Principles of Accounting - Individual Assignment Christopher Leong

Student Name: Chew Tuan Koon Lecturer: Mr. Student NRIC:

Question 1: In which specific sections of the final accounts would the following items appear? Answer 1:
Question In Profit & Loss Statement Cost of Goods Sold Cost of Goods Sold Answer In Balance Sheet Current Assets Current Liabilities Current Liabilities Current Assets Current Assets Current Assets Current Liabilities Current Assets Current Liabilities

Opening Stock Closing Stock Trade Creditors Short-term loan Trade Debtors Cash in Hand Prepaid expenses Accrued expenses Accrued revenue Unearned revenue

Question 2: Journalise the following transactions for the month of January. Narration is not required. 01. 03. 06. 08. 09. 15. 17. 24. 29. 30. Started a business with $8,000 in the bank, and $2,000 in cash. Purchased goods on credit from Kingston $760, and Matthew $270. Made cash sales amounting to $870. Sold goods on credit to Hilary $350; Lois $420; Jackson $720. Purchased goods for cash $460. Bought furniture n credit from Bright Wood Pte Ltd $500. Issues a cheque to Matthew in full settlement of the account. Received a cheque from Jackson $580. Paid Wages totalling $1560. Paid Bright Wood Pte Ltd $500 by cheque.

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Principles of Accounting - Individual Assignment Christopher Leong

Student Name: Chew Tuan Koon Lecturer: Mr. Student NRIC:

Answer 2:
D te a 21 01 Jn a 1 D s rip n e c tio Bn ak Cs ah Cp l a ita 3 P rc a e u hs s K g to in s n M tth w a e 6 Cs ah S le a s 8 H ry illa L is o Jcs n ako S le a s 9 P rc a e u hs s Cs ah 1 5 F rn re u itu s B h Wo P rig t o d L 1 7 M tth w a e Bn ak 2 4 Bn ak Jcsn ako 2 9 S la a ry Bn ak 3 0 B h Wo P rig t o d L Bn ak 50 0 50 0 1 6 ,5 0 1 6 ,5 0 50 8 50 8 20 7 20 7 50 0 50 0 40 6 40 6 30 5 40 2 70 2 1 9 ,4 0 80 7 80 7 1 3 ,0 0 70 6 20 7 Db e it 8 0 ,0 0 2 0 ,0 0 1 ,0 0 0 0 C d re it

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Principles of Accounting - Individual Assignment Christopher Leong

Student Name: Chew Tuan Koon Lecturer: Mr. Student NRIC:

Question 3: When a Trial Balance balances, it means the accounts are free of errors. (a) Explain why you agree, or disagree, with the above statement. A company's accounts shuld always aim to present a 'true and fair view' of its business operations. (b) With the use of relevant accounting principles, explain how they guide accountants towards achieving the above aim. Question 4: The following Trial Balance of Skaldic Limited is for the year ended 30 June 2010. Machinery at cost Machinery accummulated depreciation, at 01 July 2009 Furniture at cost Furniture accummulated depreciation, at 01 July 2009 Land at cost Cash at Bank Retained earnings, at 01 July 2009 Trade Debtors Trade Creditors 10% Loan (2015) Ordinary shares of $1 each Loan interest paid Sales Revenue Returns inwards Advertising expenses Office Salaries Insurance Utilities expenses Inventory, at 01 July 2009 Rental expenses Provision for Doubtful Debts, at 01 July 2009 Purchases Returns Outwards Dr ($) 600,000 150,000 48,000 488,000 32,000 184,000 260,000 100,000 50,000 460,000 5,000 1,540,000 10,000 20,000 138,000 14,000 70,000 120,000 84,000 8,000 693,000 6,000 2,684,000 2,684,000 Cr ($) 288,000

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Principles of Accounting - Individual Assignment Christopher Leong

Student Name: Chew Tuan Koon Lecturer: Mr. Student NRIC:

Additional information as at 30 June 2010: i. The closing inventory was valued at $90,000. ii. Utilities of $9000 were outstanding, and unrecorded. iii. Insurance expenses included $2,000 for July and August 2010. iv. The provision for doubtful debts is to beset at 4% of trade debtors. v. Machinery is to be depreciated at 25% per annum using the reducing balance method. vi. Furniture is depreciated at 15% per annum on the original cost. vii. Corporate tax is calculated at 15% for the year. Required: (i) Prepare a Trading and Profit & Loss Statement for the year ended 30 June 2010. (ii) Prepare a Statement of Financial Positio as at 30 June 2010.

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