The following balances were extracted from the books of Merong Mahawangsa Sdn Bhd as at 31 December 2009. Debit (RM) Credit (RM) Capital 100,900 Purchases and sales 360,000 567,320 Bank 43,000 Cash 7,600 Insurance on purchases 4,300 Plant and machinery 140,000 Motor vehicles 80,000 Copyrights 22,000 Loan from TEKUN 50,000 Long term investment 10,000 Carriage inwards 7,100 Inventory at 1 January 2009 42,400 Commission received 6,800 Returns 19,000 8,000 Water and electricity 9,230 Telephone and internet 2,200 Rental income 4,800 Repairs on motor vehicles 2,800 Accounts receivable 90,490 Accounts payable 27,000 Salaries 33,900 Provision for doubtful debts 1,200 Mortgage on plant 20,800 Advertising 16,700 Dividend 5,500 Accumulated depreciation: Plant and machinery 50,400 Motor vehicles 48,000 890,720 890,720 At the end of the accounting period, you are provided with the following information. (a) The inventory as at 31 December 2009 was valued at RM21,000. (b) En. Merong, the owner of the business, took goods worth RM1,200 for his personal use. (c) En. Merong, decided to write off the debts worth RM2,300 when he discovered one of the accounts receivable was in financial difficulties. (d) Provision for doubtful debts is to be adjusted to 2% on the outstanding accounts receivable. (e) It is the company's policy to depreciate its non-current assets as follows: Plant and machinery Motor vehicles 20% on Reducing Balance method 20% on Straight Line method (f) The company had been guaranteed a commission of RM680 per month. (g) Interest on loan is 5% per annum. The loan was taken on 1 February 2009. (h) RM5,000 of the advertising expenses is for a campaign which will be held in year 2010. You are required to prepare: (1) Statement of Comprehensive income for the year ended 31 December 2009. (2) Statement of Financial Position as at 31 December 2009.
The following balances were extracted from the books of Merong Mahawangsa Sdn Bhd as at 31 December 2009. Debit (RM) Credit (RM) Capital 100,900 Purchases and sales 360,000 567,320 Bank 43,000 Cash 7,600 Insurance on purchases 4,300 Plant and machinery 140,000 Motor vehicles 80,000 Copyrights 22,000 Loan from TEKUN 50,000 Long term investment 10,000 Carriage inwards 7,100 Inventory at 1 January 2009 42,400 Commission received 6,800 Returns 19,000 8,000 Water and electricity 9,230 Telephone and internet 2,200 Rental income 4,800 Repairs on motor vehicles 2,800 Accounts receivable 90,490 Accounts payable 27,000 Salaries 33,900 Provision for doubtful debts 1,200 Mortgage on plant 20,800 Advertising 16,700 Dividend 5,500 Accumulated depreciation: Plant and machinery 50,400 Motor vehicles 48,000 890,720 890,720 At the end of the accounting period, you are provided with the following information. (a) The inventory as at 31 December 2009 was valued at RM21,000. (b) En. Merong, the owner of the business, took goods worth RM1,200 for his personal use. (c) En. Merong, decided to write off the debts worth RM2,300 when he discovered one of the accounts receivable was in financial difficulties. (d) Provision for doubtful debts is to be adjusted to 2% on the outstanding accounts receivable. (e) It is the company's policy to depreciate its non-current assets as follows: Plant and machinery Motor vehicles 20% on Reducing Balance method 20% on Straight Line method (f) The company had been guaranteed a commission of RM680 per month. (g) Interest on loan is 5% per annum. The loan was taken on 1 February 2009. (h) RM5,000 of the advertising expenses is for a campaign which will be held in year 2010. You are required to prepare: (1) Statement of Comprehensive income for the year ended 31 December 2009. (2) Statement of Financial Position as at 31 December 2009.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following balances were extracted from the books of Merong Mahawangsa Sdn Bhd as at 31
December 2009.
Debit (RM) Credit (RM)
Capital
100,900
Purchases and sales
360,000
567,320
Bank
43,000
Cash
7,600
Insurance on purchases
4,300
Plant and machinery
140,000
Motor vehicles
80,000
Copyrights
22,000
Loan from TEKUN
50,000
Long term investment
10,000
Carriage inwards
7,100
Inventory at 1 January 2009
42,400
Commission received
6,800
Returns
19,000
8,000
Water and electricity
9,230
Telephone and internet
2,200
Rental income
4,800
Repairs on motor vehicles
2,800
Accounts receivable
90,490
Accounts payable
27,000
Salaries
33,900
Provision for doubtful debts
1,200
Mortgage on plant
20,800
Advertising
16,700
Dividend
5,500
Accumulated depreciation:
Plant and machinery
50,400
Motor vehicles
48,000
890,720
890,720
At the end of the accounting period, you are provided with the following information.
(a) The inventory as at 31 December 2009 was valued at RM21,000.
(b) En. Merong, the owner of the business, took goods worth RM1,200 for his personal use.
(c) En. Merong, decided to write off the debts worth RM2,300 when he discovered one of the
accounts receivable was in financial difficulties.
(d) Provision for doubtful debts is to be adjusted to 2% on the outstanding accounts receivable.
(e) It is the company's policy to depreciate its non-current assets as follows:
Plant and machinery
Motor vehicles
20% on Reducing Balance method
20% on Straight Line method
(f) The company had been guaranteed a commission of RM680 per month.
(g) Interest on loan is 5% per annum. The loan was taken on 1 February 2009.
(h) RM5,000 of the advertising expenses is for a campaign which will be held in year 2010.
You are required to prepare:
(1)
Statement of Comprehensive income for the year ended 31 December 2009.
(2) Statement of Financial Position as at 31 December 2009.
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