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    Accounting

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    mason
    The document provides accounting information for Homemart, a sole proprietorship convenience store, for the year ended September 30, 2021. It includes balances from the books, notes on adjustments needed, and templates for the income statement and balance sheet. Adjustments are needed for goods taken by the owner, equipment revaluation, bank interest, and prepaid insurance. The closing inventory also needs to be calculated since a physical count was not done.

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    Accounting

    Uploaded by

    mason
    27 views3 pages
    The document provides accounting information for Homemart, a sole proprietorship convenience store, for the year ended September 30, 2021. It includes balances from the books, notes on adjustments needed, and templates for the income statement and balance sheet. Adjustments are needed for goods taken by the owner, equipment revaluation, bank interest, and prepaid insurance. The closing inventory also needs to be calculated since a physical count was not done.

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    The document provides accounting information for Homemart, a sole proprietorship convenience store, for the year ended September 30, 2021. It includes balances from the books, notes on adjustments needed, and templates for the income statement and balance sheet. Adjustments are needed for goods taken by the owner, equipment revaluation, bank interest, and prepaid insurance. The closing inventory also needs to be calculated since a physical count was not done.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    27 views3 pages

    Accounting

    Uploaded by

    mason
    The document provides accounting information for Homemart, a sole proprietorship convenience store, for the year ended September 30, 2021. It includes balances from the books, notes on adjustments needed, and templates for the income statement and balance sheet. Adjustments are needed for goods taken by the owner, equipment revaluation, bank interest, and prepaid insurance. The closing inventory also needs to be calculated since a physical count was not done.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    SCHOOL OF BUSINESS

    Subject : Principles of Financial Accounting


    Code : ACC1014
    Revision : Question1

    Learning Objectives
    LO : Able to analyse a transaction (Critical Thinking)
    LO : Able to make period end adjustments
    LO : Able to prepare General Journal Entries
    LO : Able to prepare final statements of P&L, SOCIE, SOFP

    Homemart a small convenience store with the legal status of a sole proprietorship
    has an accounting year end date of 30 September. Below are the balances from the
    books of Homemart as at 30 September 2021

    (RM)
    Capital as at 1 October 2020 85,000
    Drawings 5,100
    Premises at cost 58,000
    Motor vehicle at cost 6,000
    Equipment value at 1 October 2020 1,428
    Account Receivables 17,440
    Account Payables 16,250
    Bank overdraft 7,728
    Inventory 1 October 2020 19,500
    Sales 216,000
    Purchases 176,000
    Salaries expense 28,200
    Insurance expense 8,900
    Administration expenses 4,410

    The following information is to be taken into account:

    Note 1.
    During the year ended 30 September 2021, the owner of Homemart took goods
    costing RM1,900 for his own use. No entries were made in the accounting records.
    An periodic inventory system was used.

    Note 2.
    Equipment was revalued at RM2,340 on 30 September 2021. There were no sales
    or purchases of equipment during the year.

    Note 3
    SCHOOL OF BUSINESS

    A bank statement received on 30 September 2021 included an entry for bank


    interest of RM1,550 on the bank overdraft. No entries were made in the Homemart's
    accounting records.

    Note 4.
    The insurance includes RM2,400 for insurance of the premises. This represents
    insurance cover for sixteen months to 31 January 2022.

    Additional information
    Homemart was unable to conduct a year end stock count and as such decided to
    determine the closing stock by a reconciliation of the stock records. Homemart
    marks up its stock by 25% to determine its selling price.

    Required

    a. Show the adjustments required to reflect the information in the Notes 1, 2, 3, and
    4. Answers for each note are to be shown in four steps,

    Step 1 - Identify affected ledger accounts


    Step 2 – Workings (if any) to reflect the adjustment
    Step 3 - Journal entries to adjust the ledger accounts
    Step 4 - Adjusted amount to transfer to the adjusted trial balance or financial
    statements

    b. Determine Homemart's closing inventory

    c. Prepare the Statement of Profit or Loss for the year ended March 31 2022
    and the Statement of Changes in Equity.
    and the Statement of Financial Position as at March 31 2022.

    Use the templates below. Do NOT add or remove line items from the template.
    SCHOOL OF BUSINESS
    Homemart Bhd
    Profit and Loss for the year ended September 30, 2021
    Sales
    Less Cost of Sales
    Opening Inventory
    Purchases

    Less: Closing Inventory

    Gross Profit

    Less: Expenses
    Bank Interest
    Salaries expense
    Insurance expense
    Administration expenses

    Net Profit

    Homemart Bhd
    Statement of Financial Position as at September 30, 2021
    Fixed Assets
    Premises at cost
    Motor vehicle at cost
    Equipment value

    Current Assets
    Accounts Receiveable
    Prepaid Insurance
    Closing Inventory

    Capital, Sept 30, 2021

    Liabilities
    Accounts Payables
    Bank Overdraft

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