Tutorial 7

Bachelor of Commerce (Hons) Accounting

Bachelor of Business Administration (Hons) Banking & Finance

Bachelor of Finance (Hons)

Year 1 Semester 1

Faculty of Business and Finance

Department of Commerce & Accountancy

UBAF1013 Financial Accounting Framework I

Tutorial 7 - Questions

|(1) | | |

From the following trial balance of B. Morse drawn-up on conclusion of his first year in

business, draw up an income statement for the year ending 31 December 2013 and a

statement of financial position as at 31 December 2013.

Trial balance as at 31 December 2013

Dr

Cr

General expenses

305

Business rates

2,400

Motor expenses

910

Salaries

39,560

Insurance

1,240

Purchases

121,040

Sales

235,812

Car

4,300

Account Payable

11,200

Accout Receivable

21,080

Premises

53,000

Cash at bank

2,715

Cash in hand

325

Capital

23,263

Drawings

23,400

270,275

270,275

Inventory at 31 December 2013 was rm14, 486.

(Woods, F., 2012, p.89)

| | | | | | | | | | | | | | | | | | | | (2)

Chew Peng opened a bicycle shop on 1 July 2009 by contributing $20,000 cash into the business bank account & a motor vehicle worth $6,000.

You are required to:

a) Journalize the following transactions which took place during the month.

b) Prepare Income Statement for the month ended 31 July 2009.

c) Transfer the net profit or loss to the Capital...