QEBF1013 Mid-semester Exam, Sem 1, 2013-14QUESTIONThe following trial balance as at 31 December 2012 has been extracted fromthe ledger of Jasmine, a sole trader:(i) Please put the value of each account in the correct Dr or Cr column.Account$DebitCreditCapital83,813Sales259,870Trade payables19,840Purchases returns13,407Provision for bad debts512Discounts allowed2,306Discounts received1,750Purchases150,680Bank Loan15,000Sales returns5,624Carriage outwards4,562Drawings18,440Carriage inwards11,830Rent and rates25,973Heating and lighting11,010Telephone expense2,410Advertising expense5,980Salaries38,521Bad debts2,008Cash in hand534Cash at bank4,440Stock (opening)15,654Trade receivables24,500Fixture & Fittings120,740Motor van24,000Accumulated depreciation:Fixture & Fitting63,020Motor van12,000TOTAL:The following additional information as at 31 December 2012 is available:(1) Closing stock RM17,750(2) Rent and rates have been prepaid by RM 6,555(3) Advertising has been prepaid by RM 680(4) Heating and lighting is accrued by RM1,360(5) Salaries is accrued by RM3,000(6) Telephone expenses is still outstanding by RM210(7) The provision for bad debts is to be adjusted so that it is 3% of trade receivables.(8) Fixture & Fitting is to be depreciated at 10% per annum using the reducing balancemethod.(9) Motor van is to be depreciated at 10% per annum using straight line methodRequired:(ii) Prepare the journal entries using the additional information given in (1) - (9).(iii) Prepare a worksheet showing the unadjusted trial balance, adjustments and adjustedtrial balance.(iii) Prepare an income statement for the year ended 31 December 2012 and a balancesheet as at that date.

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A1-TB-WorksheetUnadjusted TBAdjustmentsAdjusted TBAccount$DebitCreditDebitCreditDebitCreditCapital83,81383,8130.083,813Sales259,870259,8700.0259,870Trade payables19,84019,8400.019,840Purchases returns13,40713,4070.013,407Provision for bad debts5125122230.0735Discounts allowed2,3062,3062,3060.0Discounts received1,7501,7500.01,750Purchases150,680150,680150,6800.0Bank Loan15,00015,0000.015,000Sales returns5,6245,6245,6240.0Carriage outwards4,5624,5624,5620.0Drawings18,44018,44018,4400.0Carriage inwards11,83011,83011,8300.0Rent and rates25,97325,973655519,4180.0Heating and lighting11,01011,0101,36012,3700.0Telephone expense2,4102,4102102,6200.0Advertising expense5,9805,9806805,3000.0Salaries38,52138,5213,00041,5210.0Bad debts2,0082,0082,0080.0Cash in hand5345345340.0Cash at bank4,4404,4404,4400.0Stock (opening)15,65415,65415,6540.0Trade receivables24,50024,50024,5000.0Fixture & Fittings120,740120,740120,7400.0Motor van24,00024,00024,0000.0Accumulated depreciation:0.00.0Fixture & Fitting63,02063,0205,7720.068,792Motor van12,00012,0002,4000.014,400Stock (closing) - Income Statement177500.017,750Stock (closing) - Balance Sheet17,75017,7500.0Prepaid rent & rates6,5556,5550.0Prepaid advertising6806800.0Accrued heating & lighting1,3600.01,360Accrued salaries3,0000.03,000Accrued telephone2100.0210Provision for bad debts expense2232230.0Depreciation expense - fixture & fitting57725,7720.0Depreciation expense - motor van24002,4000.0TOTAL:469,212469,21237,95037,950499,927499,927(1) Closing stock RM17,750Dr Closing stock (Balance Sheet)17750Cr Closing stock (Income Statement)17750(2) Rent and rates have been prepaid by RM 6,555Dr Prepaid rent & rates6555Cr Rent & rates6555(3) Advertising have been prepaid by RM 680Dr Prepaid advertising680Cr Advertising680(4) Heating and lighting is accrued by RM1,360Dr Heating & lighting1360Cr Accrued heating & lighting1360(5) Salaries is accrued by RM3,000Dr Salaries3000Cr Accrued salaries3000(6) Telephone expenses is still outstanding by RM210Dr Telephone expense210Cr Accrued telephone210Workings(7) The provision for bad debts is to be adjusted so that it is 3% of trade receivables.3%x24500735Dr Provision for bad debts expense223Cr Provision for bad debts223(8) Fixture & Fitting is to be depreciated at 10% per annum using the reducing balance method.10% x(120,740 - 63,020)5772Dr Depreciation expense - fixture & fitting5772Cr Accumulated depreciation - fixture & fitting5772(9) Motor van is to be depreciated at 10% per annum using straight line method.10% x240002400Dr Depreciation expense - motor van2400Cr Accumulated depreciation - motor van2400

ISJasmineIncome Statement for the year ended 31 December 2012Sales259,870Less: Sales returns5,624Net Sales:254246LessCost of goods sold:Opening stock15,654Purchases150,680Carriage-inward11,830178164Less: Purchases returns13,407Less: Closing Stock17,750COGS :147007Gross profit:107239Add: Discount received1,750108989Less Expenses:Discount Allowed2,306Carriage-Outward4,562Rent & Rates19,418Bad Debts2,008Salaries41,521Heating & Lighting12,370Telephone2,620Advertising5,300Increase in Prov.bad debts223Dep Fixture & Fitting5,772Dep Motor van2,400Total Expenses:98,500Net Profit10489

BSJasmineBalance Sheet as at 31 December 2012Fixed Assets:CostAccDepNBVFixture & Fittings120,7406879251,948Motor Van24,000144009,60061548Current Assets:Stock17750Trade Debtors24,500Provision for bad debts-735Cash534Bank Account4,440Prepayment- Rent6555- Advertising68053724Current LiabilitiesCreditors19,840Accruals - Light & Heat1360- salaries3000- telephone21024,410Net Working Capital29,314Net Assets Employed90,862Financed by:Capital83,813Added net profits1048994302Less Drawings18,44075,862Long-term liabilitiesBank Loan15,00090862