The following is the trial balance of Aroro Enterprise as at 31 August 2019 Particulars Debit (RM) Credit (RM) Capital 48,400 Drawings 3,500 Trade receivables 9,000 Trade payables 12,500 Sales 40,400 Purchases 31,000 Sales returns 300 Purchases returns 250 Wages and salaries 5,600 Discounts allowed 120 Discounts received 200 Provision for doubtful debts 300 Insurance 700 Inventory as at 1 September 2018 2,400 Utilities 950 Rates 350 Premises 10,000 Fixtures and fittings 3,000 Motor van 20,000 Cash in hand 330 Cash at bank 14,800 TOTAL 102,050 102,050 Additional information as at 31 August 2019: Inventory as at 31 August 2019 amounted RM3,300 An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. The provision for doubtful debts is 1% of the outstanding trade receivables. The owner took RM100 worth of goods from the business for his own use Required: Statement of Profit or Loss and Others Comprehensive Income for the year Ended 31 August 2019. Statement of Financial Position as at 31 August 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

The following is the trial balance of Aroro Enterprise as at 31 August 2019

Particulars	Debit (RM)	Credit (RM)
Capital		48,400
Drawings	3,500
Trade receivables	9,000
Trade payables		12,500
Sales		40,400
Purchases	31,000
Sales returns	300
Purchases returns		250
Wages and salaries	5,600
Discounts allowed	120
Discounts received		200
Provision for doubtful debts		300
Insurance	700
Inventory as at 1 September 2018	2,400
Utilities	950
Rates	350
Premises	10,000
Fixtures and fittings	3,000
Motor van	20,000
Cash in hand	330
Cash at bank	14,800
TOTAL	102,050	102,050

Additional information as at 31 August 2019:

Inventory as at 31 August 2019 amounted RM3,300
An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts.
The provision for doubtful debts is 1% of the outstanding trade receivables.
The owner took RM100 worth of goods from the business for his own use

Required:

Statement of Profit or Loss and Others Comprehensive Income for the year Ended 31 August 2019.
Statement of Financial Position as at 31 August 2019.

Expert Solution

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions