
(vii) No record for an insurance claim of RM600 for inventory destroyed by flood during the year.

REQUIRED:
(a) Journal entries to correct the above items (Narrations are not required)
(b) a statement of corrected net profit.
UEC 2020
Karen’s Trial Balance as at 31 December 2019 did not agree. She opened a Suspense Account for the
difference.

The following is the recent Statement of Financial Position as prepared by the company.
RM
Assets
Furniture 14,500
Inventory 7,980
Trade / Accounts Receivable 5,160
Cash at Bank 4,000
Cash in Hand 270
Suspense Account 430__
32,340
Equity and Liabilities
Capital as at 1 Jan 2019 25,000
Net Loss (510)
Drawings (320)
Loan 5,000
Trade / Accounts Payable 3,170_
32,340
On checking the books, the following items were revealed:
(i) Furniture Account and Commission Received Account were each understated by RM2,250.
(ii) A cheque payment of RM220 to Melvin ha d been posted to Kelvin’s Account.
(iii) Cash sale of RM2,040 had been entered in the Cash Book correctly, but had been entered in the
Sales Account as RM2,400.
(iv) A bad debt recovered amounting to RM155 had been credited to Bad Debts Account as RM150.
Other entries are correct.
(v) An amount of RM65 falls under the discount received column in the cash book has not been
posted.
(vi) Purchases Returns of RM140 to Ah Dai had been debited to Ah Dai’s Account and credited to
Purchases Returns Account and Cash Account respectively.

REQUIRED:
(a) Journal entries to correct the above errors (narration are not required)
(b) Suspense Account
(c) A statement to show the adjusted profit for the year ended 31 December 2019
(d) Revised Statement of Financial Position as at 31 December 2019
(UEC 2020)