Question 1 The management of Farzana Enterprise has asked you to prepare their...
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Accounting
Question 1
The management of Farzana Enterprise has asked you to prepare their financial statements for the year ended 30 June 2022. The companys trial balance as at that date is as follows:
Trial Balance of Farzana Enterprise as at 30 June 2022
Debit
Credit
(RM)
(RM)
Purchases and sales
320,000
896,625
Discount allowed
45,000
Salaries expenses
151,000
Bad debts
7,500
Insurance
27,000
Interest expenses
7,875
Telephone and internet charges
3,750
Rental and maintenance
30,000
General expenses
41,850
Capital
500,000
Tools
82,500
Carriage outwards
30,000
Carriage inwards
8,500
Return inwards
1,500
Investments
175,000
Land
400,000
Building
180,000
Furniture and Fixtures
45,000
Accumulated depreciation Building
57,000
Accumulated depreciation Furniture and Fixtures
9,600
6% Loan from Ambank, 15 years
262,500
Bank overdraft
34,000
Cash
27,000
Account Receivables
92,100
Inventories, 1 July
87,900
Account Payables
48,750
Drawings
45,000
1,808,475
1,808,475
Additional Information:
Inventory as at 30 June 2022 was RM55,000
Included in the carriage outward is carriage inwards amounting to RM500.
The owner had taken RM800 of goods for her personal use
Depreciation is to be provided as follows:
Furniture and Fixtures 10% on cost, yearly basis
Building 15% on Net Book Value, yearly basis
Additional bad debt of RM800 was to be written off.
Allowance for doubtful debt is to be adjusted to 2% on the outstanding account receivables
The company has not yet paid half of the interest on loan for the year end 2022.
The expenses below were still unpaid on 30 June 2022:
Telephone and internet RM400
General expenses RM500
The Insurance expense was paid for the period from 1 December 2021 to 30 November 2022
Note: Show all relevant workings and journal entries for adjustments.
Required:
A. Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2022
B. Statement of Financial Position as at 30 June 2022
Answer & Explanation
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