As the sole trader of Master trading company in Hong Kong, you have decided to purchase

a MYOB System to replace your existing manual system starting from 1 June 2019. The
financial year of your company closes on 30 June annually. The following is the company’s
trial balance as at 31 May 2019:

Trial balance as at 31 May 2019

Account code Account Name Dr Cr
$ $
3-1100 Capital 100,000
2-1100 15% loan from Z bank (repayable in 2025) 150,000
1-1210 Motor van at cost 98,500
1-1220 Motor van accum dep 59,100
1-1110 Office equipment at cost 16,000
1-1120 Office equipment accum dep 9,600
1-2300 Inventory (1 July 2018) 55,000
1-2110 Cash at bank 38,950
1-2400 Loan to K Ltd (repayable in May 2024) 62,000
1-2200 Trade Receivables 105,800
2-2200 Trade Payables 25,200
4-1100 Sales 261,738
5-1100 Purchases 68,920
1-2210 Allowance for Impairment Loss on T/Rec 7,880
3-1200 Drawings 32,060
8-1000 Discounts received 9,500
8-2000 Rental income 95,000
4-2000 Sales returns 7,920
5-1200 Purchases returns 1,650
5-1300 Carriage inwards 6,300
6-2100 Carriage outwards 6,500
6-1100 Motor expenses 9,350
6-1200 Sundry expense 10,500
6-1300 Telephone & internet 9,630
6-1400 Salaries 42,880
6-1500 Rent and rates 96,000
6-1600 Commission 12,580
6-1700 Insurance 11,760
6-1800 Discount allowed 8,568
6-1900 Impairment Loss on Trade Receivables 9,850
9-1000 Loan interest 10,000
6-2000 Suspense 600
719,668 719,668

Note:
Allowance for Impairment Loss on Trade Receivables = Allow. For Impairment of T/Rec
Impairment Loss on Trade Receivables = Impairment Loss on T/Rec

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The following balances are shown in the sales and the purchase ledger on 31 May 2019
respectively:

Sales ledger as at 31 May 2019

Customer Customer Name Invoices Invoice date Credit terms Amount
No. No. ($)
TR010 New World Ltd 1010561 5 Jan 2019 net 60 days 8,950
TR018 Hong Kong Store 1020965 8 Feb 2019 net 30 days 8,956
TR020 Oxford Ltd 1030540 20 Mar 2019 5/30, net 60 10,589
TR028 Trinity Store 1040258 6 Apr 2019 5/30, net 60 25,890
TR029 Advance Ltd 1040235 2 Apr 2019 5/30, net 60 15,890
TR031 Instant Ltd 1050050 18 May 2019 5/30, net 60 6,980
TR033 Greater China Ltd 1050060 19 May 2019 5/30, net 60 7,965
TR038 Perforce Ltd 1050081 20 May 2019 5/30, net 60 20,580
Total 105,800

Purchase ledger as at 31 May 2019

Vendor Vendor Name Invoices Invoice date Credit terms Amount
No. No. ($)
TP010 Pacific Ltd 356890 6 Mar 2019 5/30, net 60 7,520
TP025 Broadway Ltd AX25890 18 Apr 2019 5/30, net 60 3,250
TP040 Resources Ltd 89541002 1 May 2019 5/30, net 60 2,230
TP054 Tronic Ltd 9865231 15 May 2019 5/30, net 60 2,890
TP085 Trot Ltd 25800210 15 May 2019 5/30, net 60 4,050
TP090 Compact Ltd 3698520 20 May 2019 5/30, net 60 5,260
Total 25,200

Enter the following transactions for your company for the month of June 2019:

1 June Credit sales to:

(1) Instant Ltd $9,800; invoice no. 1060001
(2) Perforce Ltd $102,700; invoice no. 1060002
(3) Trinity Store $85,000; invoice no. 1060003

5 June Credit purchase from:

(1) Resources Ltd $80,600; invoice no. 3514023
(2) Trot Ltd $9,780; invoice no. 25800350
(3) Compact Ltd $6,300; invoice no. 3698620

8 June Received credit not from Resources Ltd for damages goods amounting
to $1,200; Invoice no. 3514023 (Debit note: DN3514).

10 June Received return of damaged goods from Trinity Store for the amount
of $4,800; Invoice no. 1060003. (Credit note: CN1060).

15 June Credit sales to new customers

(1) Shire Ltd $45,500; invoice no. 1060004
(Customer no.: TR039 & Credit terms: 5/30, net 60 days)
(2) Wit Ltd $8,800; invoice no. 1060005
(Customer no.: TR040 & Credit terms: 5/30, net 60 days)

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 16 June Credit purchase from new suppliers
(1) Kingston Ltd $4,100; invoice no. H0215894
(Supplier no.: TP091 & Credit terms: net 60 days)
(2) Fray Ltd $5,700; invoice no. PO/25987
(Supplier no.: TP092 & Credit terms: net 60 days)

17 June Received payment from:

(1) Perforce Ltd for invoice no. 1050081
(2) Instant Ltd for invoice no. 1050050
(3) Advance Ltd for invoice no. 1040235
A 5% discount has been given to customers for payment within the
discount period.

18 June Paid the following suppliers:

(1) Trot Ltd for invoices no. 25800210; cheque no. 325694
(2) Compact Ltd for invoices no. 3698520; cheque no. 325695
(3) Pacific Ltd $5,000; cheque no. 325696
A 5% discount has been received from the suppliers for payment
within the discount period.

22 June Received cheque from cash sales $5,800; invoice no. 1060006.

24 June Paid the following expenses through the business bank account
(1) Salaries $3,200 cheque no. 325697
(2) Sundry expenses $5,200; cheque no. 325698
(3) Motor expenses $2,980; cheque no. 325699

Additional information for year end adjustments:

(1) Inventory as at 30 June 2019 was $78,230 and its net realizable value was
valued at $69,880.
(2) It is decided to write off the balance of New World Ltd (Ref: BD561) and
Hong Kong Stores (Ref: BD965) as bad debts.
(3) Insurance expenses $11,760 covers the period from 1 January 2019 to 31
December 2019.
(4) The following information were accrued expenses at 30 June 2019:
Salaries $22,800
Carriage outwards $3,000
Accountant’s fee $20,800
(5) Interest income $6,800 on loan to K Ltd was not yet received.
(6) The suspense account was analyzed and several errors were found:
Sales was overcast by $700
Sundry expenses was undercast by $400
Motor expenses was overcast by $500
(7) Commission of $12,845 for June has not been paid.
(8) Some office equipment costing $5,500 was purchased on 29 June and its
payment by cheque (cheque no. 325700) had been completely omitted from
the records.
(9) The owner had withdrawn some goods costing $3,800 form the business for
personal use on 6 June 2019. No recording had been made.

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 (10) After reviewing the customers’ credit, Master trading company considered
it appropriate to keep the level of the allowance for impairment loss on
trade receivables the same as last year.
(11) Depreciation is provided at 10% per annum on office equipment using the
straight line method and 10% per annum on motor vans based on the
reducing balance method. It is the company’s policy to provide a full year’s
depreciation in the year of purchase.

Note: Round up all figures to a whole number

Instructions:

I. Use the default chart of accounts of “Other” industry and “Sole Proprietorship” business
to modify names of accounts as per the appendix. The accounts to be modified or used are
underlined for easy reference.

II. Check the “Linked Accounts” in set up of MYOB to see whether they are probably linked.
Amend them if necessary.

REQUIRED:

1. Profit and loss statement (accrual) for the year ended 30 June 2019,
excluding accounts with “zero” balance.
(22 marks)

2. Standard balance sheet as at 30 June 2019.

(16 marks)

3. Receivables aged (detail) report, including “zero” balances, as at 30 June

2019. Account balances should be broken down into 0-30 days, 31-60 days
and 61-90 days. Calculate the number of days since the invoice dates.
(14 marks)

4. Payables aged (detail) report, including “zero” balances, as at 30 June 2019.

Account balances should be broken down into 0-30 days, 31-60 days and
61-90 days. Calculate the number of days since the invoice dates.
(12 marks)

5. The register for the company’s bank for the period from 1 June 2019 to 30
June 2019.
(20 marks)

6. General journal for the month of June 2019.

(16 marks)

[END OF PAPER]

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 Name (Student ID) + Name (Student ID)
Accounts List [Summary]
Account Current Balance
1-0000 Assets $0.00
1-1000 Fixed Assets $0.00
1-1100 Office equipment $0.00
1-1110 Office equipment at Cost $0.00
1-1120 Office equipment Accum Dep $0.00
1-1200 Motor van $0.00
1-1210 Motor van at Cost $0.00
1-1220 Motor van Accum Dep $0.00
1-2000 Current Assets $0.00
1-2100 Cash On Hand $0.00
1-2110 Cash at bank $0.00
1-2120 Payroll Cheque Account $0.00
1-2130 Cash Drawer $0.00
1-2140 Undeposited Cash & Cheque $0.00
1-2150 Petty Cash $0.00
1-2160 Undeposited Funds $0.00
1-2200 Trade Receivables $0.00
1-2210 Allow. for Impairment of T/Rec $0.00
1-2300 Inventory $0.00
1-2400 Loan to K Ltd $0.00
1-2500 Accrued interest income $0.00
1-3000 Other Assets $0.00
1-3100 Deposits Paid $0.00
1-3200 Prepayments $0.00

2-0000 Liabilities $0.00

2-1000 Long-Term Liabilities $0.00
2-1100 Loan to Z bank $0.00
2-1200 Other Long-Term Liabilities $0.00
2-2000 Current Liabilities $0.00
2-2100 Credit Cards $0.00
2-2110 Bankcard $0.00
2-2120 Diners Club $0.00
2-2130 MasterCard $0.00
2-2140 Visa $0.00
2-2200 Trade Payables $0.00
2-2210 Accruals $0.00
2-2350 Sales Tax Payable $0.00
2-2360 Import Duty Payable $0.00
2-2400 Payroll Liabilities $0.00

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2-2410 Payroll Deductions Payable $0.00
2-2420 PAYE Tax Payable $0.00
2-2600 Accrued Taxes $0.00
2-2700 Customer Advance Deposits $0.00
2-2800 Other Current Liabilities $0.00

3-0000 Equity $0.00

3-1000 Owner's Equity $0.00
3-1100 Capital $0.00
3-1200 Drawings $0.00
3-8000 Retained Earnings $0.00
3-9000 Current Year Earnings $0.00
3-9999 Historical Balancing $0.00

4-0000 Income $0.00

4-1000 Gross Receipts or Sales $0.00
4-1100 Sales $0.00
4-1200 Sales Type 2 $0.00
4-1300 Sales Type 3 $0.00
4-2000 Sales returns $0.00
4-3000 Other Income $0.00
4-3100 Shipping Collected $0.00
4-3200 Late Fees Collected $0.00
1-3300 Miscellaneous Income $0.00

5-0000 Cost of Sales $0.00

5-1000 Purchases $0.00
5-1100 Purchases $0.00
5-1200 Purchases returns $0.00
5-1300 Carriage inwards $0.00
5-1400 Inventory adjustment $0.00
5-2000 Cost of Labour $0.00
5-3000 Materials & Supplies $0.00
5-4000 Other Costs $0.00
5-5000 Freight $0.00

6-0000 Expenses $0.00

6-1000 Advertising $0.00
6-1050 Bank Charges $0.00
6-1100 Motor expenses $0.00
6-1200 Sundry Expenses $0.00
6-1300 Telephone & internet $0.00
6-1400 Salaries $0.00
6-1500 Rent & rates $0.00

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6-1600 Commission $0.00
6-1700 Insurance $0.00
6-1800 Discount allowed $0.00
6-1900 Impairment Loss on T/Rec $0.00
6-2000 Suspense $0.00
6-2100 Carriage outwards $0.00
6-2200 Accountant's fee $0.00
6-2250 Shrinkage/Spoilage $0.00
6-2300 Employment Expenses $0.00
6-2310 Staff Amenities $0.00
6-2330 Wages & Salaries $0.00
6-2340 Workers' Compensation $0.00
6-2350 Other Employer Expenses $0.00
6-2400 Rent or Lease $0.00
6-2410 Vehicles, Mach. & Equipment $0.00
6-2420 Other Business Property $0.00
6-2500 Supplies $0.00
6-2600 Taxes & Licenses $0.00
6-2700 Depreciation $0.00
2-2800 Travel, Meals & Entertainment $0.00
6-2810 Travel $0.00
6-2820 Meals & Entertainment $0.00
6-2900 Services $0.00
6-2910 Gas $0.00
6-2920 Electricity $0.00
6-2930 Water $0.00
6-3000 Discounts $0.00
6-3010 Discounts Given $0.00
6-3020 Discounts Taken $0.00

8-0000 Other Income $0.00

8-1000 Discounts received $0.00
8-2000 Rental income $0.00
8-3000 Interest Income $0.00

9-0000 Other Expenses $0.00

9-1000 Interest Expense $0.00
9-1100 Loan interest $0.00
9-1200 Other Interest Expense $0.00