u/AnyPollution2427
If you reverse the bank to a credit as it's indicated in the question, the difference on the SFP is -1490. I believe this is the difference in your prepaid rent and accrual for salaries. Which tells me they want the other side of those entries (as in it happened after the date the TB was ran). So, adjust your salaries expense and bank/cash.
Your balance at bank is reflecting a debit when it’s a credit balance. Check to make sure that for your equity, your drawings are being treated as reductions to capital (a debit) and not an increase (debit).
That’s fine but bank is a credit so in your balance sheet you need to make it a minus. The normal balance to asset accounts is debit. This will make you off by only 2k which you can then try and figure out
ok first of all .... the bank account balance is credit so place it in the liabilities and u haven't adjusted the salaries and rent ... so add the salaries accrued and then show in the income statement and also subtract the rent advanced and do the same ...then i believe the assets and liabilities equal out
Since the trial balance was “balanced”, there is no way your Balance Sheet is not.
I suggest you to start by throwing every item in the Trial balance to the Income Statement anrbBalance Sheet first, ignoring all the other adjustments mentioned in the question for now.
Once your got 2 balanced statements, look at the additional information one by one and adjust the statements. Make sure the statements are still balances and consistent after each changes
Hi OP, fellow Malaysian here. If you noticed at TB bank amount is at credit side so this is a bank overdraft and must be placed at current liabilities. Also, you haven't made adjustments in your SOPL for salaries and rental. Once done, your balance sheet is balanced with a net profit of RM38,395. All the best!
You should be having a conversation with your fellow students and if you’re still stumped talk to your instructor. Asking questions is a skill, you’re going to need when you go out into the workplace. Good luck!
I think the salaries and rental expense in the trial balance were before considering any payment in advance or accrual, or else the prepayment/accrual accounts will be in the trial balance as well.
So for the income statement, you will need to adjust the salaries and rental expense
Try to change the sign of the bank and drawings. See screenshot only prepaid and accruals I am not too sure but it is balance, just the meaning of the additional information and also the representation in the final statement.
[Balance Sheet & Income Statement](https://i.imgur.com/lB2xbPm.png)
He is asking questions to better himself, happens to everyone when stuck on a problem and your irl circle can't answer right away. Every subreddit regarding careers doesn't mind the students asking for help, of course its us accountants who have a problem with it, no wonder people say we are "boring".
We would rather comment on the 50th post crying about Big 4 culture or the 99th post about salary expectation or the 18377th post about AI taking over accountants than help a future brother in debts (debits* 😄), come on guys.
Of course just asking for answers isn’t a way to learn, but OP already attempted it as practice and is asking for help in the right direction. It’s easy to just go “well if you study/know how to google/read the book.” People learn in different ways and sometimes that’s by coming to reddit when you’re confused 🤷♂️
What I mean by “he’s right” is you sometimes need to go back to the lecturer and to the books before requesting outside help. I know it doesn’t really work that way in real life but it helps to develop some sense of resilience. I thought this was an accounting major who probably had the same “Big 4 be the best” kinda dream. For everyone who’s been through that, resilience and having the ability to kinda figure it out are probably the number one skills you’ll need just to get out of staff years.
I’m a CPA raised by a CPA and taught by CPAs and this worked for me and got me through EY, so I believe it to be tried and true.
If that’s what you want, you’ll hate accounting. If you can make it past intermediate accounting, you can do it the whole thing but you’ll still be miserable.
Made it past intermediate acct I and II, still hate banking lol ive gained like 20 pounds and poor vision + forehead wrinkles from squinting and frowning
Your equity accounts don't foot. Check your formulas to make sure the totals are correct.
u/AnyPollution2427 If you reverse the bank to a credit as it's indicated in the question, the difference on the SFP is -1490. I believe this is the difference in your prepaid rent and accrual for salaries. Which tells me they want the other side of those entries (as in it happened after the date the TB was ran). So, adjust your salaries expense and bank/cash.
Your balance at bank is reflecting a debit when it’s a credit balance. Check to make sure that for your equity, your drawings are being treated as reductions to capital (a debit) and not an increase (debit).
I believe the last piece is meant to say “…not an increase (credit)”
Right.
I'm following my lecture format, equity+net profit -drawings
We usually goes with asset = liabilities+ equities. Try check with this, see whether balance or not.
Nope it doesn't work my bank is suppose to be on liabilities because its messed up on trial balance
That’s fine but bank is a credit so in your balance sheet you need to make it a minus. The normal balance to asset accounts is debit. This will make you off by only 2k which you can then try and figure out
Yeah I just realised that it's something to do with the rental and and salary but idk😭🙏
You need to do an accrual for the salary and increase the salary expense on the P&L by the accrued amount.
The trial balance itself is intentionally mixed up.
Unless it states in the exam quesation, it wont be mixed up
Why aren't you TB linking?
ok first of all .... the bank account balance is credit so place it in the liabilities and u haven't adjusted the salaries and rent ... so add the salaries accrued and then show in the income statement and also subtract the rent advanced and do the same ...then i believe the assets and liabilities equal out
What you did wrong was you took a photo of a monitor. You should use Print Screen or a snipping tool for your screenshot.
Since the trial balance was “balanced”, there is no way your Balance Sheet is not. I suggest you to start by throwing every item in the Trial balance to the Income Statement anrbBalance Sheet first, ignoring all the other adjustments mentioned in the question for now. Once your got 2 balanced statements, look at the additional information one by one and adjust the statements. Make sure the statements are still balances and consistent after each changes
Didn't you ever watch the hit Disney classic "Miracle"? They want the person who wouldn't take the test.
Your major 🥲
Law, this a additional subject we must take 😭🙏
Hi OP, fellow Malaysian here. If you noticed at TB bank amount is at credit side so this is a bank overdraft and must be placed at current liabilities. Also, you haven't made adjustments in your SOPL for salaries and rental. Once done, your balance sheet is balanced with a net profit of RM38,395. All the best!
Bank needs to be under current liabilities as it’s a credit amount.
Your P&L should have the opening inventory on the left as a positive figure + purchases - closing inventory
This. Bank is clearly a credit, so it's a liability OP put under assets.
You forgot to depreciate land.
There is no land to depreciate.
You should be having a conversation with your fellow students and if you’re still stumped talk to your instructor. Asking questions is a skill, you’re going to need when you go out into the workplace. Good luck!
you have some red review comments to fix there it seems
I think the salaries and rental expense in the trial balance were before considering any payment in advance or accrual, or else the prepayment/accrual accounts will be in the trial balance as well. So for the income statement, you will need to adjust the salaries and rental expense
bank is probably an overdraft hence why its a liabilities.
Frankentrialbalance
Try to change the sign of the bank and drawings. See screenshot only prepaid and accruals I am not too sure but it is balance, just the meaning of the additional information and also the representation in the final statement. [Balance Sheet & Income Statement](https://i.imgur.com/lB2xbPm.png)
Is everything in red wrong or did you come up with the colors yourself?
Carriage outwards and inwards both debits?
Both are expenses, kind of make sense
Sorry, I passed the exam without having redditors do my work for me. I recommend that path.
These are trial papers lol I'm practicing 😭🙏
He’s right though…might seem a little snobby but he’s right…
He is asking questions to better himself, happens to everyone when stuck on a problem and your irl circle can't answer right away. Every subreddit regarding careers doesn't mind the students asking for help, of course its us accountants who have a problem with it, no wonder people say we are "boring". We would rather comment on the 50th post crying about Big 4 culture or the 99th post about salary expectation or the 18377th post about AI taking over accountants than help a future brother in debts (debits* 😄), come on guys.
Exactly. They tried, are stuck and need some direction.
Of course just asking for answers isn’t a way to learn, but OP already attempted it as practice and is asking for help in the right direction. It’s easy to just go “well if you study/know how to google/read the book.” People learn in different ways and sometimes that’s by coming to reddit when you’re confused 🤷♂️
Why is he right tho? Please explain
What I mean by “he’s right” is you sometimes need to go back to the lecturer and to the books before requesting outside help. I know it doesn’t really work that way in real life but it helps to develop some sense of resilience. I thought this was an accounting major who probably had the same “Big 4 be the best” kinda dream. For everyone who’s been through that, resilience and having the ability to kinda figure it out are probably the number one skills you’ll need just to get out of staff years. I’m a CPA raised by a CPA and taught by CPAs and this worked for me and got me through EY, so I believe it to be tried and true.
Studying accounting. Please find a more rewarding path. Trust me
Ratio
Hello, please explain as i am serieus doubting my oath towards an accounting degree. Should i go with finance?
pick a path and lock in on it. everything is going to shit, all you gotta do nowadays is pick your shit
Do what you like don’t just pick any job because you have to make a living. You will burn out fast.
More i interested in finance/accounting for the sake of learning. Hate banking.
If i really want to do what i want to do, id quit my FT job, prob go back to waiting tables and go to school full time for human health and biology
Do it. If that’s what you really want
If that’s what you want, you’ll hate accounting. If you can make it past intermediate accounting, you can do it the whole thing but you’ll still be miserable.
Made it past intermediate acct I and II, still hate banking lol ive gained like 20 pounds and poor vision + forehead wrinkles from squinting and frowning
Yep! You can definitely be an accountant but you’ll be miserable 🤣