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Required: i. Prepare the Statement of Profit or Loss and the Statement of Financial Position as at 31 December 2021. ii. Under the accrual basis accounting, adjustments for accruals and prepayments need to be considered. Explain the term accrued expenses.

Required: i. Prepare the Statement of Profit or Loss and the Statement of Financial Position as at 31 December 2021. ii. Under the accrual basis accounting, adjustments for accruals and prepayments need to be considered. Explain the term accrued expenses.

FINANCIAL ACCOUNTING
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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The following matters are to be taken into account: 1. No record was made by Shahnaz on cash withdrawals amounting to RM500 for personal use. 2. Annual depreciation for freehold land and buildings, fixtures and fittings are RM12,520 and RM17,000 respectively. The annual depreciation for motor van is RM15,000. 3. Alima Boutique issued a debit note amounting of RM2,300 to a supplier. No record has been made in the business book of accounts. 4. Utility expenses were paid in advance at the amount of RM250. 5. The salaries for the month of November and December 2021 amounting to RM10,500 was paid in January 2022. 6. The business has received RM900 of commission in advanced. 7. Inventory at the end of the year was valued at RM85,570. Required: Prepare the Statement of Profit or Loss and the Statement of Financial Position as at 31 December 2021. i. i. Under the accrual basis accounting, adjustments for accruals and prepayments need to be considered. Explain the term accrued expenses.
Transcribed Image Text:The following matters are to be taken into account: 1. No record was made by Shahnaz on cash withdrawals amounting to RM500 for personal use. 2. Annual depreciation for freehold land and buildings, fixtures and fittings are RM12,520 and RM17,000 respectively. The annual depreciation for motor van is RM15,000. 3. Alima Boutique issued a debit note amounting of RM2,300 to a supplier. No record has been made in the business book of accounts. 4. Utility expenses were paid in advance at the amount of RM250. 5. The salaries for the month of November and December 2021 amounting to RM10,500 was paid in January 2022. 6. The business has received RM900 of commission in advanced. 7. Inventory at the end of the year was valued at RM85,570. Required: Prepare the Statement of Profit or Loss and the Statement of Financial Position as at 31 December 2021. i. i. Under the accrual basis accounting, adjustments for accruals and prepayments need to be considered. Explain the term accrued expenses.
Shahnaz opened a boutique, Alima Boutique outlet on 1 January 2021 located in Damansara Utama. The outlet sells exclusive types of veils and 'jubah'. The following is the trial balance of Alima Boutique: Alima Boutique Trial Balance as at 31 December 2021 Debit (RM) Credit (RM) Capital 230,000 Freehold land and buildings 125,200 Fixtures and fittings 85,000 Motor van 75,000 Purchases 300,600 Sales 450,000 5,500 65,400 4,500 Sales return Salaries Utility expenses Telephone expenses Advertising and promotion 3,500 7,000 5,200 Carriage inwards Carriage outwards 5,500 Commission received 1,900 122,000 Accounts receivable Accounts payable 95,000 110,000 Loan from IID Bank 15,000 65,000 2,500 Cash in hand Cash at bank Drawings 886 900 886 90 lasi dL Ddlik Drawings 2,500 886,900 886,900
Transcribed Image Text:Shahnaz opened a boutique, Alima Boutique outlet on 1 January 2021 located in Damansara Utama. The outlet sells exclusive types of veils and 'jubah'. The following is the trial balance of Alima Boutique: Alima Boutique Trial Balance as at 31 December 2021 Debit (RM) Credit (RM) Capital 230,000 Freehold land and buildings 125,200 Fixtures and fittings 85,000 Motor van 75,000 Purchases 300,600 Sales 450,000 5,500 65,400 4,500 Sales return Salaries Utility expenses Telephone expenses Advertising and promotion 3,500 7,000 5,200 Carriage inwards Carriage outwards 5,500 Commission received 1,900 122,000 Accounts receivable Accounts payable 95,000 110,000 Loan from IID Bank 15,000 65,000 2,500 Cash in hand Cash at bank Drawings 886 900 886 90 lasi dL Ddlik Drawings 2,500 886,900 886,900
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