1. Tutorial 8: Final Accounts of the Sole Trader
Question 1
Suzuka Enterprise trial balance at 31 December 2007 is shown as below:
Trial Balance as at 31 December 2007
Capital, 1 Jan 2007 2,300,000
Stock as at 1 Jan 2007 1,146,000
Machinery 925,000
Motor vehicles 650,000
Freehold land 5,500,000
Factory building 2,455,000
Provision for depreciation as at 31 December 2007 :
Machinery 425,000
Motor vehicles 320,000
Factory building 325,000
Trade debtors/Trade creditors 1,854,000 1,386,000
Other debtors and deposits 580,500
Other creditors and accruals 284,000
Return Outwards 1,545,000
Discount allowed/discount received 38,000 55,000
Motor expenses 72,000
Electricity and water 510,000
Purchases and sales 8,780,000 15,650,000
Interest expenses 40,000
Cash at bank 69,500
Bank overdraft 210,000
Insurance 180,000
Term loan 300,000
22,800,000 22,800,000

2. Additional information :
(i) Insurance includes RM25,000 relating to financial year ending 31
December 2008.
(ii) The provision for doubtful debt is to be adjusted to 2% of trade debtors’
balance.
(iii) At 31 Dec 2007, there is electricity and water bill accrued of RM42,000.
(iv) Depreciation for the year ended 31 Dec 2007 has yet to be provided as
follows by using reducing balance method:
Machinery 10%
Motor vehicles 20%
Factory building 2%
(v) Stock as at 31 Dec 2008 was valued at RM1,380,000
Required:
(a) Prepare the Trading and Profit and Loss Account for Suzuka Enterprise for
the year ended 31st December 2007.
(b) Prepare the Balance Sheet as at 31st December 2007.