Additional information as at 31 Mac 2020: i. Stock on hand was valued at $8,800 ii. Rent and rates prepaid $1,200 iii. Wages and salaries accrued $1,750 iv. Depreciation is to be provided as follows: a. Motor vehicles - 50 % reducing balance method b. Office equipment - 20% straight line method v. The doubtful debts provision is to be maintained at 2% of closing debtors. Required: Statement of Financial Position as at 31 March 2004
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.
Additional information as at 31 Mac 2020:
i. Stock on hand was valued at $8,800
ii. Rent and rates prepaid $1,200
iii. Wages and salaries accrued $1,750
iv.
a. Motor vehicles - 50 %
b. Office equipment - 20%
v. The doubtful debts provision is to be maintained at 2% of closing debtors.
Required:
PLEASE ANSWER LIKE THIS FORMAT
![Statement of Financial Position as at 31 March 20X3
RM
RM
RM
Cost Acc.dep
Carrying
Value
Non-Current Assets
Office equipment
Fixtures and fittings
Delivery van
Current Assets
Inventory
Accounts receivable
(-) Allowance for doubtful debt
Cash at bank
Cash in hand
Prepald rent
Owner's Equity
Capital
(-) Net loss
() Drawings
Non-Current Liability
Loan from Bank Rakyat
Current Liabilities
Accounts payable
Accrued salary
Accrued interest](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4093f023-37d4-44ed-a4db-7d74a1d34484%2F2775234a-a590-442c-8225-bf8637a3abac%2Fcumxd3w_processed.png&w=3840&q=75)
![The following Trial Balance was extracted from the books of Steven Western at 31 March 2004
Dr
Cr
Capital
Carriage in
Carriage out
Purchases
Office equipment
Motor vehicle
63,030
1.620
800
145,800
10,000
8.500
Sales
232.950
68.000
3,600
8.400
4300
9,600
3,180
28,400
Wages and salaries
Renit and rates
Lighting and heating
Vehicle running costs
Telephone expenses
General office expenses
Debtors
Creditors
16,440
Provision for Depreciation
Motor vehicle
4,250
Ofice equipment
Provision for Doubtful Debts
4,000
500
Drawings
13.570
Bank
Cash
Stock (1 April 2003)
Returns inwards
6.200
300
8.000
3.800
Returns outwards
324.070
2.900
324.070](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4093f023-37d4-44ed-a4db-7d74a1d34484%2F2775234a-a590-442c-8225-bf8637a3abac%2Fuzuobjh_processed.png&w=3840&q=75)
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