The following balances have been extracted from the books of Ambrosia Berhad as at 31December 2020.DebitCreditRMRMLand540,000BuildingMachineryAccumulated Depreciation:BuildingMachinery6% Loan from Maybank, 10 Years144,00036,00043,2007,200210,000Bank overdraft32,220Cash29,474Purchases and sales264,000588,000Discount allowed27,000Salaries expenses90,00043,200Insurance expenseOffice expenseTelephone and internet chargesRetained earnings, 1 Jan5,2203,000119,234Dividend36,000Share capital-OrdinarySuppliesCarriage outwards420,00066,00029,760Return inwards1,200Account receivable73,680Inventories, 1 Jan70,320Account payable39,0001,458,8541,458,854Additional information:1. Closing inventories as at 31 December 2020 was valued at RM75,000.2. Interest on loan has been accrued for the year ended. The loan was taken on 1 April 2020.3. Depreciation was to be provided:Machinery5% straight line basis.Building10% on reducing balance method.4. Insurance prepaid was RM6,000.5. Included in the carriage outwards is carriage inwards amounting to RM8,452. 6. The record showed that the value of supplies on hand as at 31 December 2020 wasRM45,330.7. Import duty of the goods purchased from a supplier in China amounting to RM4,280 hasbeen paid in 2020 however, the bookkeeper has not recorded it yet in the relevant accounts.8. A payment of RM1,670 for telephone and internet charges was wrongly entered as a debitto office expense by the bookkeeper.Required:a) Prepare the statement of profit or loss for the year ended 31 December 2020.b) Prepare the retained earnings statement for the year ended 31 December 2020.c) Prepare the statement of financial position as at 31 December 2020.

Name: The following balances have been extracted from the books of Ambrosia
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Description: The following balances have been extracted from the books of Ambrosia Berhad as at 31December 2020.DebitCreditRMRMLand540,000BuildingMachineryAccumulated Depreciation:BuildingMachinery6% Loan from Maybank, 10 Years144,00036,00043,2007,200210,000Bank

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Business

Accounting

Required: a) Prepare the statement of profit or loss for the year ended 31 December 2020. b) Prepare the retained earnings statement for the year ended 31 December 2020. c) Prepare the statement of financial position as at 31 December 2020.

Required: a) Prepare the statement of profit or loss for the year ended 31 December 2020. b) Prepare the retained earnings statement for the year ended 31 December 2020. c) Prepare the statement of financial position as at 31 December 2020.

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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