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Question 1 The management of Farzana Enterprise has asked you to prepare their financial statements for the year ended 30 June 2022. The company's trial balance as at that date is as follows: Trial Balance of Farzana Enterprise as at 30 June 2022 Debit (RM) 320,000 45,000 151,000 7,500 Purchases and sales Discount allowed Salaries expenses Bad debts Insurance Interest expenses Telephone and internet charges Rental and maintenance General expenses Capital Tools Carriage outwards Carriage inwards Return inwards Investments Land Building Furniture and Fixtures (RM) Accumulated depreciation - Building Accumulated depreciation - Furniture and Fixtures 6% Loan from Ambank, 15 years Bank overdraft Cash Account Receivables Inventories, 1 July Account Payables Drawings 27,000 7,875 3,750 30,000 41,850 82,500 30,000 8,500 1,500 175,000 400,000 180,000 45,000 27,000 92,100 87,900 45,000 Credit 896,625 1. Furniture and Fixtures 10% on cost, yearly basis 2. Building 15% on Net Book Value, yearly basis 5. Additional bad debt of RM800 was to be written off. 500,000 57,000 9,600 262,500 34,000 48,750 1,808,475 1,808,475 Additional Information: 1. Inventory as at 30 June 2022 was RM55,000 2. Included in the carriage outward is carriage inwards amounting to RM500. 3. The owner had taken RM800 of goods for her personal use 4. Depreciation is to be provided as follows: 6. Allowance for doubtful debt is to be adjusted to 2% on the outstanding account receivables 7. The company has not yet paid half of the interest on loan for the year end 2022. 8. The expenses below were still unpaid on 30 June 2022: 1. Telephone and internet RM400 2. General expenses RM500 9. The Insurance expense was paid for the period from 1 December 2021 to 30 November 2022 Note: Show all relevant workings and journal entries for adjustments. Required: A. Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2022 B. Statement of Financial Position as at 30 June 2022

Question 1 The management of Farzana Enterprise has asked you to prepare their financial statements for the year ended 30 June 2022. The company's trial balance as at that date is as follows: Trial Balance of Farzana Enterprise as at 30 June 2022 Debit (RM) 320,000 45,000 151,000 7,500 Purchases and sales Discount allowed Salaries expenses Bad debts Insurance Interest expenses Telephone and internet charges Rental and maintenance General expenses Capital Tools Carriage outwards Carriage inwards Return inwards Investments Land Building Furniture and Fixtures (RM) Accumulated depreciation - Building Accumulated depreciation - Furniture and Fixtures 6% Loan from Ambank, 15 years Bank overdraft Cash Account Receivables Inventories, 1 July Account Payables Drawings 27,000 7,875 3,750 30,000 41,850 82,500 30,000 8,500 1,500 175,000 400,000 180,000 45,000 27,000 92,100 87,900 45,000 Credit 896,625 1. Furniture and Fixtures 10% on cost, yearly basis 2. Building 15% on Net Book Value, yearly basis 5. Additional bad debt of RM800 was to be written off. 500,000 57,000 9,600 262,500 34,000 48,750 1,808,475 1,808,475 Additional Information: 1. Inventory as at 30 June 2022 was RM55,000 2. Included in the carriage outward is carriage inwards amounting to RM500. 3. The owner had taken RM800 of goods for her personal use 4. Depreciation is to be provided as follows: 6. Allowance for doubtful debt is to be adjusted to 2% on the outstanding account receivables 7. The company has not yet paid half of the interest on loan for the year end 2022. 8. The expenses below were still unpaid on 30 June 2022: 1. Telephone and internet RM400 2. General expenses RM500 9. The Insurance expense was paid for the period from 1 December 2021 to 30 November 2022 Note: Show all relevant workings and journal entries for adjustments. Required: A. Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2022 B. Statement of Financial Position as at 30 June 2022

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 1 The management of Farzana Enterprise has asked you to prepare their financial statements for the year ended 30 June 2022. The company's trial balance as at that date is as follows: Trial Balance of Farzana Enterprise as at 30 June 2022 Purchases and sales Discount allowed Salaries expenses Bad debts Insurance Interest expenses Telephone and internet charges Rental and maintenance General expenses Capital Tools Carriage outwards Carriage inwards Return inwards Investments Land Building Furniture and Fixtures Accumulated depreciation - Building Accumulated depreciation - Furniture and Fixtures 6% Loan from Ambank, 15 years Bank overdraft Cash (RM) Account Receivables Inventories, 1 July Account Payables Drawings Debit (RM) 320,000 45,000 151,000 7,500 27,000 7,875 3,750 30,000 41,850 82,500 30,000 8,500 1,500 175,000 400,000 180,000 45,000 27,000 92,100 87,900 45,000 Credit 896,625 1. Furniture and Fixtures 10% on cost, yearly basis 2. Building 15% on Net Book Value, yearly basis 5. Additional bad debt of RM800 was to be written off. 500,000 57,000 9,600 262,500 34,000 48,750 1,808,475 1,808,475 Additional Information: 1. Inventory as at 30 June 2022 was RM55,000 2. Included in the carriage outward is carriage inwards amounting to RM500. 3. The owner had taken RM800 of goods for her personal use 4. Depreciation is to be provided as follows: 6. Allowance for doubtful debt is to be adjusted to 2% on the outstanding account receivables 7. The company has not yet paid half of the interest on loan for the year end 2022. 8. The expenses below were still unpaid on 30 June 2022: 1. Telephone and internet RM400 2. General expenses RM500 9. The Insurance expense was paid for the period from 1 December 2021 to 30 November 2022 Note: Show all relevant workings and journal entries for adjustments. Required: A. Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2022 B. Statement of Financial Position as at 30 June 2022
Transcribed Image Text:Question 1 The management of Farzana Enterprise has asked you to prepare their financial statements for the year ended 30 June 2022. The company's trial balance as at that date is as follows: Trial Balance of Farzana Enterprise as at 30 June 2022 Purchases and sales Discount allowed Salaries expenses Bad debts Insurance Interest expenses Telephone and internet charges Rental and maintenance General expenses Capital Tools Carriage outwards Carriage inwards Return inwards Investments Land Building Furniture and Fixtures Accumulated depreciation - Building Accumulated depreciation - Furniture and Fixtures 6% Loan from Ambank, 15 years Bank overdraft Cash (RM) Account Receivables Inventories, 1 July Account Payables Drawings Debit (RM) 320,000 45,000 151,000 7,500 27,000 7,875 3,750 30,000 41,850 82,500 30,000 8,500 1,500 175,000 400,000 180,000 45,000 27,000 92,100 87,900 45,000 Credit 896,625 1. Furniture and Fixtures 10% on cost, yearly basis 2. Building 15% on Net Book Value, yearly basis 5. Additional bad debt of RM800 was to be written off. 500,000 57,000 9,600 262,500 34,000 48,750 1,808,475 1,808,475 Additional Information: 1. Inventory as at 30 June 2022 was RM55,000 2. Included in the carriage outward is carriage inwards amounting to RM500. 3. The owner had taken RM800 of goods for her personal use 4. Depreciation is to be provided as follows: 6. Allowance for doubtful debt is to be adjusted to 2% on the outstanding account receivables 7. The company has not yet paid half of the interest on loan for the year end 2022. 8. The expenses below were still unpaid on 30 June 2022: 1. Telephone and internet RM400 2. General expenses RM500 9. The Insurance expense was paid for the period from 1 December 2021 to 30 November 2022 Note: Show all relevant workings and journal entries for adjustments. Required: A. Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2022 B. Statement of Financial Position as at 30 June 2022
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1:51 Back FA - INDIVIDUAL ASSIG... Question 2 Below are the financial statements for the year ended 31 December 2022 for Zazau Zezz Enterprise Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2022 2022 2021 RM RM 550,000 400,000 Sales Revenue Less: Cost of Goods Sold-180,000-120,000 Gross Profit Add: Other Income Less: Expenses: Operating expenses Administrative costs Profit for the year Non-current Assets Current Assets Inventories Accounts Receivable Bank Cash Total assets Statement of Financial Position as at 31st December 2022 Current Liabilities Accounts Payable Accruals 370,000 270,000 25,000 20,000 -175,000-120,000 years. -25,000 -8,000 195,000 142,000 2022 2021 RM RM 282,500 155,000 60,000 45,000 93,500 30,000 Owner's Equities Capital at beginning of the year 198,000 96,000 Profit for the year 195,000 142,000 Less: Drawings -10,000-30,000 Capital at end of the year 383,000 208,000 Question 5 42,000 27,500 20,000 16,000 498,000 273,500 85,000 38,500 Short term trade financing loan 25,000 20,000 Total Equities and Liabilities 498,000 273,500 5,000 7,000 Required: (a) Calculate the following ratios for both financial a. Gross profit margin b. Net profit margin c. Inventory turnover ratio d. Current ratio e. Quick ratio or Acid-test ratio f. Average Collection Period 55 (b) Provide comments on the results of the ratios for both financial years. Note: Show all relevant workings
Transcribed Image Text:1:51 Back FA - INDIVIDUAL ASSIG... Question 2 Below are the financial statements for the year ended 31 December 2022 for Zazau Zezz Enterprise Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2022 2022 2021 RM RM 550,000 400,000 Sales Revenue Less: Cost of Goods Sold-180,000-120,000 Gross Profit Add: Other Income Less: Expenses: Operating expenses Administrative costs Profit for the year Non-current Assets Current Assets Inventories Accounts Receivable Bank Cash Total assets Statement of Financial Position as at 31st December 2022 Current Liabilities Accounts Payable Accruals 370,000 270,000 25,000 20,000 -175,000-120,000 years. -25,000 -8,000 195,000 142,000 2022 2021 RM RM 282,500 155,000 60,000 45,000 93,500 30,000 Owner's Equities Capital at beginning of the year 198,000 96,000 Profit for the year 195,000 142,000 Less: Drawings -10,000-30,000 Capital at end of the year 383,000 208,000 Question 5 42,000 27,500 20,000 16,000 498,000 273,500 85,000 38,500 Short term trade financing loan 25,000 20,000 Total Equities and Liabilities 498,000 273,500 5,000 7,000 Required: (a) Calculate the following ratios for both financial a. Gross profit margin b. Net profit margin c. Inventory turnover ratio d. Current ratio e. Quick ratio or Acid-test ratio f. Average Collection Period 55 (b) Provide comments on the results of the ratios for both financial years. Note: Show all relevant workings
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