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The following trial balance has been extracted from the ledger of Hensen, a sole trader as at 31 December 2016, end of his most recent financial year. Hensen Trial Balance as at 31 December 2016 Debit (RM) Credit (RM) Property ( at cost) 150,000 Equipment ( at cost) 87,500 Provision for depreciation (as at 1 January 2016) Property 15,000 • Equipment 35,000 Stock, as at 1 January 2016 15,000 Purchases 359,600 Sales 485,000 Discount allowed and received 3,370 4.420 Wages and salaries 52,360 Bad debts 1,720 Loan interest 1,560 Carriage outward 8,310 Other operating expenses 38,800 Trade receivable 46.200 Trade payable 33,600 Provision for doubtful debts 280 Cash on hand 250 Bank overdraft 14,500 Drawings 28,930 13% Loan 12,000 Capital, as at 1 January 2016 193.800 793,600 793,600 Additional information as at 31 December 2016 is available: a. Stock as at 31 December 2016 was valued at RM36,000 b. Depreciation for the year ending 31 December 2016 has yet to be provided as follows: • Property – 1% using straight line method • Equipment – 15% using reducing balance method c. Wages and salaries are accrued by RM250 d. Other operating expenses include certain expenses prepaid by RM600 and accrued by RM400 e. Provision for bad debts is to be adjusted to 0.5% (0.005) of trade receivable as at 31 December 2016. 1. Purchase includes goods valued at RM3,200 vihich were withdrawn by Mr Hensen for his personal use. 9. A provision is to be made for loan interest Required Prepare the Income Statement for the year ending 31 December 2016 and a Statement of Financial Position as at that date.

The following trial balance has been extracted from the ledger of Hensen, a sole trader as at 31 December 2016, end of his most recent financial year. Hensen Trial Balance as at 31 December 2016 Debit (RM) Credit (RM) Property ( at cost) 150,000 Equipment ( at cost) 87,500 Provision for depreciation (as at 1 January 2016) Property 15,000 • Equipment 35,000 Stock, as at 1 January 2016 15,000 Purchases 359,600 Sales 485,000 Discount allowed and received 3,370 4.420 Wages and salaries 52,360 Bad debts 1,720 Loan interest 1,560 Carriage outward 8,310 Other operating expenses 38,800 Trade receivable 46.200 Trade payable 33,600 Provision for doubtful debts 280 Cash on hand 250 Bank overdraft 14,500 Drawings 28,930 13% Loan 12,000 Capital, as at 1 January 2016 193.800 793,600 793,600 Additional information as at 31 December 2016 is available: a. Stock as at 31 December 2016 was valued at RM36,000 b. Depreciation for the year ending 31 December 2016 has yet to be provided as follows: • Property – 1% using straight line method • Equipment – 15% using reducing balance method c. Wages and salaries are accrued by RM250 d. Other operating expenses include certain expenses prepaid by RM600 and accrued by RM400 e. Provision for bad debts is to be adjusted to 0.5% (0.005) of trade receivable as at 31 December 2016. 1. Purchase includes goods valued at RM3,200 vihich were withdrawn by Mr Hensen for his personal use. 9. A provision is to be made for loan interest Required Prepare the Income Statement for the year ending 31 December 2016 and a Statement of Financial Position as at that date.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following trial balance has been extracted from the ledger of Hensen, a sole trader as at 31 December 2016, end of his most recent financial year. Hensen Trial Balance as at 31 December 2016 Debit (RM) Credit (RM) Property ( at cost) 150,000 Equipment ( at cost) 87,500 Provision for depreciation (as at 1 January 2016) Property 15,000 Equipment 35,000 Stock, as at 1 January 2016 15,000 Purchases 359,600 Sales 485,000 Discount allowed and received 3,370 4,420 Wages and salaries 52,360 Bad debts 1,720 Loan interest 1,560 Carriage outward Other operating expenses 8,310 38,800 Trade receivable 46,200 Trade payable 33,600 Provision for doubtful debts 280 Cash on hand 250 Bank overdraft 14,500 Drawings 28,930 13% Loan 12,000 Capital, as at 1 January 2016 193,800 793,600 793,600 Additional information as at 31 December 2016 is available: a. Stock as at 31 December 2016 was valued at RM36,000 b. Depreciation for the year ending 31 December 2016 has yet to be provided as follows: • Property – 1% using straight line method • Equipment – 15% using reducing balance method c. Wages and salaries are accrued by RM250 d. Other operating expenses include certain expenses prepaid by RM600 and accrued by RM400 e. Provision for bad debts is to be adjusted to 0.5% (0.005) of trade receivable as at 31 December 2016. i. Purchase includes goods valued at RM3,200 which were withdrawn by Mr Hensen for his personal use. g. A provision is to be made for loan interest Required Prepare the Income Statement for the year ending 31 December 2016 and a Statement of Financial Position as at that date.
Transcribed Image Text:The following trial balance has been extracted from the ledger of Hensen, a sole trader as at 31 December 2016, end of his most recent financial year. Hensen Trial Balance as at 31 December 2016 Debit (RM) Credit (RM) Property ( at cost) 150,000 Equipment ( at cost) 87,500 Provision for depreciation (as at 1 January 2016) Property 15,000 Equipment 35,000 Stock, as at 1 January 2016 15,000 Purchases 359,600 Sales 485,000 Discount allowed and received 3,370 4,420 Wages and salaries 52,360 Bad debts 1,720 Loan interest 1,560 Carriage outward Other operating expenses 8,310 38,800 Trade receivable 46,200 Trade payable 33,600 Provision for doubtful debts 280 Cash on hand 250 Bank overdraft 14,500 Drawings 28,930 13% Loan 12,000 Capital, as at 1 January 2016 193,800 793,600 793,600 Additional information as at 31 December 2016 is available: a. Stock as at 31 December 2016 was valued at RM36,000 b. Depreciation for the year ending 31 December 2016 has yet to be provided as follows: • Property – 1% using straight line method • Equipment – 15% using reducing balance method c. Wages and salaries are accrued by RM250 d. Other operating expenses include certain expenses prepaid by RM600 and accrued by RM400 e. Provision for bad debts is to be adjusted to 0.5% (0.005) of trade receivable as at 31 December 2016. i. Purchase includes goods valued at RM3,200 which were withdrawn by Mr Hensen for his personal use. g. A provision is to be made for loan interest Required Prepare the Income Statement for the year ending 31 December 2016 and a Statement of Financial Position as at that date.
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