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Question 3
The Trial Balance of Out of Direction Enterprise as at 31 December 2014 are as follows:
| | Debit RM | Credit RM |
| Capital | | 35,000 |
| Drawings | 2,150 | |
| Vehicles at cost | 7,500 | |
| Fixture and fittings at cost | 30,000 | |
| Inventory on 1 January 2014 | 16,750 | |
| Accounts receivables | 4,500 | |
| Accounts payables | | 5,050 |
| Cash in hand | 3,750 | |
| Short-term borrowing | | 2,000 |
| Rent | 4,550 | |
| Maintenance | 880 | |
| Commission | | 2,080 |
| Interest | | 1,000 |
| Return inwards | 400 | |
| Return outwards | | 1,050 |
| Purchases and Sales | 22,140 | 45,300 |
| Custom duties | 2,160 | |
| Accumulated depreciation on vehicles | | 3,000 |
| Provision for doubtful debts | | 300 |
| | 94,780 | 94,780 |
Additional information:
- Inventory on 31 December 2014 was valued at RM18,000.
- Custom duties owing amounted to RM600.
- Rent not yet paid amounted RM50.
- Commission received in advance amounted to RM400.
- Drawings of cash worth RM550 for personal use had not been taken into account.
- Maintenance paid in advance amounted RM120.
- Interest not yet received amounted RM500.
- Vehicles are depreciated at 10% per annum using straight line method.
- Fixture and fittings are depreciated at 20% per annum on their original cost.
- Provision for doubtful debts is to be adjusted to 5% of accounts receivables.
From the above information, you are required to:
- Prepare Statements of Comprehensive Income (Income Statement) for the year ended 31 December 2014. (20 Marks)
- Prepare Statements of Financial Position (Balance Sheet) as at that date.
(20 Marks)
(Total: 40 Marks)
Pls show your working and formula on how to calculate the closing stock, Thanks.
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