Open with Google DocsThe following trial balance was extracted from the books of Fasuha Trading as at 31December 2020.DebitRMParticularsCreditRM12,2509,1503,600Office equipmentMotor vehiclesFumitureAccumulated depreciation as at 1 January 2020:Office equipmentMotor vehiclesFumiture2,4501,3731,0603,63229,6086,860Account receivables and account payablesСapital6% loan to RaraPurchases and salesDiscountAdvertisingCash in handProvision for doubtful debts2,50019,110 31,5602151754,2501,6303007408,000700Commission received6% loan from Afina Bank (taken from 1 May 2020)1,2001,9001,2604,0051,0005,270210250610915110RentDrawingsMaintenance and petrolStaff's wagesInsuranceCash at bankCarriage inwardsCarriage outwardsTelephone and electricityDuties on purchasesReturns1123.415Inventory as at 1 January 202079.71079.710TOTALPage718РОСОSHOT ON POCO F2 PRO The 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 equipmentil. Motor vehiclesii. Furniture20% p.a on carrying value15% p.a on cost10% p.a on costf. 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 2020PageBIBРОСОSHOT ON POCO F2 PRO

Financial statement is prepared from the trial balance which include :- Profit and loss and…

he 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 il. Motor vehicles iii. 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

he 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 il. Motor vehicles iii. 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

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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