Prepare the Statement of Profit or Loss and Statement of Financial Position as at 31 August 2021.
QUESTION 2
May Li started in business running a nursery on 1 September 2020. At the end of her first year’s
trading, she has asked you to prepare her accounts for her.
Her
| DR | CR | |
| RM | RM | |
| Capital | 5000 | |
| Cash | 4321 | |
| Purchases(Food, Nappies, Clothing and etc) | 2521 | |
| Sales | 11231 | |
| Rent and Rates | 2321 | |
| Electricity | 1515 | |
| Telephone | 296 | |
| Sundry Expenses | 39 | |
| Wages | 1215 | |
| Debtors | 225 | |
| Creditors | 196 | |
| Fixtures and Fittings (Cost RM1140) | 1000 | |
| Drawings | 2974 | |
| 16427 | 16427 |
Additional information:
a) Closing stock of nursery requisite amounts to RM195.
b) Rent and rates have been paid for the period up to 30 November 2021 in advance, on 31 August
2021, of RM455.
c) An electricity bill for August 2021 has just arrived showing an amount owing of RM150. This
has not been recorded in the books.
d) Debtors include an amount of RM25 due from a family who left the area 6 months ago and
RM55 from a woman who has not paid her bill for 2 months and whose house has just been
repossessed by the bank.
e) Fixed assets should be
f) Your bill for preparing the accounts will be RM150.
g) The bank statements show that May Li has paid RM250 bank interest during the year. She has
written her
h) Some fixtures and fittings, which had cost RM200, with
September 2020 of RM140 were sold for RM150 during the year. The company policy is to
provide proportionate depreciation in the year of purchase but none in the year of sale. This has
not been recorded in the books.
Required:
a) Prepare the Statement of Profit or Loss and Statement of Financial Position as at 31 August
2021.
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