The following Trial Balance was extracted from the books of Mr Ayden as at 30 December 20X1: Debit Credit RM RM Sales and Purchases 68,080 215,580 Returns 220 380 Inventories as at 1 January 20X1 18,400 Rent received 9,000 Building at cost 520,000 Advertising expenses 27,600 Trade receivables and Trade Payables 168,000 100,000 Salaries and wages 68,000 Motor vehicles at cost 100,000 Insurance 24,000 Sundry expenses 15,000 Accumulated depreciation: Motor vehicles 40,000 Accumulated depreciation: Buildings 64,000 Electricity and water 7,100 Allowance for doubtful debts 1,200 Discounts 3,000 7,000 Printing and stationery 2,496 Cash in hand 136,000 Bank overdraft 736 Capital 720,000 1,157,896 1,157,896 Additional information: Rent received in arrears as at 31 December 20X1 was RM1,000. Insurance includes RM2,000 paid for January and February 20X2. Depreciation charges are to be provided as follows: - Motor vehicles at 10% per annum on net book value - Buildings at the rate of 1% per annum on cost Electricity charges outstanding for the year amounted to RM590. Allowance for doubtful debts is to be increased by RM500. Inventories as 31 December 20X1 was RM6,520. Required: Prepare the Statement of Profit or Loss for the year ended 31 December 20X1 and the Statement of Financial Position for Mr Ayden as at that date.
The following
20X1:
|
|
Debit |
|
Credit |
|
|
RM |
|
RM |
|
Sales and Purchases |
68,080 |
|
215,580 |
|
Returns |
220 |
|
380 |
|
Inventories as at 1 January 20X1 |
18,400 |
|
|
|
Rent received |
|
|
9,000 |
|
Building at cost |
520,000 |
|
|
|
Advertising expenses |
27,600 |
|
|
|
Trade receivables and Trade Payables |
168,000 |
|
100,000 |
|
Salaries and wages |
68,000 |
|
|
|
Motor vehicles at cost |
100,000 |
|
|
|
Insurance |
24,000 |
|
|
|
Sundry expenses |
15,000 |
|
|
|
|
|
|
40,000 |
|
Accumulated depreciation: Buildings |
|
|
64,000 |
|
Electricity and water |
7,100 |
|
|
|
Allowance for doubtful debts |
|
|
1,200 |
|
Discounts |
3,000 |
|
7,000 |
|
Printing and stationery |
2,496 |
|
|
|
Cash in hand |
136,000 |
|
|
|
Bank overdraft |
|
|
736 |
|
Capital |
|
|
720,000 |
|
|
1,157,896 |
|
1,157,896 |
Additional information:
- Rent received in arrears as at 31 December 20X1 was RM1,000.
- Insurance includes RM2,000 paid for January and February 20X2.
- Depreciation charges are to be provided as follows:
- Motor vehicles at 10% per annum on net book value
- Buildings at the rate of 1% per annum on cost
- Electricity charges outstanding for the year amounted to RM590.
- Allowance for doubtful debts is to be increased by RM500.
- Inventories as 31 December 20X1 was RM6,520.
Required:
Prepare the Statement of Profit or Loss for the year ended 31 December 20X1 and the Statement of Financial Position for Mr Ayden as at that date.
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