Question 1The following information is extracted from the book of Tropicana Marketing on 30 June 2010. RM

Credit balances in purchases ledgerDebit balances in purchases ledgerCredit balances in sales ledgerDebit balances in sales ledger

The following information relates to the year ended 30 June 2011:

Purchases invoices receivedPurchases for cashDiscounts receivedSales invoices issuedReceipts from cash salesBad debts written offBad debts prior to 1 July 2010 now receivedCash paid to creditorsPurchases returns and allowancesDiscount allowedSales returnsCash received from debtorsLegal expenses charged to debtorsCredit in purchases ledger transferred to sales ledgerIncrease in allowance for bad and doubtful debtsCredit balances in sales ledger 30 June 2011Debit balances in purchases ledger 30 June 201124,44845076044,000

248,8004,8003,600329,60036,0004,400120246,4003,2005,6002,800324,6004684489002,440420

Required:From the information given, prepare Sales and Purchases Ledger Control Account using the appropriate balances for the year ended 30 June 2011.

Question 2Upon completion of Trial Balance for Crystal Clear Ent., it was noted there was difference and suspense account was created to achieve the balance.Examination of the books then revealed that:1. Discount allowed of RM76 had been credited to the discount received account2. Sale of RM 151 to Antara Trading had been posted correctly to debtor but entered in sales day book as RM1153. A cheque received from ABCO Ltd been entered correctly in the cash book of RM766, however, it had been posted to ABCO Ltd ledger as RM7604. The purchase of new machinery for RM1,200 had been posted to the stock account. Depreciation is ignored for the year in which machinery is purchase5. A sale of RM265 to Sunflower Trading had not been posted to his account6. A petty cash balance of RM100 was omitted from the Trial Balance7. Bank interest charges of RM720 were correctly entered in the cash book. However, the other side of the entry had been omitted

Required:i) Prepare journal entries to correct the above errors (narrations are not required)ii) Prepare Suspense Accountiii) Show effect of the above corrections on profit. Current profit from the unadjusted trial balance is RM16,217

Question 3Carven Tiles & Ceramics extracted the following balances from their accounting records as at 31 December 2009:Inventory as at 1 January 2009Raw materialsWork-in-progressFinished goodsIndirect factory expensesSalaries and wagesPurchases of raw materialsProvision of depreciation plant and machinery at 31 December 2008Returns inwardsPurchases of finished goodsAllowance for doubtful debts at 31 December 2008Carriage inward for raw materialsManufacturing wagesLight and heatDirect factory expensesInsuranceCarriage outwardsFactory powerRent and ratesBad debtsPlant and machinery at costSales RM 75,00021,00028,6004,80060,000520,00060,0001,20018,8009,6004,200360,00016,0003,9006,8003,00018,60052,0002,400200,0001,318,300

Additional information available at 31 December 2009 was as follows:1. Rent and rates, light and heat, and insurance are to be apportioned between factory and office as and respectively2. Salaries and wages are to be split factory 1/3 and office 2/33. Wages accrued due for manufacturing RM8,0004. Rates prepaid of RM2,0005. Depreciate plant and machinery at rate of 20% p.a. on cost6. Value of inventory at 31 December 2009:Raw materialsRM68,000Work-in-progressRM25,000Finished goodsRM30,800

Required:Prepare manufacturing and income statements for the year ended 31 December 2009Question 4

Jenny, Thien and Kok Nam are in partnership, sharing profits and losses in the ratio 2:1:1 respectively. The statement of financial position of the firm as at 31 March 2012 was as follows:

Jenny, Thien and Kok NamStatement of Financial Position as at 31 March 2012

Non-Current AssetsFreehold premisesPlant and equipment DepreciationMotor Vehicles DepreciationFixtures and fittings Depreciation

Current AssetsInventoryTrade ReceivablesCash at Bank

Current LiabilitiesTrade Payables

Long-Term LiabilitiesLoan from Jenny

Financed by:Capital Jenny Thien Kok Nam

20,000(8,000)10,000(4,000)5,000(1,000)

12,0006,500 4,100

RM100,000

12,000

6,000

4,000

122,000

2,600

144,600 (4,600)

140,000

(20,000)

120,000

60,00035,000 25,000

120,000

On 1 April 2012, it was agreed to dissolve the partnership. As Jenny agreed to take over the following assets at book value:Freehold premisesRM40, 000Motor vehicleRM3, 500Fixtures and FittingsRM3, 500

The partners paid RM4, 500 in full settlement of the amount owed to the trade payables. The trade receivables realized RM6, 000 and realization expenses of RM1, 200 were paid. The remaining assets not taken over by Jenny were sold for the following amounts:

Freehold premisesRM70, 000Plant and equipmentRM10, 000Motor vehiclesRM2, 000InventoryRM9, 000

Required:

You are required to show the relevant accounts and final distribution between partners.