Acc tutorial 9
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The document provides the trial balance and additional financial information for On-vest Software Enterprise as of January 31, 2009. It asks to prepare an income statement and balance sheet based on the information given. The income statement will show the company's revenues, expenses and net income for the year. The balance sheet will report the company's assets, liabilities and equity as of the specified date.
Acc tutorial 9
- 1. Tutorial 9: Final Accounts of the Sole Trader Question 1 Mr. Tan works as an accounting clerk in On-vest Software Enterprise. The principal activities of the company are selling software program and providing maintenance services to the clients. Mr. Tan was asked to prepare a financial statement for the year ended 31 January 2009. He extracted the following ledger balances: ON-VEST SOFTWARE ENTERPRISE. Trial Balance as at 31 January 2009 Debit (RM) Credit (RM) Cash 8,000 Bank 967,000 Trade debtors 4,500 Supplies 200 Computer equipment 350,000 Furniture 20,000 Land 40,000 Accumulated depreciation: Computer equipment 70,000 Furniture 2,000 Trade creditors 500 Salaries payable 7,000 Unearned revenue 12,650 Provision for doubtful debt 550 Paid up capital 500,000 Sales and purchase 195,000 422,000 Service revenue 8,900 Interest expenses 90,000 Salaries expenses 17,550 Advertising expenses 25,000 Miscellaneous expenses 4,500 Bad debt expenses 900 Prepaid rent 6,000 Inventory (1 February 2008) 295,000 Mortgage loan (12% p.a.) 1,000,000 Accrued electricity bill 1,250 Carried inwards 460 Discount received and discount allowed 1,000 260 2,025,110 2,025,110
- 2. Additional information: (i) A stock take values the closing stock at RM166,000. (ii) Received RM 2,500 from Spidernet Enterprise for the purpose of providing software maintenance service. However, the service has yet to be provided. (iii) Prepaid rent of RM300 had expired. (iv) Depreciation for the fixed assets are based on the following data: Computer Equipment 20% on net book value Furniture 10% on cost (v) 10% of the trade creditors have been paid by cash. (vi) One of the trade debtors, Supermario Enterprise, which owed RM2,000 has been recognized as bankrupt. (vii) A 25% doubtful debt provision is necessary on the year-end trade debtor’s balance. (viii) The remainder of a full year’s interest on the mortgage loan is still outstanding. . Required: (a) Draw up an Income Statement for On-vest Software Enterprise for the year ended 31 January 2009. (b) Prepare a Balance Sheet for On-vest Software Enterprise. as at 31 January 2009.