production for the year ended 31 December 2 prehensive income for the year ended 31 Dece cial position as at 31 December 2020. business making and selling children's toys. I from her books on 31 December 2020:
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
![i. Inventory at 31 December 2020:
RM14,510
a. Raw materials
b. Finished goods
ii. Depreciate machinery RM3,000; office equipment RM6,000; van RM1,200
ii. Manufacturing wages due but unpaid at 31 December 2020 RM550; office rent
prepaid RM140
RM44,490
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.
5. Jojomat Ltd owns a small business making and selling children's toys. The following
trial balance was extracted from her books on 31 December 2020:
Credit
RM
Particulars
Debit
RM
Capital
Drawings
Sales
Inventory at 1 January 2020:
Raw materials
Finished goods
Purchased of raw materials
Carriage inwards
Factory wages
Office salaries
Jojomat : Salary and expenses
General expenses:
Factory
Office
Lighting
Rent
Insurance
Advertising
Bad debts
Discount received
15,000
2,000
90,000
3,400
6,100
18,000
800
18,500
16,900
10,400
1,200
750
2,500
3,750
950
1,400
650
1,600
Carriage outwards
Plant and machinery, a cost less depreciation
Car, at cost less depreciation
Bank
Cash in hand
375
9,100
4,200
3,600
325
7,700 6,000
112,600 112,600
Account receivable and account payable
TOTAL
Additional information:
Inventory at 31 December 2020:
a. Raw materials
RM2,900
b. Finished goods RM8,200
i. Depreciation for the year is to be charged as follows:
a. Plant and machinery
b. Car
RM1,500
RM500
At 31 December 2020 insurance paid in advance was RM150 and office general
expenses unpaid were RM75
iv.
i.
Lighting and rent are to be apportioned :4/5 Factory, 1/5 Office
Insurance are to be apportioned: % Factory % Office
vi. Jojo is the business sales person and her salary and expenses are to be treated as
a selling expense. She has sole use of a business car.
V.
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%2Faa85cbe7-9bb4-4c55-bff1-111bdf1b2ec4%2Ff2b248e9-db7e-46b5-86b9-8114ea25bffe%2F99zv8f_processed.jpeg&w=3840&q=75)
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