The financial year of Best Friend Enterprise ended on 31 December 2021. The following transactions have...

 

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The financial year of Best Friend Enterprise ended on 31 December 2021. The following transactions have been extracted from the company's ledger. (i) Motor expenses: Paid in 2021 RM600; Owing at 31 December 2021 RM500. (3 marks) (ii) Carriage outward: Paid in 2021 RM1,220; Prepaid as at 31 December 2021 RM310. (3 marks) (iii) Rent and business rate (combined account): Paid rent and rate in 2021 RM15,200; Rent prepaid at 31 December 2020 was RM1,550; Rent owed at 31 December 2021 was RM2,120; Business rates prepaid 31 December 2020 RM920. Rates owing as at 31 December 2021 RM340. (6 marks) (iv) Stationery: Paid in 2021 RM11,530; Prepaid at 31 December 2020 RM2,110; Owing at 31 December 2021 RM1,510; Physical balance of stationery at 31 December 2020 RM2,140 while physical balance at 31 December 2021 RM490. (6 marks) Required: (a) Enter each transaction above into the ledger accounts. (b) Prepare an Income Statement (extract) for the year ended 31 December 2021, and (4 marks) (c) the Balance Sheet (extract) as at that date. (3 marks) The financial year of Best Friend Enterprise ended on 31 December 2021. The following transactions have been extracted from the company's ledger. (i) Motor expenses: Paid in 2021 RM600; Owing at 31 December 2021 RM500. (3 marks) (ii) Carriage outward: Paid in 2021 RM1,220; Prepaid as at 31 December 2021 RM310. (3 marks) (iii) Rent and business rate (combined account): Paid rent and rate in 2021 RM15,200; Rent prepaid at 31 December 2020 was RM1,550; Rent owed at 31 December 2021 was RM2,120; Business rates prepaid 31 December 2020 RM920. Rates owing as at 31 December 2021 RM340. (6 marks) (iv) Stationery: Paid in 2021 RM11,530; Prepaid at 31 December 2020 RM2,110; Owing at 31 December 2021 RM1,510; Physical balance of stationery at 31 December 2020 RM2,140 while physical balance at 31 December 2021 RM490. (6 marks) Required: (a) Enter each transaction above into the ledger accounts. (b) Prepare an Income Statement (extract) for the year ended 31 December 2021, and (4 marks) (c) the Balance Sheet (extract) as at that date. (3 marks)

Answer rating: 100% (QA)

The answer is below provided step by step manner step1 Ledger accounts Motor expense account Particu... View the full answer