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QUESTION 2 The Balance Sheet of Syarikat Siti Ayu at at 31 December 2019 shows...

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Accounting

QUESTION 2

The Balance Sheet of Syarikat Siti Ayu at at 31 December 2019 shows as below:

DESCRIPTION RM
Cash 11,270
Debtor 20,900
Provision for bad debts 400
Inventory 52,318
Equipment 25,400
Provision for depreciation 7,620
Creditor 18,076
Loans 19,000
Capital 59,714
Drawings 18,216
Sales 108,416
Cost of Sales 58,900
Emoluments 18,920
Interest 1,852
Bad debts 650
Rent 4,800
426,452

Additional Info:

1. A physical inspection on 31 December 2019 found that the inventory value was RM51,987.

2. Depreciation of equipment is at a rate of 15% per year using the straight line method.

3. Sales include an amount of RM4,520 that has been received from the customer but the goods have not been delivered.

4. Emoluments accrued amounting to RM422.

5. Bad debt written off is RM650 but wrongly debited to bad debt expense. Bad debt provision is at a rate of 4% per annum.

Required:

1. Adjustment Journal based on additional information.

2. Trial balance on December 31, 2019 after the adjustment journal.

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