Question

A small meat processing plant starts its business, the owner (butcher) purchased

machines of 300,000 in value and equipment of 50,000. He rented the facilities

and purchased a delivery van of 60,000 in value. He received funds to start the

business in the amount of 40,000 and a bank loan in the amount of 100,000. The

rest of the assets were financed from his own money, leaving only 10,000 in the

bank account. He hired two people – a driver and a butcher, then he started his

business.

1) he purchased raw materials of 10,000 (VAT invoice, RM),

2) he paid for raw materials (BS),

3) he sold finished and non-finished goods – 70,000 (VAT invoice),

4) he issued goods 50.000 (GO),

5) he received payment into bank account (BS),

6) he calculated payroll– 8,000,

7) he transferred payroll to employee bank accounts,

8) he took 2,000 from cash-on-hand,

9) he purchased the petrol for the van – 500 (cash payment),

10) he purchased packaging – 300 (cash payment),

11) he purchased raw materials– 30,000 (BS),

12) he sold the goods to shops – 60,000,

13) he issued goods 40.000 (GO).

	Draw up the opening balance sheet, record the operations, close the accounts,
	establish the result of the activity and draw up the closing balance sweet.

Answer 1

OPENING BALANCESHEET  

	AMT
NON CURRENT ASSET
MACHINERY	300,000
EQUIPMENTS	50,000
DELIVERY VAN	60,000
BANK	10,000
CASH	140,000
	560,000
EQITY OR LIABILITY
BANK LOAN	100,000
CAPITAL	460,000
	560,000

DR CASH A/C CR

OPENING BALANCE	140,000	PAYABLE	10,000
SALES	70,000	PETROL EXPENSE	500
CAPITAL	2,000	PACKAGING	300
SALES	60,000	DRAWINGS	2000
	272,000		272,000
BALANCE B/D	259,200

BANK A/C

OPENING BALANCE	10,000	OUTSTANDING EXPE	8,000
RECEIVABLES	50,000	PURCHASE	30,000
		BALANCE C/D	22,000
BALANCE B/D	60,000 22,000		60,000

SALES	130,000
LESS :-COST OF SALES	-40,000
GROSS PROFIT	90,000
LESS: OTHER EXPENSES	-11,500
PROFIT	78,500

CLOSING BALANCE SHEET

	AMT
ASSET
MACHINERY	300,000
EQUIPMENTS	50,000
DELIVERY VAN	60,000
BANK	22,000
CASH	259,200
	646,200
EQITY OR LIABILITY
BANK LOAN	100,000
CAPITAL+DROWINGS	462,000
RETAINED EARNINGS	78,500

640,500