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Question B2
Pigeon, a furniture trading company, extracted the following balances from its ledger on 31 December 2017:
RM RM
Debit Credit
Purchases 643,000
Sales 730,900
Returns outwards 3,920
Returns inwards 4,100
Delivery truck 82,100
Carriage outwards 9,100
Inventory, 1 January 2017 70,800
Computer 5,800
Cash at bank 32,100
Salaries and wages 82,300
Rent and rate 67,000
Electricity bills 5,500
Phone and fax bills 4,400
Display furniture 20,200
Accounts receivable 24,100
Accounts payable 73,410
Motor expense 4,300
Capital (opening balance) 281,970
Cash in hand 2,400
Drawings 33,000 ________
1,090,200 1,090,200
The following additional information as at 31 December 2017 is available:
- Inventory was valued RM263,000
Required:
(a) Prepare an income statement for the year ended 31 December 2017, and (12 marks)
(b) the statement of financial position (balance sheet) as at that date. (8 marks)
Question B3
Explain the differences of following items:
(a) Expense and drawing. (3 marks)
(b) Net asset and Non-current assets. (3 marks)
(c) Revenue expenditure and capital expenditure. (4 marks)
(Total= 50 marks)
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