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QUESTION 2
The Balance Sheet of Syarikat Siti Ayu at at 31 December 2019 shows as below:
| DESCRIPTION | RM |
| Cash | 11,270 |
| Debtor | 20,900 |
| Provision for bad debts | 400 |
| Inventory | 52,318 |
| Equipment | 25,400 |
| Provision for depreciation | 7,620 |
| Creditor | 18,076 |
| Loans | 19,000 |
| Capital | 59,714 |
| Drawings | 18,216 |
| Sales | 108,416 |
| Cost of Sales | 58,900 |
| Emoluments | 18,920 |
| Interest | 1,852 |
| Bad debts | 650 |
| Rent | 4,800 |
| | 426,452 |
Additional Info:
1. A physical inspection on 31 December 2019 found that the inventory value was RM51,987.
2. Depreciation of equipment is at a rate of 15% per year using the straight line method.
3. Sales include an amount of RM4,520 that has been received from the customer but the goods have not been delivered.
4. Emoluments accrued amounting to RM422.
5. Bad debt written off is RM650 but wrongly debited to bad debt expense. Bad debt provision is at a rate of 4% per annum.
Required:
1. Adjustment Journal based on additional information.
2. Trial balance on December 31, 2019 after the adjustment journal.
Answer & Explanation
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