LY Pte Ltd is a manufacturing company in Singapore. It commenced business on 1 January 2018.
On 1 January 2018, the company bought a machine for $295,000. It has an estimated useful life of 4 years and a residual value of $15,000.
On 1 July 2019, the company bought a second machine for $150,000 with a useful life of 5 years and no residual value.
The company’s accounting year ends on 31 December. The business adopts the straight-line method of depreciation.
LeLe Arts Studio received its bank statement for the month of December. It showed that the business has a credit balance of $55,200 as of 31 December 2022.
Upon reviewing the records, the business discovered that the following issued cheques have not been presented to the bank:
It also discovered that the deposit of $5,011 made on 31 December was not yet credited by the bank.
In addition, the firm had erroneously recorded cheque 398 of the amount of $1,912 received from a debtor as $1,291 instead.
SafAir Pte Ltd buys and sells dehumidifiers in Singapore. On 1 November, the business has 70 units costing $158 each. During the month, the following movements in inventories were recorded: