Reference no: EM132943805
Triple SM Iron Works is owned by Encik Sazali and located in Bandar baru Nilai. The business is one of the top manufacturers of all kinds of metal works for commercial and residential projects. It specialises in manufacturing grill, gate, staircase, awning, fencing as well as supplying stainless steel, wrought iron, metal and other accessories. The business was commenced on 1 January 2019 with contribution of RM80,000 by its owner. Encik Sazali also brought his own car worth RM15,000 into the business as part of his capital.
A 10-year loan of RM100,000 from HBSS Bank was obtained as additional fund. The interest on loan is to be charged at 8% per annum. RM20,000 of the fund was used to buy a lorry and RM50,000 for machinery for the business. The depreciation on the non-current asset is to be provided using straight line method at 10% per annum and the method is expected to be used in the following years.
As for the 12 months operation, the following figure have been produced:
Particulars
RM
Metal and Iron 10,000
Salaries 40,000
Commission received 3,000
Advertising 1,000
Electricity 2,200
Rental expense 14,400
Sales 45,000
Interest received 1,200
Problem a. Based on case 1, find the total expenses of Triple SM Iron Works Trading for the year ended 31 December 2019.
Problem b. Based on case 1, Illustrate the double entries for all revenues received for the year ended 31 December 2019.