Problem Questions

1.

a.
Date
31/12/10
31/12/10

Rent Expense
RM
Date
700
31/12/10
30

Particulars
Bank
Accrued rent

Particulars
Income statement

730

Date

Particulars

RM

31/12/10

Balance c/d

30

RM
730
730

Accrued Rent
Date
Particulars
31/12/10
1/1/11

RM

Rent expense

30

Balance b/d

30

b.
Date
31/12/10

Date

Particulars
Bank

Insurance Expense
RM
Date
Particulars
500
31/12/10 Prepaid insurance
31/12/10 Income statement

RM
40
460

500

500

Prepaid Insurance
RM
Date

Particulars

Particulars

RM

31/12/10

Balance c/d

40

Commission Revenue
RM
Date
750
31/12/10

Particulars
Bank

RM
650

Accrued
commission
revenue

100

31/12/10
1/1/11

Insurance Exp.
Balance b/d

Date
31/12/10

Particulars
Income
statement

40
40

c.

31/12/10

750

Date

Particulars

31/12/10

Commission
revenue
Balance b/d

1/1/11

750

Accrued Commission Revenue

RM
Date
Particulars
100

RM

31/12/10

Balance c/d

100

Rent Revenue
RM
Date
100
31/12/10

Particulars
Bank

RM
400

100

d.
Date
31/12/10

31/12/10

Particulars
Rent
revenue
received
in
advance
Income
statement

300
400

Date
31/12/10

400

Rent Revenue Received in Advance

Particulars
RM
Date
Particulars

RM

Balance c/d

100

100

31/12/10

Rent revenue

1/1/11

Balance b/d

100

2.
Date
1/4/09
1/4/09

Particulars
Prepaid
insurance
Bank

Date

Particulars

1/4/09

Bal b/d

Date
31/3/10

Particulars
Income
statement

Insurance Expense
RM
Date
Particulars
1,100
31/3/10
Income statement

RM
4,500

3,400
4,500

4,500

Prepaid Insurance
RM
Date
1,100

1/4/09

Rent Revenue
RM
Date
12,500
1/4/09
1/4/09
30/9/09
31/3/10

Particulars

RM

Insurance exp.

Particulars
Unearned
revenue
Bank
Bank
Accrued
revenue

1,100

rent

3,000
6,000
rent

12,500

Date
1/4/09

2,000

1,500
12,500

Unearned Rent Revenue (received in advance)

Particulars
RM
Date
Particulars
Rent revenue

RM
2,000

1/4/09

RM

Balance b/d

2,000

(By this date, from current liabilities become revenue)

Accrued Rent Revenue
31/3/10
Rent revenue
1,500
31/3/10
Balance c/d

1,500

1/4/10

Balance b/d

1,500

Date
1/5/09
31/12/09

Particulars
Bank
Bank

Motor Expense
RM
Date
1,500
1/4/09
750
31/3/10
31/3/10

Particulars
Accrued motor
expense
Prepaid motor
expense
Income statement

2,250

Date

Particulars

1/4/09

Motor expense

RM
350
500
1,400
2,250

Accrued Motor Expense

RM
Date

Particulars

RM

Balance b/d

350

(By this date, from current liabilities become expense for the year)
Prepaid Motor Expense
Date
Particulars
RM
Date
Particulars

RM

350

31/3/10

Motor expense

500

1/4/10

Balance b/d

500

1/4/09

31/3/10

Balance c/d

Income Statement for the year ended 31 March 2010

500

RM
Revenues
Rent revenue

12,500

Expenses
Insurance expense

4,500

Motor expense

1,400
Balance Sheet as at 31 March 2010

Current Assets

RM

Prepaid motor expenses

500

Accrued rent revenue

3.

1,500
PTL Trading
Income Statement for the year ended 31 March 2006
RM
RM

Sales
Less: Return inwards
Opening inventory
Purchases
Less: Return outwards
Less: Closing inventory
Cost of goods sold
Gross profit
Other revenue:
Discount received
Expenses:
Wages and salaries
Office expenses
Rent and insurance
Discount allowed
Carriage outwards

5,100
22,860
570

23,430
28,530
4,250
23,140
17,070
930
9,190
480
1,640
1,440
2,180

Balance Sheet as at 31 March 2006

RM
RM
Non-current Assets:
Fixtures and fittings
Delivery van
Current Assets:
Inventory
Accounts receivable
Cash
Prepaid rent and insurance

Owners Equity:
Capital at 1 April 2005
Add: Net profit
Less: Drawings
Current Liabilities:

RM
41,000
790
40,210

(8,980 +210)

(450+30)
(1,790-150)

14,930
3,070

RM
1,210
2,000

4,250
11,900
140
150

16,440
19,650
8,170
3,070
2,850
8,390

Bank overdraft
Accounts payable
Accrued wages and salaries
Accrued office expenses

4.

a.

b.

c.

4,300
6,720
210
30

Prepaid rent = 1,200

Dr
Prepaid rent
Cr
Rent expense

1,200

Prepaid insurance = 9,600/12 x 3 = 2,400

Dr
Prepaid insurance
Cr
Insurance expense

2,400

11,260
19,650

1,200

Accrued wages = 800

Dr
Wages
Cr
Accrued wages

2,400
800
800

5.
Date
1/10/09
30/9/10

Advertising Expense
RM
Date
Particulars
5,625
30/9/10
Income statement

Particulars
Prepaid
advertising
Bank
Accrued
advertising

6,000
2,500
14,125

Date
1/10/09

Date

Bal b/d

5,625

30/9/10

Bal c/d

Date
30/9/10

Particulars
Income
statement
Unearned
revenue

14,125

Prepaid Advertising
RM
Date

Particulars

Particulars

RM
14,125

1/10/09

Accrued Advertising
RM
Date
2,500

30/9/10

Rent Revenue
RM
Date
14,400
1/10/09
rent

1,200

30/9/10

Particulars

RM

Advertising exp.

Particulars

5,625

RM

Advertising exp.

2,500

Particulars
Unearned
revenue
Bank

RM
1,200

rent

15,600

14,400
15,600

Unearned Rent Revenue

Particulars
RM
Date

Particulars

RM

1/10/09

Rent revenue

1,200

1/10/09

Balance b/d

1,200

30/9/10

Balance c/d

1,200

30/9/10

Rent revenue

1,200

Date

2,400

Income Statement for the year ended 30 Sept 2010

2,400

RM
Revenues
Rent revenue

14,400

Expenses
Advertising expense

14,125
Balance Sheet as at 30 Sept 2010

Current Liabilities
Unearned rent revenue

1,200

Accrued advertising expense

2,500

6.
Date
31/7/10

Date

Particulars
Bank
Accrued salaries
and wages

Particulars

31/7/10

Bal c/d

Date
31/7/10

Particulars
Bank

Salaries and Wages

RM
Date
Particulars
6,000
31/7/10
Income statement
2,400

RM
8,400

8,400

8,400

Accrued Salaries and Wages

RM
Date
Particulars
2,400

31/7/10

Stationery
RM
Date
400
31/7/10

Salaries and wages

Particulars
Income statement
Prepaid stationery

400

Date

Particulars

RM

31/7/10

Stationery

100

Date
31/7/10

Particulars
Income
statement
Unearned
commission
revenue

Prepaid Stationery
Date
Particulars
31/7/10

Bal c/d

Commission Revenue
RM
Date
Particulars
3,000
31/7/10
Bank

31/7/10

Date

RM
300
100
400

RM
100

RM
4,000

4,000

Unearned Commission Revenue

Particulars
RM
Date
Particulars
Balance c/d

2,400

1,000

4,000

Date

RM

1,000

31/7/10

Unearned Rent Revenue

Particulars
RM
Date

RM

Commission
revenue

1,000

Particulars

RM

31/7/10

Balance c/d

Date
31/7/10

Particulars
Income
statement
Unearned
commission
revenue

500

31/7/10

Rent Revenue
RM
Date
8,000
31/7/10

Rent revenue

500

Particulars
Bank

RM
8,500

500

8,500

Date
31/7/10

8,500

Interest Revenue
RM
Date
3,800
31/7/10

Particulars
Income
statement

Particulars
Bank
Accrued
revenue

RM
3,000
rent

3,800

Date

Particulars

31/7/10

Interest rev.

3,800

Accrued Rent Revenue

RM
Date
Particulars
800

800

31/7/10

Balance c/d

RM
800

Income Statement for the year ended 31 July 2010

RM
Revenues
Commission revenue

3,000

Rent revenue

8,000

Interest revenue

3,800

Expenses
Salaries and wages

8,400

Stationery

300
Balance Sheet as at 31 July 2010

Current Assets
Prepaid stationary

100

Accrued interest revenue

800

Current Liabilities
Unearned commission revenue
Unearned rent revenue
Accrued salaries and wages

1,000
500
2,400