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Question 1 : The following trial balance was extracted from the books of Ahmad Shoes at the year ended 31/12/2010;
| | Debit (RM) | Credit (RM) |
| Purchases and sales | 11,280 | 19,740 |
| Cash at bank | 1,140 | |
| Cash in hand | 210 | |
| Capital as at 1/1/2010 | | 9,900 |
| Drawings | 2,850 | |
| Office furniture | 1,440 | |
| Rent | 1,020 | |
| Wages and salaries | 2,580 | |
| Discounts | 690 | 360 |
| Account receivables and account payables | 4,920 | 2,490 |
| Inventory as at 1/1/2010 | 2,970 | |
| Provision for doubtful debts as at 1/1/2010 | | 270 |
| Van | 2,400 | |
| Maintenance expenses | 450 | |
| Bad debts | 810 | |
| | 32,760 | 32,760 |
Notes:
a. Inventory as at 31/12/2010 RM3,510
b. Wages and salaries accrued at 31/12/2010 RM90
c. Rent prepaid at 31/12/2010 RM140
d. Maintenance expenses owing at 31/12/2010 RM60
e. Increase the provision for doubtful debts by RM60
f. Provide for depreciation as follows: office furniture RM180; van RM480
Required:
Draw up the Income Statement for the year ended 31/12/2010 together with a Balance Sheet as on 31/12/2010.
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