Sulaiman /Wana Final Accounts with Adjustments Nov2018

Suggested Answer Question 4: Pamungkas

PAMUNGKAS ENTERPRISE

ai) Journal Entries:

The General Journal - Adjustments

Date Details Dr (RM) Cr (RM)
31-Dec-18 Inventory 4,500
Cost of goods sold 4,500
(Recording the ending inventory value)

31-Dec-18 Office equipment 6,000

Capital 6,000
(Recording office equipment.)

31-Dec-18 Depreciation on office equipment 600

Accumulated Depreciation-office
600
equipment
(Recording depreciation on office equipment.)

Pamungkas Enterprise
Statement of Comprehensive Income for the Year Ended 31 December 2018
RM RM RM
Sales 118,040
(-)Return Inwards (3,705)
Net Sales 114,335
(-) Cost of Goods Sold
Opening Inventory 10,140
(+) Purchases 55,380
(+) Wages 1,859
(+) Import duties 3,614
(+) Carriage Inwards 2,054
(+)Insurance on purchases 5,460
(-) Return Outwards (5,070)
Net Purchases 63,297
Cost of Goods Available for Sales 73,437
(-)Closing Inventory (4,500)
Cost of Goods Sold 68,937

Gross Profit 45,398

(+) Income from other Sources
Commission received 2,678
Discount Received 2,405
Rent Received 8,840

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Sulaiman /Wana Final Accounts with Adjustments Nov2018

13,923
Total Income 59,321

(-) Operating Expenditure

General and Administrative Expenses:
General expenses 3,120
Depreciation on office equipment(1200+600) 1,800
Salaries 9,854
General insurance expenses 2,691
Building maintenance expenses 975
Depreciation on Building 1,794
Medical expenses 3,588
Entertainment expenses 2,314
Sundry expenses 715
Water and electricity expenses 8,840
35,691
Selling and Distribution Expenses:
Carriage Outwards 1,703
Motor vehicle maintenance expenses 507
Depreciation in Motor Vehicle 4,875
7,085
Interest and Financing Expenses:
Discount allowed 884
Bad Debts 975
Interest on loan 806
2,665
Total Expenditure 45,441
Net Profit 13,880

Pamungkas Enterprise
Statement of Financial Position as at 31 December 2018
RM RM RM
Non-current Assets:

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Sulaiman /Wana Final Accounts with Adjustments Nov2018

Land 101,595
Building 89,700
(-) Accumulated Depreciation: Building (11,934)
77,766
Motor Vehicle 48,750
(-) Accumulated Depreciation: Motor Vehicle (14,625)
34,125
Office equipment(12000+6000) 18,000
(-)Accumulated depreciation: Office equipment (1,800)
(1200+600) 16,200
Total Noncurrent Assets 229,686

Investments 26,000

(+) Current Assets:

Cash 3,653
Bank 44,820
Closing Inventory 4,500
Trade Debtors 6,760
(-)Provision for Doubtful Debts (2,340)
4,420
Non trade debtors 4,095
61,488
(-) Current Liabilities:
Bank(Overdraft) 19,500
Trade Creditors 11,440
Non trade creditors 16,120
47,060
Working Capital 14,428
Total Net Assets 270,144

Financed by:
Owner's Equity:
Opening Capital(118288+6000) 124,288
(+) Net profit 13,880
(-) Drawings (9,854)
Closing Capital 128,314

Long term Liabilities:

6% Long Term Loan 141,800

Total Owner's Equity and Long Term Liabilities 270,144