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5. The following trial balance was extracted from the books of Fasuha Trading as at 31 December 2020. Particulars Credit RM Debit RM 12,250 9,150 3,600 Office equipment Motor vehicles Furniture Accumulated depreciation as at 1 January 2020: Office equipment Motor vehicles Furniture Account receivables and account payables |Capital | 6% loan to Rara Purchases and sales Discount Advertising |Cash in hand Provision for doubtful debts Commission received 6% loan from Afina Bank (taken from 1 May 2020) Rent Drawings Maintenance and petrol Staff's wages Insurance Cash at bank Carriage inwards Carriage outwards Telephone and electricity Duties on purchases 2,450 1,373 1,060 3,632 29,608 6,860 2,500 19,110 31,560 215 4,250 1,630 175 300 740 8,000 700 1,200 1,900 1,260 4,005 1,000 5,270 210 250 610 915 110 Returns 112 Inventory as at 1 January 2020 TOTAL 3,415 79.710 79.710

5. The following trial balance was extracted from the books of Fasuha Trading as at 31 December 2020. Particulars Credit RM Debit RM 12,250 9,150 3,600 Office equipment Motor vehicles Furniture Accumulated depreciation as at 1 January 2020: Office equipment Motor vehicles Furniture Account receivables and account payables |Capital | 6% loan to Rara Purchases and sales Discount Advertising |Cash in hand Provision for doubtful debts Commission received 6% loan from Afina Bank (taken from 1 May 2020) Rent Drawings Maintenance and petrol Staff's wages Insurance Cash at bank Carriage inwards Carriage outwards Telephone and electricity Duties on purchases 2,450 1,373 1,060 3,632 29,608 6,860 2,500 19,110 31,560 215 4,250 1,630 175 300 740 8,000 700 1,200 1,900 1,260 4,005 1,000 5,270 210 250 610 915 110 Returns 112 Inventory as at 1 January 2020 TOTAL 3,415 79.710 79.710

FINANCIAL ACCOUNTING
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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Chapter: Adjusted Financial Statements

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 i. Furniture 20% p.a on carrying value 15% p.a on cost 10% p.a on cost f. Bad debts of RM110 to be written off g. The provision for doubtful debts 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 birthday. Required: a) Prepare the Statement Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020. b) Prepare the Statement of Financial Position as at 31 December 2020
Transcribed Image Text: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 i. Furniture 20% p.a on carrying value 15% p.a on cost 10% p.a on cost f. Bad debts of RM110 to be written off g. The provision for doubtful debts 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 birthday. Required: a) Prepare the Statement Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020. b) Prepare the Statement of Financial Position as at 31 December 2020
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 Furniture Account receivables and account payables Capital 6% loan to Rara Purchases and sales Discount Advertising Cash in hand Provision for doubtful debts Commission received 6% loan from Afina Bank (taken from 1 May 2020) Rent Drawings Maintenance and petrol Staff's wages 12,250 9,150 3,600 2,450 1,373 1,060 3,632 29,608 6,860 2,500 19,110 31,560 215 175 4,250 1,630 300 740 8,000 1,200 1,900 1,260 700 4,005 Insurance 1,000 Cash at bank |Carriage inwards Carriage outwards Telephone and electricity Duties on purchases Returns Inventory as at 1 January 2020 5,270 210 250 610 915 110 112 3,415 79.710 79,710 TOTAL
Transcribed Image Text: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 Furniture Account receivables and account payables Capital 6% loan to Rara Purchases and sales Discount Advertising Cash in hand Provision for doubtful debts Commission received 6% loan from Afina Bank (taken from 1 May 2020) Rent Drawings Maintenance and petrol Staff's wages 12,250 9,150 3,600 2,450 1,373 1,060 3,632 29,608 6,860 2,500 19,110 31,560 215 175 4,250 1,630 300 740 8,000 1,200 1,900 1,260 700 4,005 Insurance 1,000 Cash at bank |Carriage inwards Carriage outwards Telephone and electricity Duties on purchases Returns Inventory as at 1 January 2020 5,270 210 250 610 915 110 112 3,415 79.710 79,710 TOTAL
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