In-class exercise
Given below is a Trial Balance of Aliba Trading on 30
June 2019.
Aliba Trading
Trial Balance as at 30 June 2019
Debit
Credit
RM
RM
Building
60,000
Fixtures and fittings
12,000
Office equipment
10,000
Inventory (1 July 2018)
13,500
Bank
3,450
Cash
2,340
Debtors and creditors
6,300
8,500
Loans
15,000
Capital
70,000
Drawings
1,250
Purchases
51,150
Sales
72,500
Sales returns
900
Purchase returns
400
Carriage inwards
1,100
Purchase discount
680
Sales discount
400
Wages expense
8,000
Interest expense
1,500
Commission received
1,350
Insurance expense
1,880
Repairs and maintenance expense
1,560
171,880
171,880
Aliba Trading has the following additional information
for the accounting period ended 30 June 2019.
Stock count revealed that inventory on 30 June 2019 is valued at
RM14,300 at cost and RM16,000 at market value.
Aliba Trading declared a bonus of half-month pay to reward all
permanent employees on 30 June 2019. The bonus results in a total
of RM4,000 in wages, which will be paid in August 2019.
Commission received is for the period June to August 2019.
Insurance purchased is valid from 1 January to 31 December
2019.
Required:
Prepare a Statement of Comprehensive Income for the year ended 30 June 2019 showing clearly the cost of sales.
In-class exercise
Given below is a Trial Balance of Aliba Trading on 30
June 2019.
Aliba Trading
Trial Balance as at 30 June 2019
Debit
Credit
RM
RM
Building
60,000
Fixtures and fittings
12,000
Office equipment
10,000
Inventory (1 July 2018)
13,500
Bank
3,450
Cash
2,340
Debtors and creditors
6,300
8,500
Loans
15,000
Capital
70,000
Drawings
1,250
Purchases
51,150
Sales
72,500
Sales returns
900
Purchase returns
400
Carriage inwards
1,100
Purchase discount
680
Sales discount
400
Wages expense
8,000
Interest expense
1,500
Commission received
1,350
Insurance expense
1,880
Repairs and maintenance expense
1,560
171,880
171,880
Aliba Trading has the following additional information
for the accounting period ended 30 June 2019.
Stock count revealed that inventory on 30 June 2019 is valued at
RM14,300 at cost and RM16,000 at market value.
Aliba Trading declared a bonus of half-month pay to reward all
permanent employees on 30 June 2019. The bonus results in a total
of RM4,000 in wages, which will be paid in August 2019.
Commission received is for the period June to August 2019.
Insurance purchased is valid from 1 January to 31 December
2019.
Required:
Prepare journal entries to account for all year-end
adjustments.
Prepare a Statement of Comprehensive Income for the year ended 30
June 2019 showing clearly the cost of sales.
Prepare a Balance Sheet as at 30 June 2019.
REVENUE | |||
SALES | 72500 | ||
LESS SALES RETURNS | 900 | ||
NET SALES | 71600 | ||
INDIRECT INCOME | |||
COMMISSION RECEIVED | 1350 | ||
LESS COMMISSION FOR THE PERIOD | 180 | ||
FROM JULY TO AUG 2019 | |||
(1350*2/15) | |||
NET COMMISISON | 1170 | ||
TOTAL REVENUE | 72770 | ||
OPENING STOCK | 13500 | ||
PURCHASES | 51150 | ||
LESS PURCHASE RETURNS | -400 | ||
ADD WAGES | 8000 | ||
ADD CARRIAGE INWARD | 1100 | ||
LESS CLOSING STOCK | -14300 | ||
59050 | |||
INDIRECT EXPENSES | |||
INTEREST | 1500 | ||
INSURANE | 940 | ||
1880*6/12 | |||
BONUS | 4000 | ||
TOTAL COST OF SALES | 65490 | ||
NET PROFIT | |||
TOTAL REVENUE -COST OF SALES | 7280 |
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