Sid Berhad year end is 31 December 2020. The accountant of Sid Berhad has asked for your opinion on the accounting treatment of the following items: (i) On 18 February 2021, before the financial statements were authorised for issue, it was found that one of the customers, owing RM28,000 at 31 December 2020, had been declared bankrupt. Required: Advise Sid Berhad’s accountant on the accounting treatments for all the above- mentioned items. Your answer shall make reference to relevant MFRS Standards

Sid Berhad year end is 31 December 2020. The accountant of Sid Berhad has asked for your opinion on the accounting treatment of the following items: (i) On 18 February 2021, before the financial statements were authorised for issue, it was found that one of the customers, owing RM28,000 at 31 December 2020, had been declared bankrupt. Required: Advise Sid Berhad’s accountant on the accounting treatments for all the above- mentioned items. Your answer shall make reference to relevant MFRS Standards

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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Question

Sid Berhad year end is 31 December 2020. The accountant of Sid Berhad has asked for your opinion on the accounting treatment of the following items:

(i) On 18 February 2021, before the financial statements were authorised for issue, it was found that one of the customers, owing RM28,000 at 31 December 2020, had been declared bankrupt.

Required:

Advise Sid Berhad’s accountant on the accounting treatments for all the above- mentioned items. Your answer shall make reference to relevant MFRS Standards.

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