The following Trial balance was extracted from the Books of Mega Enterprise as at 31 December 2017. RM Capital Duty on purchases Insurance Inventory as at I January 2017 Interest on loan Account receivable and account payable Purchase and sales Land and building Return inwards and return outwards Accumulated depreciation Office equipment Accumulated depreciation - Motor vehicles 10% Loan from Hong Leong Bank Cash 10% Fixed deposit Discount allowed and discount received Carriage outwards Utilities Bank Office equipment Salary and wages Motor vehicles Drawings General expenses Commissions RM 2,300 6,000 70,000 2,500 20,450 200,000 265,550 2,300 7,400 10,000 2,500 8,200 Utilities 1,500 40,000 28,000 25,000 140,000 3,000 3.500 2,800 841,000 200,000 24,500 280,000 1,850 9,850 50,000 265,000 5,000 4,800 841,000 Additional information: 1. Inventory as at 31 December 2017 was valued at RM40,000 2. Included in the carriage outwards is carriage inwards amounting to RM1,320, 3. Depreciation for the year are to be provided as follows: Straight line method, 10% per annum Office equipment Motor vehicles Reducing balance method, 15% per annum 4. Fixed deposit was invested on 1 July 2017. The half year interest was not yet received. 5. One of the employees was given an advance salary of RM700. 6. The owner took goods worth RM2,000 and cash RM1,500 for personal use. 7. The following expenses are still outstanding as at 31 December 2017. General expenses RM600 RM250 Required: a) Prepare the Statement of profit or loss for the year ended 31 December 2017 b) Prepare the Statement of financial position as at 31 December 2017
The following Trial balance was extracted from the Books of Mega Enterprise as at 31 December 2017. RM Capital Duty on purchases Insurance Inventory as at I January 2017 Interest on loan Account receivable and account payable Purchase and sales Land and building Return inwards and return outwards Accumulated depreciation Office equipment Accumulated depreciation - Motor vehicles 10% Loan from Hong Leong Bank Cash 10% Fixed deposit Discount allowed and discount received Carriage outwards Utilities Bank Office equipment Salary and wages Motor vehicles Drawings General expenses Commissions RM 2,300 6,000 70,000 2,500 20,450 200,000 265,550 2,300 7,400 10,000 2,500 8,200 Utilities 1,500 40,000 28,000 25,000 140,000 3,000 3.500 2,800 841,000 200,000 24,500 280,000 1,850 9,850 50,000 265,000 5,000 4,800 841,000 Additional information: 1. Inventory as at 31 December 2017 was valued at RM40,000 2. Included in the carriage outwards is carriage inwards amounting to RM1,320, 3. Depreciation for the year are to be provided as follows: Straight line method, 10% per annum Office equipment Motor vehicles Reducing balance method, 15% per annum 4. Fixed deposit was invested on 1 July 2017. The half year interest was not yet received. 5. One of the employees was given an advance salary of RM700. 6. The owner took goods worth RM2,000 and cash RM1,500 for personal use. 7. The following expenses are still outstanding as at 31 December 2017. General expenses RM600 RM250 Required: a) Prepare the Statement of profit or loss for the year ended 31 December 2017 b) Prepare the Statement of financial position as at 31 December 2017
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:The following Trial balance was extracted from the Books of Mega Enterprise as at 31 December
2017.
RM
RM
Capital
Duty on purchases
Insurance
Inventory as at 1 January 2017
Interest on loan
Account receivable and account payable
Purchase and sales
Land and building
Return inwards and return outwards
Accumulated depreciation - Office equipment
Accumulated depreciation - Motor vehicles
10% Loan from Hong Leong Bank
Cash
10% Fixed deposit
Discount allowed and discount received
Carriage outwards
Utilities
Bank
Office equipment
Salary and wages
Motor vehicles
Drawings
General expenses
Commissions
2.300
6,000
70,000
2,500
20,450
200,000
265,550
2,300
Office equipment
Motor vehicles
7,400
10,000
2.500
8,200
1,500
40,000
28,000
25,000
140,000
3,000
3,500
2,800
841,000
Additional information:
1. Inventory as at 31 December 2017 was valued at RM40,000
200,000
24,500
280,000
1,850
9,850
50,000
265,000
5,000
4,800
841,000
2. Included in the carriage outwards is carriage inwards amounting to RM1,320,
3. Depreciation for the year are to be provided as follows:
Straight line method, 10% per annum
Reducing balance method, 15% per annum
4. Fixed deposit was invested on 1 July 2017. The half year interest was not yet received.
5. One of the employees was given an advance salary of RM700.
6. The owner took goods worth RM2,000 and cash RM1,500 for personal use.
7. The following expenses are still outstanding as at 31 December 2017. General
RM600
expenses
RM250
Utilities
Required:
a) Prepare the Statement of profit or loss for the year ended 31 December 2017
b) Prepare the Statement of financial position as at 31 December 2017
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