Topic 3 Balancing off and Final Accounts

PAL0022
Balancing off Accounts and Trial Balance

Question 1
During the first month of operation, the following events took place in 2013.
Date

Description
Nov 1 Johan began his business by contributing RM1,000 cash
into the business
5 Purchased RM300 of office equipment on account from
Best Equipment Company
10 Paid RM100 cash for office supplies

Double Entry
Dr. Cash
Cr. Capital

15 Bought RM500 of office equipment by cash

REQUIRED
Record all the business entries to ledger accounts and balance off the accounts.
Question 2
Johan continued its business with all the balances from Question 1. During December 2013, the
following transactions occurred.
Date

Description
Dec 5 Johan invested an additional of RM2,000 cash
8 Paid RM100 for rent
11 Paid RM200 cash for office supplies
20 Bought RM2,000 goods on credit from Jimmy Trading
22 Paid all the amount owing to Best Equipment
24 Cash purchases RM1,000
26 Cash sales RM2,500
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Double Entry

Topic 3 Balancing off and Final Accounts

28 Sold goods on credit to HT Enterprise RM500

29 Paid RM1,000 cash to Jimmy Trading
30 Collected the full amount due from HT Enterprise

REQUIRED
a) Continue the ledger accounts (from Question 1) for each of these transactions and
balance off the accounts.
b) Prepare a Trial Balance as at 31 Dec 2013 using the following format.
Johan
Trial Balance
As at 31 Dec 2013
Accounts
Debit (RM)
Credit (RM)

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Topic 3 Balancing off and Final Accounts

Question 3
Below is the list of balances from accounting book of Tony Trading as at 31 Dec 2013.
Accounts
Sales
Purchases
Inventory 1 Jan 2013
Inventory 31 Dec 2013
Carriage outwards
Carriage inwards
Returns inwards
Returns outwards
Salaries and wages
Motor expenses
Rental paid
Discount received
Rental received
Insurance expense
Buildings
Motor vehicles
Accounts Receivable
Long term loan
Accounts Payable
Bank overdraft
Cash in hand
Drawings
Capital

RM

Debit (RM)
21,000
12,000
18,500
10,000
300
250
550
500
2,500
700
600
700
500
1,200
1,700
2,500
5,000
4,500
3,500
4,000
200
2,200
13,500

REQUIRED
Prepare a Trial Balance as at 31 Dec 2013 based on the above information.

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Credit (RM)

Topic 3 Balancing off and Final Accounts

Capital Capital
2013
Nov 1
Cash

2013

Cash Account
2013

2013
Nov 1

Capital

1000

2013

Office Equipment
2013

2013

Best Equipment Company

2013

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RM
1000

Topic 3 Balancing off and Final Accounts

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Topic 3 Balancing off and Final Accounts

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Topic 3 Balancing off and Final Accounts

Question 4

The following is the list of balances in the accounting ledger of Sun Flower as at 31 December
2012.
RM
Cash
Bank
Accounts Receivable
Supplies Expenses
Insurance
Office furniture
Accounts Payable
Commission Received
Sales
Capital
Drawings
Purchases
Salary
Rent
Utility expenses
Long term loan
Opening inventory
Advertising expenses
Carriage outwards
Closing inventory RM3,000

3,300
7,700
2,900
2,300
1,600
30,000
4,500
600
105,800
26,000
1,000
66,000
1,900
12,400
2,600
5,000
5,000
2,300
2,900

Required:
Prepare Trial Balance, Income Statement and Statement of Financial position for Sun
Flower.

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Topic 3 Balancing off and Final Accounts

Sun Flower
Trial Balance As at 31 December 2012
RM

Sun Flower
Income Statement for the year ended 31 Dec 2012
RM
RM
Sales
Less: Cost of goods sold
Opening inventory
Purchases
Less: Closing inventory
Gross Profit
Add: Commission received
Gross Profit/Loss
Less: Expenses
Supplies expenses
Insurance
Salary
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RM

RM

Topic 3 Balancing off and Final Accounts

Rent
Utility expenses
Advertising
Carriage outwards
Net Profit/Loss

Sun Flower
Statement of Financial Position As at 31 December 2012
RM
RM
Non-current Assets
Office furniture
Current Assets
Inventory
Accounts Receivable
Bank
Cash
Total assets
Current Liabilities
Accounts Payable
Long term liability
Long term Loan

Capital
Balance as 1 Jan 2012
Add: Net profit for the year
Less: Drawings
Total capital
Total liabilities + capital

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Topic 3 Balancing off and Final Accounts

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Question 5
The following balances have been extracted from the general ledger of Babies and Toys Trading
as at 31 December 2010.
Accounts
Purchases
Sales
Return inwards
Return outwards
Carriage inwards
Carriage outwards
Insurance
Motor vehicles (cost)
Land and building
Cash in hand
Bank overdraft
Office equipment
Wages and salaries
Discount allowed
Discount received
Rental received
Trade receivables/debtors
Trade payables/creditors
Inventory 1 January 2013
Inventory 31 December 2013
Capital, 1 July 2013

RM
50,000
162,000
2,500
4,000
600
1,000
2,500
70,000
94,000
5,000
3,000
4,200
10,000
1,000
1,000
6,000
4,000
3,000
1,500
1,500
67,300

REQUIRED:
a) Prepare the Trial Balance sheet as at 31 December 2013.
b) Prepare the Income Statements for the year ended 31 December 2013
c) Prepare the Statement of Financial Position as at 31 December 2013.

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