question archive The following is the Trial Balance extracted from the books of Albert Enterprise as of 31 December 2020: Debit Credit RM RM Travelling expenses 3,040 Carriage Inwards 156 Discount allowed Discount received General expenses 2,056 Utility expenses 2
The following is the Trial Balance extracted from the books of Albert Enterprise as of 31 December 2020: Debit Credit RM RM Travelling expenses 3,040 Carriage Inwards 156 Discount allowed Discount received General expenses 2,056 Utility expenses 2
Subject:AccountingPrice:2.84 Bought3
The following is the Trial Balance extracted from the books of Albert Enterprise as of 31 December 2020: Debit Credit RM RM Travelling expenses 3,040 Carriage Inwards 156 Discount allowed Discount received General expenses 2,056 Utility expenses 2.560 Carriage outwards Salesmen commission 5.480 Capital as of 1 January 2014 20,000 Loan from Bean 3.500 Drawings 1.750 Accounts payable 10,056 Bank Charges 585 Rent 2,000 Return Inwards Return Outwards Salaries 3.500 Printing and Stationery 640 Building 9,000 Furniture and Fittings 3,100 Provision of depreciation of Building 186 235 1000 Financial Accounting ACC 1023
7,500 8,000 2,650 86,046 Machinery Inventory as at 1 January 2020 Cash at bank Purchases Sales Bad debts Provision of doubtful debts Accounts receivable 124.450 256 1000 21,280 160,379 160,379 1. Inventory as at 31 December 2020 is valued at RM 7,550. II. Calculate 10% depreciation on Machinery using straight-line method. III. Calculate 10% depreciation on building using reducing balance method. IV. Travelling expenses prepaid RM400 V. Salary accrued RM150 Required: (a) Prepare the Statement of comprehensive Income for the year ended 31 December 2020. (12 marks) (b) Prepare the Financial Position as at 31 December 2020, (13 marks)
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Required (a)
| Statement of Comprehensive Income | ||
| For the year ended 31 December, 2020 | ||
| Sales | 124,450 | |
| Less: Return Inwards | 186 | |
| Less: Discount allowed | 48 | |
| Less: Salesmen commission | 5,480 | |
| Net Sales | 118,736 | |
| Cost of goods sold | ||
| Beginning Inventory | 8,000 | |
| Purchases less return less discount | 85,673 | |
| Carriage Inwards | 156 | |
| Less: Ending Inventory | 7,550 | |
| Cost of goods sold | 86,279 | |
| Gross profit | 32,457 | |
| Operating expenses | ||
| Travelling expenses | 2,640 | |
| General expenses | 2,056 | |
| Utilities expenses | 2,560 | |
| Carriage outwards | 546 | |
| Bank charges | 585 | |
| Rent | 2,000 | |
| Depreciation on machinery | 750 | |
| Depreciation on building (8,000 x 10%) | 800 | |
| Bad debts | 256 | |
| Salaries | 3,650 | |
| Printing and stationery | 640 | |
| 16,483 | ||
| Income before income taxes | 15,974 | |
| Income taxes | - | |
| Income from continuing operations | 15,974 | |
| Discontinued operations | - | |
| Extra-ordinary items | - | |
| Net Comprehensive Income | 15,974 | |
Required (b)
| Statement of Financial Position | ||
| As at 31 December, 2020 | ||
| Assets | ||
| Non-Current Assets | ||
| Building | 9,000 | |
| Less: Provision for depreciation | 1,800 | |
| 7,200 | ||
| Machinery | 7,500 | |
| Less: Provision for depreciation | 750 | |
| 6,750 | ||
| Furniture and Fittings | 3,100 | |
| Current Assets | ||
| Cash at bank | 2,650 | |
| Inventory | 7,550 | |
| Prepaid travelling expenses | 400 | |
| Accounts receivable | 21,280 | |
| Less: Provision for doubtful debts | 1,000 | |
| 20,280 | ||
| TOTAL ASSETS | 47,930 | |
| Liabilities and Equity | ||
| Owner's Equity | ||
| Capital as at January 1, 2014 | 20,000 | |
| Net Comprehensive Income | 15,974 | |
| Less: Drawings | 1,750 | |
| 34,224 | ||
| Non-Current Liabilities | ||
| Loan from Bean | 3,500 | |
| Current Liabilities | ||
| Accounts payable | 10,056 | |
| Salary accrued | 150 | |
| TOTAL LIABILITIES AND EQUITY | 47,930 |
