4. The trial balance below was extracted from the books of ClciCaca Enterprise as at 31 Mac 2020: Particulars Debit RM Credit RM 950,000 377,000 432,000 102,000 625,000 Purchases and Sales Plant and machinery Vehicles Land and building Accumulated depreciation: Plant and machinery Vehicles Discount allowed and discount received Returns inwards and returns outwards Carriage inwards Carriage outwards Custom duties 175,000 39,000 760 1,500 44,000 4,700 5,500 15,400 3,600 12,200 Drawings Provision for doubtful debts Salaries and wages Electricity and water Rent and rates 2,000 300,000 65,000 4,000 55,000 Insurance 450,000 Mortgage on land and building Repairs and maintenance Commission earned 6,300 95,000 Accounts receivables 187,000 166,500 Account payable Inventory-1 April 2019 Cash at bank Capital 51,000 41,100 429,640 TOTAL 2.320.100 2.320,100 The following additional information is to be taken into consideration: Increase in provision for doubtful debts to RM3,610 Depreciation for the year: i. il.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![TgzNDkyOTcw/a/MJU1MTU2OT94NZAX/details
PRAVUTE Peyaurd
TO0,000
Inventory-1 April 2019
Cash at bank
Capital
51,000
41,100
429,840
320.100 2.320.100
TOTAL
The following additional information is to be taken into consideration:
i. Increase in provision for doubtful debts to RM3,610
ii. Depreciation for the year:
a. Plant and machinery
b. Vehicles
ii.
RM25,700
RM15,300
Accrued expenses:
a. Rent and rates
b. Electricity and water
iv. Expenses paid in advance:
a. Salaries and wages
RM1,000
RM4,800
RM4,500
RM5,000
Inventory on 31 Mac 2020 was RM42,800.
b. Insurance
V.
Required:
a)
Prepare the Statement Profit or Loss and Other Comprehensive Income for the
year ended 31 Mac 2020.
b)
Prepare the Statement of Financial Position as at 31 Mac 2020.
РОСО
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![NDkyOTcw/a/MJU1MTU2OT94NZAX/details
4. The trial balance below was extracted from the books of CiciCaca Enterprise as at 31
Mac 2020:
Credit
RM
950,000
Debit
RM
377,000
432,000
102,000
625,000
Particulars
Purchases and Sales
Plant and machinery
Vehicles
Land and building
Accumulated depreciation:
Plant and machinery
Vehicles
Discount allowed and discount received
Returns inwards and returns outwards
Carriage inwards
Carriage outwards
Custom duties
Drawings
Provision for doubtful debts
Salaries and wages
Electricity and water
Rent and rates
Insurance
175,000
39,000
760
1,500
44,000
4,700
5,500
15,400
3,600
12,200
2,000
300,000
65,000
4,000
55,000
450,000
Mortgage on land and building
Repairs and maintenance
Commission earned
6,300
95,000
Accounts receivables
187,000
166,500
Account payable
Inventory-1 April 2019
Cash at bank
51,000
41,100
429,640
Capital
TОTAL
2.320.100 2.320.100
The following additional information is to be taken into consideration:
Increase in provision for doubtful debts to RM3,610
Depreciation for the year:
Plant and machinen
i.
il.
PM25 700
РОСО
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