1. FBAF1023 Introduction to Accounting
Final Accounts of the Sole Trader (Week 9)
1. Min is the owner of Mintoya Travel & Tours. The following transactions occurred in the first month of her
business operation.
Dec 1 Invested RM12,000 cash to start the business.
2 Hired a secretary at salary of RM125 per week payable at the end of each month.
3 Paid cash for a Dell computer, RM3,000. The computer is expected to remain in service for 5 years.
4 Purchased office supplies on account, RM300.
9 Rendered travel service to Pulau Redang for clients and received cash for the full amount of RM1,700.
10 Half of the value of the office supplies purchased on Dec 4 is used.
11 Paid utility expenses, RM200.
20 Withdrew RM70 cash for personal use.
22 Rendered hotel booking service for a client on account, RM800.
31 Paid secretary’s salary in full for the month of December (assuming 4 weeks in a month).
Record the above transactions in the general ledger and determine the balances of each account. Prepare the Income
Statement for the month ended 31 December 2006 and a balance sheet as at that date.
2. The ledger of J.S. Hwang, Financial Consultant, contains the following account balances on 30 June 2006.
Dr. (RM) Cr. (RM)
Cash at Bank 6,000
Accounts Receivable 9,260
Office Supplies 1,940
Land 25,600
Building 146,000
Accumulated Depreciation - Building 43,800
Office Equipment 13,500
Accumulated Depreciation - Office Equipment 6,420
Accounts Payable 7,960
Unearned Consulting Fees 3,560
Mortgage Loan 88,600
J.S. Hwang, Capital 42,070
J.S. Hwang, Drawings 52,780
Consulting Fees Revenue 156,860
Insurance Expense 1,660
Salaries Expense 87,940
Electricity Expense 760
Interest Expense 2,090
Telephone Expense 1,740
349,270 349,270
The following information is also available:
(i) According to a physical count, office supplies totaling RM415 are on hand at 30 June.
(ii) The balance in the Unearned Consulting Fees account includes RM210 already earned for services rendered.
(iii) Depreciation on the office equipment is to be provided at 30% per annum on net book value, and depreciation
on building at 6% per annum on cost.
(iv) A 12-month insurance policy was purchased on 1 March for RM1,000.
(v) The June monthly mortgage payment of RM900 has not been paid or recorded. In each payment, RM170 is
attributable to interest.
(vi) The June telephone costs for RM165 are not paid or recorded.
Prepare J.S. Hwang’s trading and profit and loss account for the year ended 30 June 2006 and a balance sheet as at
that date.
UNIVERSITI TUNKU ABDUL RAHMAN 1
DEPARTMENT OF FOUNDATION STUDIES - ARTS

2. FBAF1023 Introduction to Accounting
Final Accounts of the Sole Trader (Week 9)
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3. Daniella Floss operates a dental surgery in the suburbs, and the trial balance show below summarises the year’s
activities.
Daniella Floss, Dentist
Unadjusted Trial Balance as at 30 June 2006
Dr. (RM) Cr. (RM)
Cash at bank 700
Fees revenue 61,000
Debtors 5,100
Equipment 30,000
Accumulated depreciation - Equipment 9,500
Dental supplies 16,000
Office supplies 800
Daniella Floss, Capital 19,000
Daniella Floss, Drawings 14,000
Creditors 2,000
Wages expense - nurse 10,000
Rent expense 5,000
Office expense 2,900
General expense 7,000
91,500 91,500
The following additional information should be considered:
(i) Inventory of dental supplies on hand at 30 June is RM1,400; RM300 office supplies are on hand.
(ii) Depreciate equipment at the rate of 15% p.a. using straight line method.
(iii) Rent has been paid in advance RM450 and has been debited to rent expense.
(iv) Wages earned by the nurse but unpaid, RM150.
Prepare Daniella Floss Income Statement for the year ended 30 June 2006 and a balance sheet as at that
date.
UNIVERSITI TUNKU ABDUL RAHMAN 2
DEPARTMENT OF FOUNDATION STUDIES - ARTS

3. FBAF1023 Introduction to Accounting
Final Accounts of the Sole Trader (Week 9)
4. From the following trial balance of Peter Clayton, Veterinary Surgeon, prepare an Income Statement for the year
ended 31 December 2006, and a balance sheet as at that date.
Dr. (RM) Cr. (RM)
Cash at bank 3,410
Accounts receivable 2,950
Prepaid insurance 420
Building 66,300
Accumulated depreciation - Building 28,220
Equipment 5,030
Accumulated depreciation - Equipment 2,200
Accounts payable 4,010
Mortgage loan 7,130
P. Clayton, Capital 25,960
P. Clayton, Drawings 31,840
Fees earned 56,980
Rent revenue 3,600
Salaries expense 15,900
Telephone expense 1,130
Interest expense 770
Insurance expense 350
128,100 128,100
The following information has not yet been recorded:
(i) Rates owing at 31 December, RM530.
(ii) Depreciation on equipment is RM810, and on building is RM2,320.
(iii) An advance fee payment of RM100 for surgery to be performed in January 2007 was credited to Fees Earned.
(cont’ next page...)
(iv) The mortgage contract provides for a monthly payment of RM250 plus interest. The December payment was
not made. Interest of RM70 is accrued on the mortgage.
(v) Prepaid insurance of RM310 has expired.
(vi) Salaries earned by a nurse but not paid amount to RM590.
5. Following is the trial balance of Mr. Jeevan on 31 December 2006.
Dr. (RM) Cr. (RM)
Trade expense 2,025
Discount received 1,370
Salaries 9,287
Traveling expense 1,430
Discount allowed 400
Capital 60,100
Drawings 6,500
Premises 40,000
Furniture 5,000
Stock on 1st January 15,000
Cash at bank 4,650
Provision for doubtful debts 720
Purchases 66,235
Sales 94,000
Carriage inwards 2,100
Bad debts written off 1,350
Sundry debtors 16,000
Sundry creditors 15,421
Bank charges 134
Rent 1,500
171,611 171,611
UNIVERSITI TUNKU ABDUL RAHMAN 3
DEPARTMENT OF FOUNDATION STUDIES - ARTS

4. FBAF1023 Introduction to Accounting
Final Accounts of the Sole Trader (Week 9)
Prepare the trading and profit and loss account for the year ended on December 31, 2006. Also prepare the balance
sheet as on that date.
Following are points that should be taken into account:
(i) Mr. Jeevan’s wife works in the business and is allowed a salary of RM2,400 per annum. This amount has been
included in the drawings account.
(ii) Provide depreciation of RM2,000 for premises and RM500 for furniture.
(iii) Of the sundry debtors due on 31 Dec 2006, 4% are irrecoverable and should be written off. The provision for
doubtful debts should be maintained at 5%.
(iv) Rent due but not paid is RM500 and the salaries include RM250 paid in advance to staff.
(v) Stock as on December 31, 2006 is valued at RM15,500.
UNIVERSITI TUNKU ABDUL RAHMAN 4
DEPARTMENT OF FOUNDATION STUDIES - ARTS