please write in a table 6. Following is the trial balance of Pure Gald Enterpris
ID: 2413380 • Letter: P
Question
please write in a table
6. Following is the trial balance of Pure Gald Enterprise as at 30 June 20x7 Debit Credit RM Sales Purchases Sales returns Purchase returns Beginning inventory Provision for bad debts Wages and salaries Insurance Expense Telephone charges Equipment at cost Van Debtors and creditors Bad debts Capital Bank Drawings 400,000 350,000 5,000 6,200 100,000 800 30,00g 6,000 1,000 40,000 30,000 9,800 200 7,000 179,000 3,000 18,000 593,000 593,000 Additional Information: 1. Inventory as at 30 June 20x7 was RM120, 000. 2. Accrued wages RM5, 000. 3. Insurance prepaid RM500. 4. The provision for bad debts to be increased to 10% of debtors. 5. Telephone bills outstanding RM220. You are required to: a. Prepare a trading and profit and toss account for the year ended 30 June 20X7 b. Prepare a balance sheet, as at 30 June 20X7.Explanation / Answer
(a).
Trading and Profit & Loss Account
To. Beginning inventory
100000
By. Sales 400000
To. Purchases 350000
Less: Sales return 5000
395000
Less: Purchases return 6200
343800
By. Ending inventory
120000
To. Wages & Salaries (30000 + 5000)
35000
To Gross profit
36200
515000
515000
To. Insurance expense (6000 - 500)
5500
By. Gross profit
36200
To. Telephone charges (1000 + 220)
1220
To. Bad debts (200 + 180)
380
To. Net profit
29100
36200
36200
(b).
Balance Sheet
Liabilities
Assets
Creditors
7000
Equipment at cost
40000
Accrued wages
5000
Van
30000
Outstanding telephone expenses
220
Debtors 9800
Less: Provision 980
8820
Capital 179000
Bank
3000
Less: Drawings 18000
Ending inventory
120000
Add: Net profit 29100
190100
Prepaid insurance
500
202320
202320
Trading and Profit & Loss Account
To. Beginning inventory
100000
By. Sales 400000
To. Purchases 350000
Less: Sales return 5000
395000
Less: Purchases return 6200
343800
By. Ending inventory
120000
To. Wages & Salaries (30000 + 5000)
35000
To Gross profit
36200
515000
515000
To. Insurance expense (6000 - 500)
5500
By. Gross profit
36200
To. Telephone charges (1000 + 220)
1220
To. Bad debts (200 + 180)
380
To. Net profit
29100
36200
36200
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