Tutorial 4 Posting to Ledger & Trial Balance 1 LTJ 2022

Tutorial 4 – Posting to ledger and trial balance

Section A

Question 1

Transfer all the balances in Trial Balance below to Statement of Profit or Loss (SPL) and Statement of Financial Position (SFP).
MU Trading
Trial Balance as at 31 May 2022
Debit Credit
RM RM
Inventories @ 1 June 2021 21,950
Office equipment 20,000
Motor vehicles 60,000
Trade receivables 26,000
Bank 18,000
Trade payables 18,500
Drawings 14,000
Loan 50,000
Sales 475,000
Purchases 400,000
Carriage outward 5,600
Discount received 3,800
Discount allowed 4,000
Salaries 35,000
Capital 57,250
604,550 604,550

Additional information:
Closing inventory as at 31 May 2022 amounted to RM10,950.

Required:
(a) Prepare Statement of Profit or Loss for the month ended 31 May 2022.

Statement of Profit or Loss for the month ended 31 May 2022

RM RM RM
Sales 475,000
 Tutorial 4 Posting to Ledger & Trial Balance 2 LTJ 2022

Less: Cost of Goods Sold

Opening Inventories 21,950
Purchases 400,000
421,950
(-) Closing Inventories (10,950) (411,000)
Gross Profit 64,000

Add: Income
Discount Received 3,800
67,800
Less: Expenses
Carriage Outwards 5,600
Discount Allowed 4,000
Salaries 35,000 (44,600)
Net Profit 23,200

(b) Prepare the Statement of Financial Position as at 31 May 2022.

RM RM RM
Non-Current Assets
Office equipment 20,000
Motor vehicles 60,000
80,000
Current Assets
Closing Inventories 10,950
Trade receivables 26,000
Bank 18,000 54,950
134,950
Equity
Opening Inventories 57,250
(+) Profit 23,200
80,450
 Tutorial 4 Posting to Ledger & Trial Balance 3 LTJ 2022

(-) Drawings (14,000)

Closing Capital 66,450

Non-Current Liabilities
Loan 50,000
Trade Payables 18,500 68,500
134,950

Question 2

The following balances were extracted from the book of Alexis Trading as at 31 Dec:

RM RM
Cash in hand 29,000 Office Equipment 31,500
Cash at bank 38,000 Trade receivable 45,700
Motor Vehicles 65,000 Inventory 32,650
Sales 97,300 Capital 100,000
Trade Payable 60,050 Bank loan 75,000
Purchases 82,000 Salaries and Wages 8,500

Required:
Prepare a proper Trial Balance for Alexis Trading as at 31 Dec.

RM RM
Cash in hand 29,000
Cash at Bank 38,000
Motor Vehicles 65,000
Sales 97,300
Trade Payables 60,050
Purhases 82,000
Office Equipment 31,500
Trade Receivbales 45,700
Inventory 32,650
 Tutorial 4 Posting to Ledger & Trial Balance 4 LTJ 2022

Capital 100,000
Bank Loan 75,000
Salaries and Wages 8,500
332,350 332,350

Section B: Extra exercise questions (for students’ own practice)

Question 1

Bob Stanley is a sole proprietor who keeps records of his cash and bank transactions. This transaction for the month of May:

May
1 Cash in hand RM400, cash at bank RM6,000.
4 Stanley received a cheque for RM1,200 from W. Albert which was paid directly into the bank. This represented cash sales.
6 Paid wages in cash RM60.
8 Sold goods for cash RM300.
10 Received cash from G. Small for RM600, in full settlement of a debt of RM640; this was paid directly into the bank.
11 Paid sundry expenses in cash RM48.
14 Purchased goods by cheque for RM1,400.
18 Paid J. Sandoz a cheque of RM190 in full settlement of a debt of RM210.
23 Withdrew RM25 from the bank to pay the office cleaning company.
24 Paid wages in cash RM60.
26 Sold goods for cash RM380.
28 Paid salary by cheque RM240.
31 Retained cash amounting to RM600 and paid the remaining to the bank.
Required:

a) Record the above transactions into the “T” accounts.

Capital Account
May RM May RM
31 Balance c/d 6,400 1 Cash 400
Bank 6,000
6,400

Cash Account
Tutorial 4 Posting to Ledger & Trial Balance 5 LTJ 2022

May RM May RM
1 Capital 400 6 Wages 60
8 Sales 300 11 Sundry Expenses 48
10 Trade Receivables: G. Small 600 24 Wages 60
26 Sales 380 31 Bank 912
Balance c/d 600
1,680 1,680
June
1 Balance b/d 600

Bank Account
May RM May RM
1 Capital 6,000 14 Purchases 1,400
4 Sales 1,200 18 Trade Payables: J Sandoz 190
31 Cash 912 23 Office Cleaning 25
28 Salaries 240
31 Balance c/d 6,257
8,112 8,112

Sales Account
May RM May RM
31 SPL 1,880 4 Bank 1,200
8 Cash 300
26 Cash 380
1,880 1,880

Wages Account
May RM May RM
6 Cash 60 31 SPL 120
24 Cash 60
120 120
Tutorial 4 Posting to Ledger & Trial Balance 6 LTJ 2022

Trade Receivables: G. Small Account

May RM May RM
31 Balance c/d 640 10 Cash 600
Discount Allowed 40
640 640

Discount Allowed Account

May RM May RM
10 Trade Receivables: G. Small 40 31 SPL 40
40 40

Sundry Expenses Account

May RM May RM
11 Cash 48 31 SPL 48
48

Purchases Account
May RM May RM
14 Bank 1,400 31 SPL 1,400
1,400 1,400

Trade Payables: J Sandoz Account

May RM May RM
18 Bank 190 31 Balance c/d 210
Discount Received 20
210 210

Disocunt Received Account

May RM May RM
31 SPL 20 18 Trade Payables: J Sandoz 20
 Tutorial 4 Posting to Ledger & Trial Balance 7 LTJ 2022

20 20

Office Cleaning Account

May RM May RM
23 Bank 25 31 SPL 25
25 25

Salaries Account
May RM May RM
28 Bank 240 31 SPL 240
240 240

RM RM
Capital 6,400
Cash 600
Bank 6,257
Sales 1,880
Wages 120
Discount Allowed 40
Sundry Expenses 48
Purchases 1,400
Discount Received 20
Office Cleaning 25
Salaries 240
Trade Receivables: G. Small 640
Trade Payables: J Sandoz 210
8,940 8,940

b) Prepare Statement of Profit or Loss for the month ended 31 May.

Tutorial 4 Posting to Ledger & Trial Balance 8 LTJ 2022

RM RM RM
Net Sales 1,880
Less: Cost of Goods Sold
Purchases (1,400)
Gross Profit 480

Add: Income
Discount Received 20
500
Less: Expenses
Wages 120
Discount Allowed 40
Sundry Expenses 48
Office Cleaning 25
Salaries 240 (473)
Net Profit 27

RM RM RM
Current Assets
Cash 600
Bank 6,257
Trade Payables: J Sandoz 210
7,067
Equity
Opening Capital 6,400
Add: Profit 27
Closing Capital 6,427
Current Liabilities
Trade Receivables: G. Small 640
7,067
 Tutorial 4 Posting to Ledger & Trial Balance 9 LTJ 2022

Question 2

Melany started her business, Dream Accessories Shop on 1 October

The following transactions occurred during the month:

Oct
1 Started the business with RM15,000 in the bank.
2 Bought goods RM10,450 on credit from ByeBye Trading.
5 Cash sales RM5,100.
6 Paid wages in cash RM110.
7 Sold goods RM1,650 on credit to Kylan
9 Paid rent by cheque RM 150.
15 Bought fixture on credit from Cozy RM1,200
17 Paid ByeBye Trading by cheque for RM740
21 Return goods to ByeBye Trading RM500
24 Kylan paid his account by cheque RM815
31 Bought a van paid by cheque RM6,250

Closing inventory is RM5,200 as at 31 October.

Required:

a) Record the above transactions into the “T” accounts.

Capital Account
Oct RM Oct RM
31 Balance c/d 15,000 1 Bank 15,000
Tutorial 4 Posting to Ledger & Trial Balance 10 LTJ 2022

Bank Account
Oct RM Oct RM
1 Capital 15,000 9 Rent 150
24 Trade Receivables: Kylan 815 17 Trade Payables: ByeBye Trading 740
31 Vehicle 6,250
Balance c/d 8,675
15,815 15,815

Purchases Account
Oct RM Oct RM
2 Trade Payables: ByeBye Trading 10,450 31 SPL 10,450

Trade Payables: ByeBye Trading

Oct RM Oct RM
17 Bank 740 2 Purchases 10,450
21 Purchases Returns 500
31 Balance c/d 9,210
10,450 10,450

Cash Account
Oct RM Oct RM
5 Sales 5,100 6 Wages 110
31 Balance c/d 4,990
5,100 5,100

Sales Account
Oct RM Oct RM
31 SPL 6,750 5 Cash 5,100
7 Trade Receivables: Kylan 1,650
6,750 6,750

Wages Account
Tutorial 4 Posting to Ledger & Trial Balance 11 LTJ 2022

Oct RM Oct RM
6 Cash 110 31 SPL 110

Trade Receivables: Kylan

Oct RM Oct RM
7 Sales 1,650 24 Bank 815
31 Balance c/d 835
1,650 1,650

Rent Account
Oct RM Oct RM
9 Bank 150 31 SPL 150

Fixture & Fittings Account

Oct RM Oct RM
15 Other Payables: Cozy 1,200 31 Balance c/d 1,200

Other Payables: Cozy Account

Oct RM Oct RM
31 Balance c/d 1,200 15 Fixture 1,200

Purchases Returns Account

Oct RM Oct RM
31 Balance c/d 500 21 Trade Payables: ByeBye Trading 500
 Tutorial 4 Posting to Ledger & Trial Balance 12 LTJ 2022

Vehicle Account
Oct RM Oct RM
31 Bank 6,250 31 Balance c/d 6,250

b) Prepare the Trial Balance as at 31 October

RM RM
Capital 15,000
Bank 8,675
Purchases 10,450
Trade Payables: ByeBye Trading 9,210
Cash 4,990
Sales 6,750
Wages 110
Trade Receivables: Kylan 835
Rent 150
Fixture & Fitting 1,200
Other Payables: Cozy 1,200
Purchases Returns 500
Vehicle 6,250

32,660 32,660

c) Prepare the Statement of Profit or Loss for the month ended 31 October.
RM RM RM
Net Sales 6,750
Less: Cost of Goods Sold
Purchases 10,450
(-) Purchases Returns (500)
 Tutorial 4 Posting to Ledger & Trial Balance 13 LTJ 2022

9,950
(-) Clsoing Inventories (5,200)
(4,750)
Gross Profit 2,000

Less: Expenses
Wages 110
Rent 150 (260)
Net Profit 1,740

d) Prepare the Statement of Financial Position as at 31 October.

RM RM RM
Non-current Assets
Fixture & Fitting 1,200
Vehicle 6,250
7,450
Current Assets
Closing Inventories 5,200
Bank 8,675
Cash 4,990
Trade Receivables: Kylan 835 19,700
27,150
Equity
Opening Capital 15,000
Add: Profit 1,740
Closing Capital 16,740

Current Liabilities
Trade Payables: ByeBye Trading 9,210
Other Payables: Cozy 1,200 10,410
27,150
 Tutorial 4 Posting to Ledger & Trial Balance 14 LTJ 2022

Question 3

From the following list of balances extract from Evergreen Trading’s book as at 31 May 2022

RM RM
Cash in hand 400 Trade payables 5,425
Cash at bank 6,800 Sales 12,400
Capital 18,000 Purchases 9.400
Drawings 300 Returns Outwards 275
Motor vehicles 8,500 Wages 5,000
Trade receivables 2,100 Rent & rates 3,600

Required:
Prepare a proper Trial Balance for Evergreen Trading as at 31 May 2022.

RM RM
Cash in hand 400
Cash in bank 6,800
Capital 18,000
Drawings 300
Motor Vehicles 8,500
Trade Receivables 2,100
Trade Payables 5,425
Sales 12,400
Purchases 9,400
Returns Outwards 275
Wages 5,000
Rent & Rates 3,600
36,100 36,100
Tutorial 4 Posting to Ledger & Trial Balance 15 LTJ 2022