Chapter : Adjustment financial statements D © T5. The following trial balance was extracted from the books of Fasuha Trading as at 31December 2020.ParticularsDebitCreditRMRMOffice equipmentMotor vehiclesFurnitureAccumulated depreciation as at 1 January 2020:Office equipmentMotor vehicles12,2509,1503,6002,4501,3731,060FurnitureAccount receivables and account payablesCapital6% loan to RaraPurchases and sales6,8603,63229,6082,50019,110 31,560Discount215175AdvertisingCash in handProvision for doubtful debtsCommission received6% loan from Afina Bank (taken from 1 May 2020)4,2501,6303007408,000700RentDrawingsMaintenance and petrolStaff's wagesInsuranceCash at bankCarriage inwardsCarriage outwardsTelephone and electricityDuties on purchasesReturnsInventory as at 1 January 20201,2001,9001,2604,0051,0005,2702102506109151101123,41579,710 79,710TOTALThe following adjustment are to be taken into account:a. Inventory as at 31 December 2020 was valued at RM2,600b. The interest on the loan taken from Afina bank was not recorded in the accounts.c. Prepaid RM300 of the insurance premiumsd. Prepaid RM125 of the telephone and electricity bills.e. Depreciation was provided using the rates as follows:i. Office equipmentii. Motor vehiclesii. Furniture20% p.a on carrying value15% p.a on cost10% p.a on costf. Bad debts of RM110 to be writg. The provision for doubtful deats was to be adjusted to 2.5% of the remainingaccount receivablesh. Fasuha had drawn RM150 cash from the business to spend on his son's birthdRequired:Add a caption. E © T OCommission received6% loan from Afina Bank (taken from 1 May 2020)7408,000Rent1,2001,9001,2604,0051,0005,270210700DrawingsMaintenance and petrolStaff's wagesInsuranceCash at bankCarriage inwardsCarriage outwardsTelephone and electricityDuties on purchases250610915Returns110112Inventory as at 1 January 2020TOTAL3,41579.710 79.710The following adjustment are to be taken into account:a. Inventory as at 31 December 2020 was valued at RM2,600b. The interest on the loan taken from Afina bank was not recorded in the accounts.c. Prepaid RM300 of the insurance premiumsd. Prepaid RM125 of the telephone and electricity bills.e. Depreciation was provided using the rates as follows:i. Office equipment20% p.a on carrying value15% p.a on cost10% p.a on costii. Motor vehiclesii. Furnituref. Bad debts of RM110 to be written offg. The provision for doubtful debts was to be adjusted to 2.5% of the remainingaccount receivablesh. Fasuha had drawn RM150 cash from the business to spend on his son's birthday.Required:a) Prepare the Statement Profit or Loss and Other Comprehensive Income for theyear ended 31 December 2020.b) Prepare the Statement of Financial Position as at 31 December 2020FiltersAdd a caption.

The trial balance is used to prepare Profit or loss and balance sheet for the business. These…

5. The following trial balance was extracted from the books of Fasuha Trading as at 31 December 2020. Particulars Debit Credit RM RM Office equipment Motor vehicles Furniture Accumulated depreciation as at 1 January 2020: Office equipment Motor vehicles 12,250 9,150 3,600 Furniture Account receivables and account payables Capital 2,450 1,373 1,060 3,632 29,608 6,860 6% loan to Rara 2.500 Purchases and sales 19,110 31,560 Discount 215 175 4,250 1,630 Advertising Cash in hand Provision for doubtful debts Commission received 6% loan from Afina Bank (taken from 1 May 2020) 300 740 8,000 700 1,200 1,900 1,260 4,005 1,000 5,270 210 Rent Drawings Maintenance and petrol Staff's wages Insurance Cash at bank Carriage inwards Carriage outwards Telephone and electricity Duties on purchases 250 610 915 Returns 110 112 Inventory as at 1 January 2020 TOTAL 3,415 79.710 79.710 The following adjustment are to be taken into account: a. Inventory as at 31 December 2020 was valued at RM2,600 b. The interest on the loan taken from Afina bank was not recorded in the accounts. c. Prepaid RM300 of the insurance premiums d. Prepaid RM125 of the telephone and electricity bills. e. Depreciation was provided using the rates as follows: i. Office equipment ii. Motor vehicles ii. Furniture 20% p.a on carrying value 15% p.a on cost 10% p.a on cost 1. Bad debts of RM110 to be writ er ers g. The provision for doubtful dests was to be adjusted to 2.5% of the remaining account receivables h. Fasuha had drawn RM150 cash from the business to spend on his son's birthd

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q