Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit Credit RM RM Inventory of raw materials 1 Jan 2020 Inventory of finished goods 1 Jan 2020 Work in progress 1 Jan 2020 21,000 38,900 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 7,000 3,500 370,000 230,000 12,000 31,000 7,500 13,700 44,000 30,000 11,500 12,000 4,200 13,400 2,300 Royalties Carriage inwards (on raw materials) Purchases of raw materials Productive machinery (cost RM280,000) Administration computers (cost RM20,000) General factory expenses Lighting Factory power Administration salaries Sales representative salaries Commission on sales Rent Insurance General administration expenses Bank charges Discount allowed 4,800 5,900 Carriage outwards Sales Account receivable and accounts payable 1,000,000 64,000 142,300 Bank 16,800 1,500 60,000 Cash Drawings Capital as at 1 Jan 2020 357,800 1,421,800 1,421,800 ТОTAL
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![1.
Jorasmi Enterprise
Trial Balance as at 31 December 2020
Particulars
Debit
Credit
RM
RM
Inventory of raw materials 1 Jan 2020
Inventory of finished goods 1 Jan 2020
Work in progress 1 Jan 2020
Wages (direct RM180,000, factory indirect RM145,000)
Royalties
Carriage inwards (on raw materials)
21,000
38,900
13,500
325,000
7,000
3,500
370,000
230,000
12,000
31,000
7,500
13,700
44,000
30,000
11,500
12,000
4,200
13,400
2,300
4,800
5,900
Purchases of raw materials
Productive machinery (cost RM280,000)
Administration computers (cost RM20,000)
General factory expenses
Lighting
Factory power
Administration salaries
Sales representative salaries
Commission on sales
Rent
Insurance
General administration expenses
Bank charges
Discount allowed
Carriage outwards
Sales
Account receivable and accounts payable
1,000,000
64,000
142,300
16,800
1,500
60,000
Bank
Cash
Drawings
Capital as at 1 Jan 2020
357,800
1,421,800 1,421,800
ТОTAL](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc480d79-a221-4140-aab7-7f8fa5083126%2Ff3157b61-d4c5-4101-a24f-9bf833a0ee70%2Fbtxdagu_processed.jpeg&w=3840&q=75)
![Additional information:
i. Inventory of raw materials RM24,000; inventory of finished goods RM40,000; work
in progress RM15,000
ii. Lighting, rent and insurance are to be apportioned; factory 5/6, administration 1/6
iii. Depreciation on productive machinery and administration computers at 10% per
annum on cost
Required:
a) Prepare statement of cost production for the year ended 31 December 2020.
b) Prepare statement of comprehensive income for the year ended 31 December 2020.
c) Prepare statement of financial position as at 31 December 2020.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc480d79-a221-4140-aab7-7f8fa5083126%2Ff3157b61-d4c5-4101-a24f-9bf833a0ee70%2Fcojwwd9_processed.jpeg&w=3840&q=75)
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