University Business Accounting Assignment: Comprehensive Solution

This document presents a complete solution to a business accounting assignment. The solution begins with a bank reconciliation statement for Selena Enterprise, detailing adjustments and arriving at a cash book balance. It then provides a trial balance for ABC Sdn bhd, followed by the creation of a suspense account and the correction of errors. The assignment continues with the preparation of journal entries to rectify discrepancies. A comprehensive income statement for ABC Sdn bhd is presented, calculating net profit. Finally, a balance sheet for ABC Sdn bhd is created, outlining assets, liabilities, and equity. The document concludes with a bibliography of relevant accounting sources.

Running head: BUSINESS ACCOUNTING
BUSINESS ACCOUNTING
Name of the Student
Name of the University
Author’s Note:

1BUSINESS ACCOUNTING
Answer to Qs.1
Answer to Qs.2
Selena Enterprise
Bank Reconciliation Statement
As on 31st December, 2019
Particulars Amount(RM )
Amount
(RM)
Bank Overdraft as per Bank Statement (debit)

2BUSINESS ACCOUNTING
17,000.00
Add:
Check issued not encashed 2,200.00
Interest charged by bank recorded twice in the cash book 500.00
Cheque deposited as per the bank statement not in cash book 3,400.00
Uncredited cheque due to Outstation 3,900.00 10,000.00
Less:
Interest unrecorded paid by the bank as per standing instruction 1,200.00
Dividends on shares collected by banker 2,300.00
Credit sale of bank column in cash book cast short 1,000.00 (3,300.00)
Balance as per cash cash book (credit) 23,700.00
Answer to Qs.3
ABC Sdn bhd
Trial balance
as at 31st December, 2019
Debit Credit
Particulars Amount in RM Amount in RM
Land 500,000

3BUSINESS ACCOUNTING
Building 200,000
Motor vehicles 120,000
Plant and machinery 70,000
Retained profit 312,150
8%debenture 150,000
Ordinary shares 200,000
Accumulated depreciation on building 60,000
Accumulated depreciation on Motor vehicles 69,250
depreciation on Plant and machinery 40,000
Sales return 3,600
Purchase return 4,100
Sales 700,000
Purchase 400,000
Sales discount 5,000
Purchase discount 3,500
Opening inventory 52,000
7% Preference shares 50,000
Provision for bad debts 2,000

4BUSINESS ACCOUNTING
Trade receivables 26,700
Trade payables 43,200
Administrative expenses 18,000
Staff training cost 4,000
Bad debts 12,500
Motor expense 27,000
Rental 90,000
Bank overdraft 15,400
Wages and salaries 115,000
Debenture interest 6,000
Suspense 200
1,649,800 1,649,800
-
Answer to Qs.4
a) Suspense account
Dr. Cr.
Date Particulars Amount in RM Date Particulars Amount in RM
To Discount received 2000 Accounts/receivable 3800
To Discount allowed 2000

5BUSINESS ACCOUNTING
By balance b/d 200
4000 4000
b) ABC Sdn bhd
Trial balance
Debit Credit
Particulars Amount in RM Amount in RM
Land 500,000
Building 200,000
Motor vehicles 119,000
Plant and machinery 70,000
Retained profit 312,150
8%debenture 150,000
Ordinary shares 200,000
Accumulated depreciation on building 60,000
Accumulated depreciation on Motor vehicles 69,250
Accumulated depreciation on Plant and machinery 40,000
Sales return 3,600
Purchase return 4,100
Sales 700,000
Purchase 400,000
Cash
Stationery 500
Sales discount

6BUSINESS ACCOUNTING
3,000
Purchase discount 5,500
Opening inventory 52,000
7% Preference shares 50,000
Provision for bad debts 2,000
Trade receivables 30,500
Trade payables 43,200
Administrative expenses 18,000
Staff training cost 4,000
Bad debts 13,500
Motor expense 27,000
Rental 90,000
Bank overdraft 15,900
Wages and salaries 115,000
Debenture interest 6,000
1,652,100 1,652,100
-
Workings:
Journal Entries
Debit Credit
Sl.no. Particulars Amount in RM Amount in RM
1 Stationery a/c 500
To Cash 500
2 Suspense A/c 4000

7BUSINESS ACCOUNTING
To Discount received 2000
To Discount allowed 2000
3 Accounts receivable a/c 3800
To Suspense A/c 3800
4 Motor vehicles Expense a/c 1000
To motor vehicle 1000
Answer to Qs.5
Comprehensive income Statement of ABC Sdn bhd
Particulars Amount in RM
Sales 700000
Sales Return and Discount (6,600)
Total Revenue 693,400
Expenses:
Cost of goods sold 395,400
Stationery expense 500
Administrative expenses 18,000
Staff training expense 4,000
Bad debt expense 13,500
Motor vehicle expense 27,000
Rent expense 90,000
Wages and salaries 115,000
Interest expense 6,000
Total Expenses 669,400
Net Profit for the Period 24,000
Answer to Qs.6
ABC Sdn bhd
Balance Sheet
as on 31st December, 2019
Particulars Amount in RM Amount in RM
Current Assets:

8BUSINESS ACCOUNTING
Inventory 47000
Trade receivables 30,500
Provision for bad debts (2,000)
Total Current Assets 75,500
Non-Current Assets:
Land 500,000
Building 200,000
Accumulated depreciation on building (60,000)
Motor vehicles 119,000
Accumulated depreciation on Motor vehicles (69,250)
Plant and machinery 70,000
Accumulated depreciation on Plant and
machinery (40,000)
Total Non-Current Assets 719,750
TOTAL ASSETS 795,250
Current Liabilities:
Bank overdraft 15,900
Trade payables 43,200
Total Current Liabilities 59,100
Non-Current Liabilities:
8%debenture 150000
Total Non-Current Liabilities 150000
TOTAL LIABILITIES 209,100
NET ASSETS 586,150
Equity Capital:
Share Capital 250,000
Retained Earnings 336,150
TOTAL EQUITY 586,150

9BUSINESS ACCOUNTING
Bibliography
Duan, Y., & Yeh, C. H. (2018). An Intelligent System Based Approach to Accounting Choices
Evaluation and Selection. In PACIS (p. 165).
Ionescu, L., Toma, M., & Founanou, M. (2018). Applied Analysis of the Impact of Inventory
Valuation Methods on the Financial Situation and Financial Performance. Valahian
Journal of Economic Studies, 9(1), 67-76.
ODO, J. O. (2018). NATURE OF ACCOUNTING, BANK RECONCILIATION STATEMENT
(FUNDAMENTALS OF ACCOUNTING).
Simeon, E. D., & Ohaka, J. (2018). Implication of Choice of Inventory Valuation Methods on
Profit, Tax, and Closing Inventory. Account and Financial Management Journal, 3(7).