please write in a table 6 Following is the trial balance of

please write in a table

6. Following is the trial balance of Pure Gold Enterprise as at 30 June 20X7: Debit Credit Sales Purchases Sales returns Purchase returns Beginning Inventory Provision for bad debts Wages and salaries Insurance Expense Telephone charges Equipment at cost Van Debtors and creditors Bad debts Capital Bank Drawings RM 400,000 350,000 5,000 6,200 100,000 800 30,000 6,000 1,000 40,000 30,000 9,800 200 7,000 179,000 3,000 18,000 593,000 593,000 Additional Information 1. Inventory as at 30 June 20X7 was RM120, 000. 2. Accrued wages RM5, 000. 3. Insurance prepaid RM500 4. The provision for bad debts to be increased to 10% of debtors. 5. Telephone bills outstanding RM220. You are required to: a. Prepare a trading and profit and toss account for the year ended 30 June 20x27 b. Prepare a balance sheet, as at 30 June 20x7.

Solution

Solution a:

Trading and Profit & Loss Account
Pure Gold Enterprises
For the year ended June 30, 20X7
Particulars		Debit	Particulars		Credit
To Beginning inventory		100000	By Sales	400000
To Purchases	350000		Less: Sales Returns	5000
Less: Purchase returns	6200		Net Sales		395000
Net Purchases		343800	By Ending inventory		120000
To Gross Profit		71200
Total		515000	Total		515000
To Wages and Salaries		35000	By Gross Profit		71200
To Insurance expense		5500
To Telephone charges		1220
To Bad debts		380
To Net Profit		29100
Total		71200	Total		71200