Reference no: EM132468668

Year-end stocktake shows inventory at cost of RM700,000. Included in the inventory was a batch of inventory at the cost of RM45,000 that was damaged due to leaking in the warehouse. This batch can only be sold at RM55,000 with new packaging that will cost RM12,400. The ?xed deposit is for 24 months in a local bank. The deposit was made on 1 July 2017. As at 31 December 2017, the followings were discovered:

Problem 1: Other operating expenses include repair and maintenance cost for the warehouse. At the end of December 2017, RM14,000 worth of maintenance cost paid in cash has not been recorded yet.

Problem 2: Administrative expense includes wages and salary expense. Claims for overtime byadministrative personnel for the month of December 2017 amounted to RM15,000 has not been paid yet. This unpaid amount will be presented as part of accruals.

Problem 3: Included in the rent income is a payment made by an of?ce tenant who paid RM60,000 rent in June 2017 for a year worth of rent until 31 May 2018.

Problem 4: A debt that was written off a year ago, amounted to RM5,000, had been repaid by the debtor.Another customer who owed the company RM21,000 has been declared bankrupt thus will not be able to pay for his debt. These transactions have not been recorded yet.

Problem 5: On 1 December 201?, the company made a purchase of a new of?ce building of RM1,500,000. The purchase was made through ?nancing from Maybank Islamic Berhad