Mesra Trading is a sundry shop business owned by Mr. Salleh Amin. The following trial balance...

 

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Mesra Trading is a sundry shop business owned by Mr. Salleh Amin. The following trial balance for his business as at 31 December 2020 was extracted from his books: Inventory on 1 January 2020 Cash Bank Accounts receivable Accounts payable Capital on 1 January 2020 Shop premises Shop fittings 5 year 10% p.a. bank loan Sales Returns inwards Purchases Returns outwards Carriage inwards Carriage outwards Drawings Discount allowed Discount received Utilities expenses Insurance expenses Interest expenses Wages and salaries RM 45,000 950 4,000 6,000 100,000 30,000 3,000 220,000 400 500 600 200 1,800 900 1,250 25,000 72,503 RM 12,000 80,000 25,000 320,000 2,000 600 72,503 Additional Information: On 31 December 2020, there was: i. ii. a. iii. iv. V. The owner took RM 500 of the goods from the shop for personal use. The owner withdrew cash of RM 300 for a dinner celebration with his family. Bank interest of RM 80 was estimated to be earned on the bank balances of the business but this has not yet been received or recorded by the firm. viii. It was decided to depreciate shop fittings at 10% per annum in straight line basis. Inventory amounting to RM 38,000. Interest on bank loan for half a year was unpaid. Insurance expense included RM 100 which was for the next accounting period. Utilities estimated to be RM 160 was expected to be paid for December 2020 but the bills were not yet received. vi. vii. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 b. Prepare the Statement of Financial Position as at 31 December 2020 [10 marks] [15 marks] Mesra Trading is a sundry shop business owned by Mr. Salleh Amin. The following trial balance for his business as at 31 December 2020 was extracted from his books: Inventory on 1 January 2020 Cash Bank Accounts receivable Accounts payable Capital on 1 January 2020 Shop premises Shop fittings 5 year 10% p.a. bank loan Sales Returns inwards Purchases Returns outwards Carriage inwards Carriage outwards Drawings Discount allowed Discount received Utilities expenses Insurance expenses Interest expenses Wages and salaries RM 45,000 950 4,000 6,000 100,000 30,000 3,000 220,000 400 500 600 200 1,800 900 1,250 25,000 72,503 RM 12,000 80,000 25,000 320,000 2,000 600 72,503 Additional Information: On 31 December 2020, there was: i. ii. a. iii. iv. V. The owner took RM 500 of the goods from the shop for personal use. The owner withdrew cash of RM 300 for a dinner celebration with his family. Bank interest of RM 80 was estimated to be earned on the bank balances of the business but this has not yet been received or recorded by the firm. viii. It was decided to depreciate shop fittings at 10% per annum in straight line basis. Inventory amounting to RM 38,000. Interest on bank loan for half a year was unpaid. Insurance expense included RM 100 which was for the next accounting period. Utilities estimated to be RM 160 was expected to be paid for December 2020 but the bills were not yet received. vi. vii. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 b. Prepare the Statement of Financial Position as at 31 December 2020 [10 marks] [15 marks]

Answer rating: 100% (QA)

a Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 Sal... View the full answer