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Mr. Marvin is a merchandising company which has business operations in Ipoh, Perak. The following trial balance has been extracted from the books as at 31 July 2021. Marvin Enterprise Trial Balance as at 31 July 2021 Debit Credit Descriptions RM RM 820,000 365,000 5,300 Purchases and Sales Returns 1,200 Carriage inwards Carriage outwards 3,200 7,200 Rental 4,200 110,000 Salary Advertising Building maintenance Repair of motor vehicle Office expenses 600 150,600 30,200 43,600 Interest on loan 2,400 Bad debt 360 230,000 Building (Cost) Fixtures and fittings Accumulated depreciation as at 1 August 85,200 2020 Building Fixtures and fittings Inventory as at 1 August 2020 Account receivables and Account payables 42,000 13,200 35,000 136,840 60,200 Bank 7,650 Bank loan 10% 80,000 Сapital 192,350 1,213,150 1,213,150 Other information: 1) Closing inventories as at 31 July 2021 was estimated to be worth RM18,900. 2) Included in building maintenance expenses is a building renovation cost RM65,000. 3) Accrued Expenses: Rental RM800, Salary RM3,250. 4) Prepaid Expenses: Advertising RM575.

Mr. Marvin is a merchandising company which has business operations in Ipoh, Perak. The following trial balance has been extracted from the books as at 31 July 2021. Marvin Enterprise Trial Balance as at 31 July 2021 Debit Credit Descriptions RM RM 820,000 365,000 5,300 Purchases and Sales Returns 1,200 Carriage inwards Carriage outwards 3,200 7,200 Rental 4,200 110,000 Salary Advertising Building maintenance Repair of motor vehicle Office expenses 600 150,600 30,200 43,600 Interest on loan 2,400 Bad debt 360 230,000 Building (Cost) Fixtures and fittings Accumulated depreciation as at 1 August 85,200 2020 Building Fixtures and fittings Inventory as at 1 August 2020 Account receivables and Account payables 42,000 13,200 35,000 136,840 60,200 Bank 7,650 Bank loan 10% 80,000 Сapital 192,350 1,213,150 1,213,150 Other information: 1) Closing inventories as at 31 July 2021 was estimated to be worth RM18,900. 2) Included in building maintenance expenses is a building renovation cost RM65,000. 3) Accrued Expenses: Rental RM800, Salary RM3,250. 4) Prepaid Expenses: Advertising RM575.

FINANCIAL ACCOUNTING
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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Question 2 Mr. Marvin is a merchandising company which has business operations in Ipoh, Perak. The following trial balance has been extracted from the books as at 31 July 2021. Marvin Enterprise Trial Balance as at 31 July 2021 Debit Credit Descriptions RM RM 365,000 5,300 820,000 1,200 Purchases and Sales Returns Carriage inwards Carriage outwards 3,200 7,200 Rental 4,200 Salary Advertising Building maintenance Repair of motor vehicle Office expenses Interest on loan 110,000 600 150,600 30,200 43,600 2,400 Bad debt 360 230,000 Building (Cost) Fixtures and fittings Accumulated depreciation as at 1 August 2020 Building Fixtures and fittings Inventory as at 1 August 2020 Account receivables and Account payables 85,200 42,000 13,200 35,000 136,840 7,650 60,200 Bank 80,000 192,350 Bank loan 10% Capital 1,213,150 1,213,150 Other information: 1) Closing inventories as at 31 July 2021 was estimated to be worth RM18,900. 2) Included in building maintenance expenses is a building renovation cost RM65,000. 3) Accrued Expenses: Rental RM800, Salary RM3,250. 4) Prepaid Expenses: Advertising RM575.
Transcribed Image Text:Question 2 Mr. Marvin is a merchandising company which has business operations in Ipoh, Perak. The following trial balance has been extracted from the books as at 31 July 2021. Marvin Enterprise Trial Balance as at 31 July 2021 Debit Credit Descriptions RM RM 365,000 5,300 820,000 1,200 Purchases and Sales Returns Carriage inwards Carriage outwards 3,200 7,200 Rental 4,200 Salary Advertising Building maintenance Repair of motor vehicle Office expenses Interest on loan 110,000 600 150,600 30,200 43,600 2,400 Bad debt 360 230,000 Building (Cost) Fixtures and fittings Accumulated depreciation as at 1 August 2020 Building Fixtures and fittings Inventory as at 1 August 2020 Account receivables and Account payables 85,200 42,000 13,200 35,000 136,840 7,650 60,200 Bank 80,000 192,350 Bank loan 10% Capital 1,213,150 1,213,150 Other information: 1) Closing inventories as at 31 July 2021 was estimated to be worth RM18,900. 2) Included in building maintenance expenses is a building renovation cost RM65,000. 3) Accrued Expenses: Rental RM800, Salary RM3,250. 4) Prepaid Expenses: Advertising RM575.
5) Annual depreciation for the non-current assets as follow:- Fixtures and fittings Building 10% - Reducing balance method 2% - Straight line method 6) During the year, the proprietor has taken goods costing RM2,350 and give to his mother. He also took cash of RM800 per month from the business for his personal consumption. Cash drawings had been recorded in a Salary Account. 7) It has been agreed that further debts amounting to RM440 are to be written off against specific customers, and the closing provision for doubtful debts is to be adjusted to 2% of the revised account receivables figure. 8) The bank loan carries an interest rate of 10% per annum. It is the company policy to pay interest charges at the end of every year. Required: a) Prepare Marvin Enterprise's Statement of Profit or Loss (post adjustments) for the year ended 31 July 2021. b) Prepare Marvin Enterprise's Statement of Financial Position (post adjustments) as at 31 July 2021.
Transcribed Image Text:5) Annual depreciation for the non-current assets as follow:- Fixtures and fittings Building 10% - Reducing balance method 2% - Straight line method 6) During the year, the proprietor has taken goods costing RM2,350 and give to his mother. He also took cash of RM800 per month from the business for his personal consumption. Cash drawings had been recorded in a Salary Account. 7) It has been agreed that further debts amounting to RM440 are to be written off against specific customers, and the closing provision for doubtful debts is to be adjusted to 2% of the revised account receivables figure. 8) The bank loan carries an interest rate of 10% per annum. It is the company policy to pay interest charges at the end of every year. Required: a) Prepare Marvin Enterprise's Statement of Profit or Loss (post adjustments) for the year ended 31 July 2021. b) Prepare Marvin Enterprise's Statement of Financial Position (post adjustments) as at 31 July 2021.
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