- Especially the additional information so that you know items that need adjustments
- Highlight the items in the TRIAL BALANCE so that you know you need to do adjustments
Additional information:
1. Closing inventories were valued at RM34,600 at year end.
2. The rental expenses were for 15 months.
3. The depreciations are to be provided on yearly basis as follows:
Furniture 10% on cost
Office equipment 20% on cost
Motor vehicle 20% on net book value
4. One of the accounts receivables has no longer being able to pay her debts amounted to RM2,500 and need to be written off. The allowance for doubtful debts is provided at the rate of 2% on the net accounts receivables balance.
5. The interest on loan at 5% from bank was still accrued at year end.
6. During the year, RM5,000 interest income has been earned from the investing activity and this transaction has not been recorded anywhere in the books of account.
7. The following expenses were still accrued at year end:
Water and electricity RM 650
Salaries to workers RM1,900
Insurance expenses RM 350
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