3. Mr Jamil, a trader, completed a year's trading on 31 October 2020. The followingbalances were extracted from the business records:ParticularsDebitCreditRMRMPurchases and SalesSales returns and purchases returnsLandMachinesOffice equipmentVehiclesProvision for depreciation at 1 November 2019:52,650 160,720340100,000140,00030,00075,0001,213MachinesOffice equipmentVehicles28,00016,80028,000Office expensesCash in handSelling expensesDrawingsWagesStock at 1 Nov 2019Provision for doubtful debts as at 1 Nov 2019Debtors and creditorsRepairsBad debtsJamil – Capital account as at 1 Nov 2019Cash at bank11,5001758,8206,00048,0002,5006508,60014,5002,370240251,512ТOTAL3,400495,495 495,495Mr Jamil also provides the following information at 31 October 2020:i. Stock was valued at RM2,750ii. The provision for doubtful debts should be maintained at 5% of debtors.ii. Wages accrued amounted to RM1,500iv.Office expenses prepaid amounted to RM342 Mr. Jamil had taken RM1,200 worth of goods from stock for personal use duringthe year. This has not been recorded.vi. Depreciation policies were:V.Machines20% straight line method20% straight line method30% reducing balance methodOffice equipmentVehiclesRequired:a) Statement Profit or Loss and Other Comprehensive Income for the year Ended 31October 2020.b) Statement of Financial Position as at 31 October 2020.

Name: 3. Mr Jamil, a trader, completed a year's trading on 31 October 2020.
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Description: 3. Mr Jamil, a trader, completed a year's trading on 31 October 2020. The followingbalances were extracted from the business records:ParticularsDebitCreditRMRMPurchases and SalesSales returns and purchases returnsLandMachinesOffice equipmentVehicles

The statement in which all the incomes and expenses are recorded is called statement of Profit and…

Business

Accounting

3. Mr Jamil, a trader, completed a year's trading on 31 October 2020. The following balances were extracted from the business records: Particulars Debit Credit RM RM Purchases and Sales Sales returns and purchases returns Land Machines Office equipment Vehicles Provision for depreciation at 1 November 2019: 52,650 160,720 340 100,000 140,000 30,000 75,000 1,213 Machines Office equipment Vehicles 28,000 16,800 28,000 Office expenses Cash in hand Selling expenses Drawings Wages Stock at 1 Nov 2019 Provision for doubtful debts as at 1 Nov 2019 Debtors and creditors Repairs Bad debts 11,500 175 8,820 6,000 48,000 2,500 650 14,500 2,370 8,600 240 Jamil – Capital account as at 1 Nov 2019 Cash at bank 251,512 3,400 495,495 495,495 TOTAL Mr Jamil also provides the following information at 31 October 2020: i. Stock was valued at RM2,750 ii. The provision for doubtful debts should be maintained at 5% of debtors. ii. Wages accrued amounted to RM1,500 iv. Office expenses prepaid amounted to RM342

3. Mr Jamil, a trader, completed a year's trading on 31 October 2020. The following balances were extracted from the business records: Particulars Debit Credit RM RM Purchases and Sales Sales returns and purchases returns Land Machines Office equipment Vehicles Provision for depreciation at 1 November 2019: 52,650 160,720 340 100,000 140,000 30,000 75,000 1,213 Machines Office equipment Vehicles 28,000 16,800 28,000 Office expenses Cash in hand Selling expenses Drawings Wages Stock at 1 Nov 2019 Provision for doubtful debts as at 1 Nov 2019 Debtors and creditors Repairs Bad debts 11,500 175 8,820 6,000 48,000 2,500 650 14,500 2,370 8,600 240 Jamil – Capital account as at 1 Nov 2019 Cash at bank 251,512 3,400 495,495 495,495 TOTAL Mr Jamil also provides the following information at 31 October 2020: i. Stock was valued at RM2,750 ii. The provision for doubtful debts should be maintained at 5% of debtors. ii. Wages accrued amounted to RM1,500 iv. Office expenses prepaid amounted to RM342

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

3. Mr Jamil, a trader, completed a year's trading on 31 October 2020. The following
balances were extracted from the business records:
Particulars
Debit
Credit
RM
RM
Purchases and Sales
Sales returns and purchases returns
Land
Machines
Office equipment
Vehicles
Provision for depreciation at 1 November 2019:
52,650 160,720
340
100,000
140,000
30,000
75,000
1,213
Machines
Office equipment
Vehicles
28,000
16,800
28,000
Office expenses
Cash in hand
Selling expenses
Drawings
Wages
Stock at 1 Nov 2019
Provision for doubtful debts as at 1 Nov 2019
Debtors and creditors
Repairs
Bad debts
Jamil – Capital account as at 1 Nov 2019
Cash at bank
11,500
175
8,820
6,000
48,000
2,500
650
8,600
14,500
2,370
240
251,512
ТOTAL
3,400
495,495 495,495
Mr Jamil also provides the following information at 31 October 2020:
i. Stock was valued at RM2,750
ii. The provision for doubtful debts should be maintained at 5% of debtors.
ii. Wages accrued amounted to RM1,500
iv.
Office expenses prepaid amounted to RM342

Mr. Jamil had taken RM1,200 worth of goods from stock for personal use during
the year. This has not been recorded.
vi. Depreciation policies were:
V.
Machines
20% straight line method
20% straight line method
30% reducing balance method
Office equipment
Vehicles
Required:
a) Statement Profit or Loss and Other Comprehensive Income for the year Ended 31
October 2020.
b) Statement of Financial Position as at 31 October 2020.

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