Fathonne a sole trader did not keep full accounting records during her first year of business....

  

Transcribed Image Text:

Fathonne a sole trader did not keep full accounting records during her first year of business. Her commenced trading on 01 July 2020 bringing in a Motorcycle which he valued at RM13,000 and cash deposited into business bank account. A summary of the bank account for the year ended 30 June 2021 is as follows: Bank account RM RM 37,401 Cash invested 11,103 Cash sales Miscellaneous items Repayment of loan Closing balance 20,033 13,165 2,275 Trade Receivables 4,625 44,301 44,301 Before banking the receipts from cash sales, Fathonne withdrew RM520 per calendar month for personal use and spent a total of RM2,682 on admin expenses. In addition to her cash drawings, Fathonne took goods valued at RM559 for her personal consumption during the year. On 01 December 2019 Fathonne obtained a loan of RM7,020. The repayment term was RM325 per calendar month inclusive of RM33 for monthly interest over a two-year period. The first payment was due on 31 December 2019. All payments were made on the due dates. The amount borrowed was used to purchase office furniture. The miscellaneous items in the summarized bank account consisted of rental expenses at RM104 per calendar month, payments to suppliers of goods and also payments in respect of purchases of other furniture in addition to those financed by the loan. Fathonne also provided the following information: i) A uniform gross profit was fixed at 25% on cost of sales. ii) At 30 June 2021 the following figures were available: RM Trade receivables 6,637 8,728 Trade Payables Inventory 3,042 iii) Office furniture and Motorcycle were to be depreciated at 10% per annum on cost and 20% per annum on book value respectively. iv) Mary the sales agent was entitled to a 10% commission on the net profit after the commission. CONFIDENTIAL You are required to prepare: a) An income statement (Statement of Comprehensive Income) for the year ended 30 June 2021. b) Statement of Financial Position as at 30 June 2021 (Show ALL workings) TOTAL 50 POINTS END OF QUESTION Fathonne a sole trader did not keep full accounting records during her first year of business. Her commenced trading on 01 July 2020 bringing in a Motorcycle which he valued at RM13,000 and cash deposited into business bank account. A summary of the bank account for the year ended 30 June 2021 is as follows: Bank account RM RM 37,401 Cash invested 11,103 Cash sales Miscellaneous items Repayment of loan Closing balance 20,033 13,165 2,275 Trade Receivables 4,625 44,301 44,301 Before banking the receipts from cash sales, Fathonne withdrew RM520 per calendar month for personal use and spent a total of RM2,682 on admin expenses. In addition to her cash drawings, Fathonne took goods valued at RM559 for her personal consumption during the year. On 01 December 2019 Fathonne obtained a loan of RM7,020. The repayment term was RM325 per calendar month inclusive of RM33 for monthly interest over a two-year period. The first payment was due on 31 December 2019. All payments were made on the due dates. The amount borrowed was used to purchase office furniture. The miscellaneous items in the summarized bank account consisted of rental expenses at RM104 per calendar month, payments to suppliers of goods and also payments in respect of purchases of other furniture in addition to those financed by the loan. Fathonne also provided the following information: i) A uniform gross profit was fixed at 25% on cost of sales. ii) At 30 June 2021 the following figures were available: RM Trade receivables 6,637 8,728 Trade Payables Inventory 3,042 iii) Office furniture and Motorcycle were to be depreciated at 10% per annum on cost and 20% per annum on book value respectively. iv) Mary the sales agent was entitled to a 10% commission on the net profit after the commission. CONFIDENTIAL You are required to prepare: a) An income statement (Statement of Comprehensive Income) for the year ended 30 June 2021. b) Statement of Financial Position as at 30 June 2021 (Show ALL workings) TOTAL 50 POINTS END OF QUESTION

Answer rating: 100% (QA)

Solution a b Income statement for year ended 30 June 2021 Particulars Amoun... View the full answer