equired:  b) Statement of Financial Position as at 31 October 2020

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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  1. Mr Jamil, a trader, completed a year’s trading on 31 October 2020. The following  balances were extracted from the business records: 

Particulars 

Debit 

RM

Credit 

RM

Purchases and Sales 

52,650 

160,720

Sales returns and purchases returns 

340 

1,213

Land 

100,000

 

Machines 

140,000

 

Office equipment 

30,000

 

Vehicles 

75,000

 

Provision for depreciation at 1 November 2019:  Machines 

 Office equipment 

 Vehicles 

 

28,000 

16,800 

28,000

Office expenses 

11,500

 

Cash in hand 

175

 

Selling expenses 

8,820

 

Drawings 

6,000

 

Wages 

48,000

 

Stock at 1 Nov 2019 

2,500

 

Provision for doubtful debts as at 1 Nov 2019 

 

650

Debtors and creditors 

14,500 

8,600

Repairs 

2,370

 

Bad debts 

240

 

Jamil – Capital account as at 1 Nov 2019 

 

251,512

Cash at bank 

3,400

 

TOTAL 

495,495 

495,495



Mr Jamil also provides the following information at 31 October 2020: i. Stock was valued at RM2,750 

  1. The provision for doubtful debts should be maintained at 5% of debtors. iii. Wages accrued amounted to RM1,500 
  2. Office expenses prepaid amounted to RM342
  3. Mr. Jamil had taken RM1,200 worth of goods from stock for personal use during  the year. This has not been recorded. 
  4. Depreciation policies were: 

Machines - 20% straight line method 

Office equipment - 20% straight line method 

Vehicles - 30% reducing balance method 

Required: 

  1. b) Statement of Financial Position as at 31 October 2020
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