question archive Question 1 The following trial balance was extracted from the books of Jaya Enterprise at 31 December 2020

Question 1 The following trial balance was extracted from the books of Jaya Enterprise at 31 December 2020

Subject:AccountingPrice: Bought3

Question 1

The following trial balance was extracted from the books of Jaya Enterprise at 31 December 2020.

 

 

RM

RM

Bank

135,000

 

Drawings

10,000

 

Inventory as at 1 January 2020

800,000

 

Sales

 

2,100,000

Purchases

1,170,000

 

Accounts receivable

468,000

 

Allowance for doubtful debts

 

45,000

Accounts payable

 

890,000

Rent and rates

128,000

 

Heating and lighting

65,000

 

Insurance

350,000

 

Commission received

 

42,000

Bad debts

72,000

 

Motor vehicles

600,000

 

Returns inwards

30,000

 

Returns outwards

 

20,000

Furniture and fittings

400,000

 

Accumulated depreciation:

Motor vehicles

Furniture and fittings

 

 

180,000

76,000

Capitals

 

875,000

 

4,228,000

4,228,000

 

Additional information:

 

  1. Inventory at the cost of business has been valued at RM550,000 at market price.
  2. The allowance for doubtful debts is to be adjusted to 5% of accounts receivable.
  3. Rent is due but unpaid RM42,000.
  4. The amount shown for insurance on the trial balance includes a premium paid of RM4,200, which represents the annual insurance premium to 31st March 2021.

 

  1. Depreciation is written off non-current assets as follows: Motor vehicles at 10% per annum using straight line basis

Furniture and fittings at 10% per annum using reducing balance

 

 

Required:

 

  1. Prepare the income statement for Jaya Enterprise for the year ended 31 December 2020

(15 marks)

 

  1. Prepare the balance sheet for Jaya Enterprise as at 31 December 2020. (10 marks)

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