The following is the Trial Balance (extract) of Perry Sdn Bhd as at 31 December 2019. DEBIT (RM) CREDIT (RM) 6% Fixed deposit 18,000 12,000 70,000 Furniture Motor vehicles Accumulated Depreciation - Furniture - Motor vehicles Allowance for doubtful debts Account receivable (Debtors) Bank 1,200 25,200 2,500 28,500 780,000 5,000 Cash 10% Loan from MMB Bank 50,000 During the year ended 31 December 2019, the following transaction took place: a. On 22 March 2019, the business acquired a land costing RM 600,000. One-third (1/3) of the amount was paid by cheque and the balance was financed by a loan from Affin Bank. b. On 7 September 2019, the business purchased furniture costing RM 3,000. This amount was settled by cash. c. Loan from MMB Bank was taken on 3 July 2019. Interest on loan has yet to be paid. d. The business started to invest in fixed deposit on 1 October 2019. The business is yet to receive the interest. e. Bad debts to be written off amounted to RM 1,500, f. Allowance for doubtful debts is to be provided 10% of the net debtors. Depreciation of the assets are to be provided as follows: Furniture – 10% per annum on cost based on monthly basis. Motor vehicles - 20% per annum on book valued based on yearly basis.
The following is the Trial Balance (extract) of Perry Sdn Bhd as at 31 December 2019. DEBIT (RM) CREDIT (RM) 6% Fixed deposit 18,000 12,000 70,000 Furniture Motor vehicles Accumulated Depreciation - Furniture - Motor vehicles Allowance for doubtful debts Account receivable (Debtors) Bank 1,200 25,200 2,500 28,500 780,000 5,000 Cash 10% Loan from MMB Bank 50,000 During the year ended 31 December 2019, the following transaction took place: a. On 22 March 2019, the business acquired a land costing RM 600,000. One-third (1/3) of the amount was paid by cheque and the balance was financed by a loan from Affin Bank. b. On 7 September 2019, the business purchased furniture costing RM 3,000. This amount was settled by cash. c. Loan from MMB Bank was taken on 3 July 2019. Interest on loan has yet to be paid. d. The business started to invest in fixed deposit on 1 October 2019. The business is yet to receive the interest. e. Bad debts to be written off amounted to RM 1,500, f. Allowance for doubtful debts is to be provided 10% of the net debtors. Depreciation of the assets are to be provided as follows: Furniture – 10% per annum on cost based on monthly basis. Motor vehicles - 20% per annum on book valued based on yearly basis.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
prepare statment of profit or loss(extract) for the year ended 31 december 2019
Transcribed Image Text:The following is the Trial Balance (extract) of Perry Sdn Bhd as at 31 December 2019.
DEBIT (RM)
18,000
12,000
70,000
CREDIT (RM)
6% Fixed deposit
Furniture
Motor vehicles
Accumulated Depreciation
- Furniture
- Motor vehicles
Allowance for doubtful debts
Account receivable (Debtors)
Bank
1,200
25,200
2,500
28,500
780,000
Cash
5,000
10% Loan from MMB Bank
50,000
During the year ended 31 December 2019, the following transaction took place:
a. On 22 March 2019, the business acquired a land costing RM 600,000. One-third (1/3) of the
amount was paid by cheque and the balance was financed by a loan from Affin Bank.
b. On 7 September 2019, the business purchased furniture costing RM 3,000. This amount was
settled by cash.
c. Loan from MMB Bank was taken on 3 July 2019. Interest on loan has yet to be paid.
d. The business started to invest in fixed deposit on 1 October 2019. The business is yet to receive
the interest.
e. Bad debts to be written off amounted to RM 1,500.
f. Allowance for doubtful debts is to be provided 10% of the net debtors.
Depreciation of the assets are to be provided as follows:
Furniture – 10% per annum on cost based on monthly basis.
Motor vehicles – 20% per annum on book valued based on yearly basis.
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