50.1K

Verified Solution

Link Copied!

Self Practice 2

The following trial balance has been extracted from the ledger of Azwin, a sole trader as at 31 May 2019, the end of her most recent financial year.

The following additional information as at 31 May 2019 is available:

1. Inventories as at the close of business were valued at RM25,900.
2. Depreciation for the year ended 31 May 2019 has yet to be provided as follows:
   • Property: 1% using straight line method.
   • Equipment:15% using reducing balance method.
3. Wages and salaries are accrued by RM140.
4. Other operating expenses include certain expenses prepaid by RM500.Other expenses included under this heading are accrued by RM200.
5. The provision for doubtful debts is to be adjusted so that it is 0.5 percent of trade receivables as at 31 May 2019.
6. 'Purchases include goods valued at RM1,040 that were withdrawn by Azwin for her own personal use.

Required:

1. Prepare a Statement of Profit or Loss for the year ended 31 May 2019.
2. Prepare a Statement of Financial Position (Balance Sheet) as at 31 May 2019.

Debit(RM) Credit(RM) Property, at cost 90,000 Equipment at cost 57,500 Accumulated depreciation (as at 1 June 2018) 12,500 Property 32,500 Equipment Inventories as at 1 June 2018 27,400 Purchases 259,600 Sales revenue 405,000 Discount allowed 3,370 Discount received 4,420 Wages and salaries 52,360 Bad debts 1,720 Loan interest 1,560 Carriage outwards 5,310 Other operating expenses 38,800 Trade receivables 46,200 Trade payables 33,600 Provision for doubtful debts 280 Cash 151 Bank overdraft 14,500 Drawings 28,930 13% long term loan 12,000 Capital 98,101 Capital 98,101 612.901 612.901

Answer & Explanation Solved by verified expert

See Answer