Required: (a) Prepare the Trial Balance (before making the adjustments in the additional information) as at 30 June 20xi; (b) Prepare Statement of Profit or Loss (after making the adjustments in the additional information) for the year ended 30 June 20X1; and (c) Statement of Financial Position as at 30 June 20X1.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABFA1173 Principles of Accounting
Question 3
Brandon is a stationery retailer. The following are the balances extracted
from his ledger accounts as at 30 June 20X1:
Additional information:
1. Inventory at the end of the accounting year was RM6,050.
2. Non-current assets are to be depreciated as follows:
RM
RM
Inventory @ 1 July 20xo
Repairs and maintenance
Salaries and wages
Premises at 10% per annum using straight line method
Motor vehicles at 15% per annum using reducing balance method
3. Salaries and wages outstanding were RM150 and utilities paid in
5,300
Purchases
Sales
Returns inwards
70,000 Returns outwards
41,120
51,420
1,730
2,200
900
2,300
advance were RM120.
Premises at cost
4.
Bad debts to be written off amounted to RM700 and the owner has
decided to provide an allowance for doubtful debts of RM247 as at year
end.
5. Drawings made by Brandon for personal use but not recorded in the
books were as follows:
Accumulated depreciation
: Premises
Utilities
650
14,000 Drawings
56,000 Discount allowed
Discount received
2,100
Motor vehicles
650
Accumulated depreciation
: Motor vehicles
Insurance on goods purchased
2,270
15,540 Advertising
150 Duty on imports
3,170 Capital
Goods for resale amounting to RM1,300
Cash valued at RM1,050
610
520
6. An error was found in which one third of the carriage inwards should
be regarded as carriage outwards
7. Bank loan interest for the year is still outstanding as at year end
Trade receivables
82,350
Trade payables
Allowance for doubtful debts
2,560
Bad debts
400
290 Rent
1,050
1,200
3,000
720
Commission received
Bank overdraft
3,200
16,000 Cash in hand
660 Carriage outwards
Required:
5% Long term bank loan
Carriage inwards
(a) Prepare the Trial Balance (before making the adjustments in the
additional information) as at 30 June 20X1;
(b) Prepare Statement of Profit or Loss (after making the adjustments in
the additional information) for the year ended 30 Junc 20X1; and
(c) Statement of Financial Position as at 30 June 20X1.
Transcribed Image Text:ABFA1173 Principles of Accounting Question 3 Brandon is a stationery retailer. The following are the balances extracted from his ledger accounts as at 30 June 20X1: Additional information: 1. Inventory at the end of the accounting year was RM6,050. 2. Non-current assets are to be depreciated as follows: RM RM Inventory @ 1 July 20xo Repairs and maintenance Salaries and wages Premises at 10% per annum using straight line method Motor vehicles at 15% per annum using reducing balance method 3. Salaries and wages outstanding were RM150 and utilities paid in 5,300 Purchases Sales Returns inwards 70,000 Returns outwards 41,120 51,420 1,730 2,200 900 2,300 advance were RM120. Premises at cost 4. Bad debts to be written off amounted to RM700 and the owner has decided to provide an allowance for doubtful debts of RM247 as at year end. 5. Drawings made by Brandon for personal use but not recorded in the books were as follows: Accumulated depreciation : Premises Utilities 650 14,000 Drawings 56,000 Discount allowed Discount received 2,100 Motor vehicles 650 Accumulated depreciation : Motor vehicles Insurance on goods purchased 2,270 15,540 Advertising 150 Duty on imports 3,170 Capital Goods for resale amounting to RM1,300 Cash valued at RM1,050 610 520 6. An error was found in which one third of the carriage inwards should be regarded as carriage outwards 7. Bank loan interest for the year is still outstanding as at year end Trade receivables 82,350 Trade payables Allowance for doubtful debts 2,560 Bad debts 400 290 Rent 1,050 1,200 3,000 720 Commission received Bank overdraft 3,200 16,000 Cash in hand 660 Carriage outwards Required: 5% Long term bank loan Carriage inwards (a) Prepare the Trial Balance (before making the adjustments in the additional information) as at 30 June 20X1; (b) Prepare Statement of Profit or Loss (after making the adjustments in the additional information) for the year ended 30 Junc 20X1; and (c) Statement of Financial Position as at 30 June 20X1.
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