QUESTION 4 Mr. Eddy is the sole proprietor of Eddyra Trading. The following information was obtained from the book of his business on 31 December 2020. Trial Balance as at 31 December 2020 Dr (RM) 30000 Cr (RM) Motor Vehicle Machineries 8500 Building Opening Inventory 39000 6500 Accounts receivable 8000 Accounts payable Provision for depreciation: Motor vehicle Provision for depreciation: Machineries Allowance for Doubtful Debts 11000 3000 1500 200 Cash 14000 Bank 4000 Salary 1200 Return Inwards 700 Discounts Allowed 500 Telephone bill 350 Rent 600 Purchase 4000 Return Outwards 900 Discounts Received 800 Sales 10000 Capital 81950 TOTAL 113350 113350 Additional information: (i) Closing inventory at the cost price of RM 8,000 and at the market price of RM 6,800. (ii) The depreciation rate for machineries 5% on cost and for motor vehicle is 10%, using straight line method. (iii) The allowance for doubtful debts is to be adjusted at 3% on account receivable. (iv) Accrued telephone bill is RM50.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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b) Construct Statement of Financial Position as at 31 December 2020.

QUESTION 4
Mr. Eddy is the sole proprietor of Eddyra Trading. The following information was
obtained from the book of his business on 31 December 2020.
Trial Balance as at 31 December 2020
Dr (RM)
Cr (RM)
Motor Vehicle
30000
Machineries
8500
Building
Opening Inventory
39000
6500
Accounts receivable
8000
Accounts payable
Provision for depreciation: Motor vehicle
Provision for depreciation: Machineries
11000
3000
1500
Allowance for Doubtful Debts
200
Cash
14000
Bank
4000
Salary
1200
Return Inwards
700
Discounts Allowed
500
Telephone bill
350
Rent
600
Purchase
4000
Return Outwards
900
Discounts Received
800
Sales
10000
Сapital
81950
ΤΟΤAL
113350
113350
Additional information:
(i)
Closing inventory at the cost price of RM 8,000 and at the market price of
RM 6,800.
(ii)
The depreciation rate for machineries 5% on cost and for motor vehicle is
10%, using straight line method.
(iii)
The allowance for doubtful debts is to be adjusted at 3% on account
receivable.
(iv)
Accrued telephone bill is RM50.
O O
|l>
Transcribed Image Text:QUESTION 4 Mr. Eddy is the sole proprietor of Eddyra Trading. The following information was obtained from the book of his business on 31 December 2020. Trial Balance as at 31 December 2020 Dr (RM) Cr (RM) Motor Vehicle 30000 Machineries 8500 Building Opening Inventory 39000 6500 Accounts receivable 8000 Accounts payable Provision for depreciation: Motor vehicle Provision for depreciation: Machineries 11000 3000 1500 Allowance for Doubtful Debts 200 Cash 14000 Bank 4000 Salary 1200 Return Inwards 700 Discounts Allowed 500 Telephone bill 350 Rent 600 Purchase 4000 Return Outwards 900 Discounts Received 800 Sales 10000 Сapital 81950 ΤΟΤAL 113350 113350 Additional information: (i) Closing inventory at the cost price of RM 8,000 and at the market price of RM 6,800. (ii) The depreciation rate for machineries 5% on cost and for motor vehicle is 10%, using straight line method. (iii) The allowance for doubtful debts is to be adjusted at 3% on account receivable. (iv) Accrued telephone bill is RM50. O O |l>
(v)
Rent paid is RM45 per month.
Transcribed Image Text:(v) Rent paid is RM45 per month.
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