Building Inventory Returns Bank Rental Salary Drawings Insurance Capital Trial balance as at 31 December 2012 RM 50,000 17,000 400 Assessment rate Account receivable and Accounts payable Sales and Purchases Allowance for Doubtful Debt Stationeries paid Advertising 6,000 360 1,200 3,000 9,250 56,000 420 2,000 145,630 1. Closing inventory is RM15,000 2. Bad debt is RM50. Allowance for doubtful debts is 2% on accounts receivable. 3. Accrued assessment rate is RM600. 4. Rental received each month is RM300 per month RM 1,980 3,200 58,370 7,000 75,000 80 145,630 Prepare: a) Statement of Comprehensive Income for the year ending 31 December 2012 b) Statement of Financial Position as at 31 December 2012
Building Inventory Returns Bank Rental Salary Drawings Insurance Capital Trial balance as at 31 December 2012 RM 50,000 17,000 400 Assessment rate Account receivable and Accounts payable Sales and Purchases Allowance for Doubtful Debt Stationeries paid Advertising 6,000 360 1,200 3,000 9,250 56,000 420 2,000 145,630 1. Closing inventory is RM15,000 2. Bad debt is RM50. Allowance for doubtful debts is 2% on accounts receivable. 3. Accrued assessment rate is RM600. 4. Rental received each month is RM300 per month RM 1,980 3,200 58,370 7,000 75,000 80 145,630 Prepare: a) Statement of Comprehensive Income for the year ending 31 December 2012 b) Statement of Financial Position as at 31 December 2012
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:Building
Inventory
Returns
Bank
Rental
Salary
Drawings
Insurance
Capital
Trial balance as at 31 December 2012
RM
50,000
17,000
400
Assessment rate
Account receivable and Accounts payable
Sales and Purchases
Allowance for Doubtful Debt
Stationeries paid
Advertising
6,000
360
1,200
3,000
9,250
56,000
420
2,000
145,630
1. Closing inventory is RM15,000
2. Bad debt is RM50. Allowance for doubtful debts is 2% on accounts receivable.
3. Accrued assessment rate is RM600.
4. Rental received each month is RM300 per month
RM
1,980
3,200
58,370
7,000
75,000
80
Prepare:
a) Statement of Comprehensive Income for the year ending 31 December 2012
b) Statement of Financial Position as at 31 December 2012
145,630
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