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    Poa T - 9

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    SHEVENA A/P VIJIAN
    The document provides examples and instructions for preparing year-end adjustments for various accounts, including: - Prepaid expenses that need to be allocated over multiple periods - Income and expenses that relate to one period but are received/paid in another period - Depreciation adjustments It asks the student to prepare adjusting journal entries and adjusted financial statements for accounts such as advertising expenses, rental income, insurance, interest income, and rent revenue based on sample transactions and year-end balances provided. The goal is to practice accrual accounting and properly cutting off revenues and expenses at the end of an accounting period.

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    Poa T - 9

    Uploaded by

    SHEVENA A/P VIJIAN
    80 views3 pages
    The document provides examples and instructions for preparing year-end adjustments for various accounts, including: - Prepaid expenses that need to be allocated over multiple periods - Income and expenses that relate to one period but are received/paid in another period - Depreciation adjustments It asks the student to prepare adjusting journal entries and adjusted financial statements for accounts such as advertising expenses, rental income, insurance, interest income, and rent revenue based on sample transactions and year-end balances provided. The goal is to practice accrual accounting and properly cutting off revenues and expenses at the end of an accounting period.

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    POA T - 9

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    The document provides examples and instructions for preparing year-end adjustments for various accounts, including: - Prepaid expenses that need to be allocated over multiple periods - Income and expenses that relate to one period but are received/paid in another period - Depreciation adjustments It asks the student to prepare adjusting journal entries and adjusted financial statements for accounts such as advertising expenses, rental income, insurance, interest income, and rent revenue based on sample transactions and year-end balances provided. The goal is to practice accrual accounting and properly cutting off revenues and expenses at the end of an accounting period.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    80 views3 pages

    Poa T - 9

    Uploaded by

    SHEVENA A/P VIJIAN
    The document provides examples and instructions for preparing year-end adjustments for various accounts, including: - Prepaid expenses that need to be allocated over multiple periods - Income and expenses that relate to one period but are received/paid in another period - Depreciation adjustments It asks the student to prepare adjusting journal entries and adjusted financial statements for accounts such as advertising expenses, rental income, insurance, interest income, and rent revenue based on sample transactions and year-end balances provided. The goal is to practice accrual accounting and properly cutting off revenues and expenses at the end of an accounting period.

    Copyright:

    © All Rights Reserved
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    of 3

    Tutorial 9 Year End Adjustments 1 LTJ 2022

    Tutorial 9 – Year End Adjustments Required:


    Prepare and balance off the following accounts for the year ended 31 May
    Section A: 2022:
    (a) Prepaid advertising expenses account
    1. Explain the following items, giving an example in each case. How are (b) Advertising expenses account
    they treated in the accounts? (c) Accrued advertising account
     Accrued income (d) Accrued rental received account
     Income in advance (e) Rental received account
     Accrued expense (f) Accrued electricity account
     Prepaid expense (g) Electricity account
    (h) Prepaid electricity account
    Question 2

    The following is an extract of the Statement of Financial Position of Gaya Question 3:


    Sdn Bhd:
    The Trial Balance for Ravi as at 31 March is as follows:
    Statement of Financial Position (extract) as at 31 May 2021 DR CR
    RM RM RM
    Current assets Inventory 1 April (b/d) 8,200
    Prepaid advertising expenses 1,280 Purchases and Sales 26,000 40,900
    Accrued rental received 2,000 Rent 4,400
    Insurance 1,600
    Current liability Salary 9,990
    Unpaid electricity expenses 120 Motor vehicle at cost 9,000
    Commission received 3,650
    Receipts and payments account (extract) for the year ended 31 May 2022 Rental received 6,000
    Receipts RM Payments RM Trade receivables and payables 1,160 2,100
    Rent received 10,000 Advertising 600 Bank 1,500
    Electricity 1,000 Accumulated depreciation:motor vehicle 1,200
    Additional information: Capital at 1 April (b/d) 19,700
    1. Advertising in arrears as at 31 May 2022 amounted to RM200. Drawings 11,700
    2. Electricity bill of RM150 has been paid in advance as at 31 May 2022. 73,550 73,550
    3. According to the rental agreement, the monthly rental is RM1,000 per At 31 March there was:
    month. As at 31 May 2022, 4 months’ rental has yet to be received. i. Inventory valued at 31 March at cost prices RM9,100
    ii. Rent of RM400 not yet paid
    iii. Insurance inclusive RM300 paid in advance
    iv. Commission of RM350 not yet received for the month of March
    Tutorial 9 Year End Adjustments 2 LTJ 2022

    v. 15 months rental was received which inclusive 3 months deposit Question 2:


    vi. The motor vehicle is to be depreciated at 20% at cost which amounting
    to RM1,800. Insurance for a New Day Enterprise is at RM24,000 per annum starting
    from 1 March , to be paid in advance at the beginning of each quarter year.
    Required: The financial year for Daya ended 31 December each year. The detail of
    (a) Ledger accounts for year ended 31 March payment as below:
    i) Rent account
    ii) Insurance account Amount RM6,000 RM6,000 RM6,000 RM6,000
    iii) Commission received account Due 1 March 1 June 1 September 1 December
    iv) Rental received account Paid 1 March 3 July 28 August 8 December
    (b) Prepare extracts of the Statement of Profit or Loss for the year ended
    31 March Required:
    (c) Statement of Financial Position as at that date. (a) Prepare an Insurance Account for the above transaction. Show the
    posting to Prepaid Insurance Account.
    (b) Prepare journal entries for the above adjustment and posting to the
    Section B: Extra exercise questions (for students’ own practice) Statement of Profit or Loss.

    Question 1:
    Question 3:
    Forward Looking Agency paid commission to its business partner at the end
    of every 3 months. The commission payment for the year ended 31 Mayday Enterprise opened a fixed deposit account with Sime Bank Bhd on
    December was as follows: 1 March. The initial deposit was RM60,000 at an interest of 5% per annum.
    The term of the deposit was 1 year, and the interest received to be credited
    Amount RM7,000 RM8,000 RM7,500 RM9,000 to the company’s current account at the end of every six months. Assume
    Due on 31 March 30 June 30 September 31 December that Maju Enterprise’s financial year ended 31 December each year.
    Paid on 31 March 3 July 5 October 7 January
    (Accrued)
    Required:
    Required: (a) Prepare an Interest Received Account for the above transaction. Show
    (a) Prepare a Commission Account for the above transaction. Show the the posting to Accrued Interest Received Account / Interest Receivable
    posting to Accrued Commission Account. Account.
    (b) Prepare journal entries for the above adjustment and posting to the (b) Prepare journal entries for the above adjustment and posting to
    Statement of Profit or Loss. Statement of Profit or Loss.
    Tutorial 9 Year End Adjustments 3 LTJ 2022

    Question 4:

    Wata Trading let part of its warehouse to another company on 1 May. The
    annual rental of RM24,000 to be paid in advance at the beginning of each
    quarter year. Assume that Jaya Trading’s financial year ended 31 December
    each year.

    Required:
    (a) Prepare a Rent Received Account for the above transaction. Show the
    posting to Rent Received in Advance Account.
    (b) Prepare journal entries for the above adjustment and posting to the
    Statement of Profit or Loss.

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