O'Hara Pan Enterprise is a retailer of kitchen items like cabinets, pots, pans etc. It is...

   

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O'Hara Pan Enterprise is a retailer of kitchen items like cabinets, pots, pans etc. It is owned by Ann-Kam Eng. Besides sales, it conducts healthy cooking lessons. O'Hara Pan's assets and liabilities at respective year end (31 March) were as follows: Accum, depreciation - Building Accum, depreciation - Fixtures & Fittings Accum, depreciation - O/Equipment Allowance for doubtful debts Building improvements Cash at bank Customers on account balance Fixed deposit account balance Fixtures & Fittings Land and building (Land cost RM70,000) Office equipment Other payables (Building improvements) Petty cash Repairs and maintenance expense unpaid Salaries and employee benefits Suppliers on account balance Transport expenses paid in advance Unexpired insurance Unsold goods in hand Unused supplies in hand Collection from cooking lessons Contribution by owner 2021 Loan payable Receipts from customers on account RM 12,000 9,000 9,500 1,000 10,000 33,000 16,000 220,000 19,500 100 1,000 7,000 21,000 15,000 18,000 20,000 1,500 2022 RM 16,000 10,800 13,000 1,500 (14,000) 44,000 16,000 220,000 32,000 25,000 200 2,000 6,000 32,000 28,800 15,200 35,000 3,000 2023 RM ?? 13,800 ?? ?? 50,000 ?? O'Hara Pan's cash at bank summary for the year ended 31 March 2023, is as follows: Receipts RM Cash sales 44,000 33,000 99,000 220,000 550,000 55,000 15,000 36,000 220.000 32,000 50,000 500 3,000 5,000 20,000 18,000 10,200 27,000 4,500 Payments Drawings by owner Fixed deposit account Fixtures & fittings Freight charges Local council rates Miscellaneous expenses Payment to suppliers for goods Petty cash Repairs and maintenance Salaries and employee benefits Supplies RM 120,000 15,000 20,000 44,000 7,700 13,300 166,000 300 11,100 55,000 26,600 O'Hara Pan also provided the following additional information: 1. Two cheques amounting RM24,000 and RM10,000 received from two credit customers Linda and Kunda respectively during the final week of March 2023. They were deposited into the business bank account on 30 March 2023 but did not appear on the bank statement for March 2023. 2. One cheque amounting to RM8,800 was returned by the bank stating, 'Refer to the Drawer'. 3. Three cheques for RM1,100 (Cheque No. 12345), RM2,200 (Cheque No. 12355) and RM4,400 (Cheque No. 12361) were issued by O'Hara Pan in February and March 2023 were not paid by the bank. 4. The bank statement had the following items but were not in the cash at bank summary above. 1. 11. iii. IV. 5. The bank statement also showed a cheque for RM7,777 issued by Bah Ree San Trading, (another client of the bank) was debited. O'Hara Pan has notified the bank of this error. iv. Received a credit transfer of RM14,500 for cooking lessons to be provided for the University staff in May 2023 6. The bank loan was taken on 1 January 2023 at an interest rate of 5% per annum. Interest is payable quarterly beginning 1 April 2023. Also, 10% of the loan is repayable half yearly beginning 1 July 2023. 7. For the year ended 31 March 2023, the following summary were also provided: 1. Total value of goods returned by customers on account was RM10,000 Total value of goods returned to suppliers on account was RM11,000 ii. iii. Total value of settlement discount from suppliers on account as shown on the payment receipts received RM5,250 Total value of settlement discount claimed by customers on account as shown on the receipts issued RM2,320 10% from the 'receipts from customers on account were received for cooking lessons conducted. V. Bank charges amounted to RM111 Interest income on fixed deposit account RM1,000 Standing instruction for insurance RM36,000 vi. Quantity discount received from credit suppliers were RM11,000 and quantity discount allowed to credit customers were RM22,000. 8. Bee Anne is a credit supplier as well as a credit customer of O'Hara Pan. During the year, a memo was prepared to indicate that both Bee Anne and O'Hara Pan agreed to offset contra their owing. O'Hara Pan owed Bee Anne RM12,000 while Bee Anne owed O'Hara Pan RM12,345. A cheque was received from Bee Anne for the difference and banked in. 9. Pea Ann and Beh Buz are O'Hara Pan's customers on account, owing RM9,000 and RM7,000 respectively. Both became insolvent. On 31 March 2022, 40% of the debt (a) (b) (c) (d) (e) (f) owed by Pea Ann and 70% of the debt owed by Beh Buz, were written off as uncollectible. The remaining debt was collected, recorded and banked in. 10. 50% of freight charges expense was related to freight on delivering goods to customers. 11. The bad debts expense for the year ended 31 March 2022 is estimated to be 2% of the net credit sales (round up to the nearest RM). 12. The cooking lessons were carried out in a rented kitchen next door. Hence an improvement was done to the existing building to accommodate a new kitchen. It was completed on 31 December 2022. (h) (i) 13. Other payables of RM25,000 was paid during the year but it was not recorded in the books. 14. The depreciation is 2% per annum and (on cost) of building, 5% per annum on building improvements and 10% per annum (on carrying amount) of office equipment. #Note: In answering the following questions, students must use the appropriate terms for the items to be presented on the financial statements. REQUIRED: 15. Unsold goods in hand at 31 March 2023, included some 'slow moving' goods costing RM10,000; but the net realisable value of that goods was RM11,000. Accounts receivable control account for the year ended 31 March 2023; Accounts payable control account for the year ended 31 March 2023; Updated cash at bank summary for the year ended 31 March 2023; Bank reconciliation statement as at 31 March 202; The Income statement for O'Hara Pan for the year ended 31 March 2023; The Statement of changes in equity for the year ended 31 March 2023; The Balance Sheet as at 31 March 2023; [40] The Statement of cash flows for the year ended 31 March 2023. The owner of O'Hara Pan, does not understand why the profit or loss for the year is not same as the cash at bank balance. Ann Van Eng also does not understand the statement of cash flows in (h). Explain to the owner. (Word limit: Max 500 words) [20] (j) For the year ended 31 March 2022, calculate all the (20) ratios as in the appendix; O'Hara Pan Enterprise is a retailer of kitchen items like cabinets, pots, pans etc. It is owned by Ann-Kam Eng. Besides sales, it conducts healthy cooking lessons. O'Hara Pan's assets and liabilities at respective year end (31 March) were as follows: Accum, depreciation - Building Accum, depreciation - Fixtures & Fittings Accum, depreciation - O/Equipment Allowance for doubtful debts Building improvements Cash at bank Customers on account balance Fixed deposit account balance Fixtures & Fittings Land and building (Land cost RM70,000) Office equipment Other payables (Building improvements) Petty cash Repairs and maintenance expense unpaid Salaries and employee benefits Suppliers on account balance Transport expenses paid in advance Unexpired insurance Unsold goods in hand Unused supplies in hand Collection from cooking lessons Contribution by owner 2021 Loan payable Receipts from customers on account RM 12,000 9,000 9,500 1,000 10,000 33,000 16,000 220,000 19,500 100 1,000 7,000 21,000 15,000 18,000 20,000 1,500 2022 RM 16,000 10,800 13,000 1,500 (14,000) 44,000 16,000 220,000 32,000 25,000 200 2,000 6,000 32,000 28,800 15,200 35,000 3,000 2023 RM ?? 13,800 ?? ?? 50,000 ?? O'Hara Pan's cash at bank summary for the year ended 31 March 2023, is as follows: Receipts RM Cash sales 44,000 33,000 99,000 220,000 550,000 55,000 15,000 36,000 220.000 32,000 50,000 500 3,000 5,000 20,000 18,000 10,200 27,000 4,500 Payments Drawings by owner Fixed deposit account Fixtures & fittings Freight charges Local council rates Miscellaneous expenses Payment to suppliers for goods Petty cash Repairs and maintenance Salaries and employee benefits Supplies RM 120,000 15,000 20,000 44,000 7,700 13,300 166,000 300 11,100 55,000 26,600 O'Hara Pan also provided the following additional information: 1. Two cheques amounting RM24,000 and RM10,000 received from two credit customers Linda and Kunda respectively during the final week of March 2023. They were deposited into the business bank account on 30 March 2023 but did not appear on the bank statement for March 2023. 2. One cheque amounting to RM8,800 was returned by the bank stating, 'Refer to the Drawer'. 3. Three cheques for RM1,100 (Cheque No. 12345), RM2,200 (Cheque No. 12355) and RM4,400 (Cheque No. 12361) were issued by O'Hara Pan in February and March 2023 were not paid by the bank. 4. The bank statement had the following items but were not in the cash at bank summary above. 1. 11. iii. IV. 5. The bank statement also showed a cheque for RM7,777 issued by Bah Ree San Trading, (another client of the bank) was debited. O'Hara Pan has notified the bank of this error. iv. Received a credit transfer of RM14,500 for cooking lessons to be provided for the University staff in May 2023 6. The bank loan was taken on 1 January 2023 at an interest rate of 5% per annum. Interest is payable quarterly beginning 1 April 2023. Also, 10% of the loan is repayable half yearly beginning 1 July 2023. 7. For the year ended 31 March 2023, the following summary were also provided: 1. Total value of goods returned by customers on account was RM10,000 Total value of goods returned to suppliers on account was RM11,000 ii. iii. Total value of settlement discount from suppliers on account as shown on the payment receipts received RM5,250 Total value of settlement discount claimed by customers on account as shown on the receipts issued RM2,320 10% from the 'receipts from customers on account were received for cooking lessons conducted. V. Bank charges amounted to RM111 Interest income on fixed deposit account RM1,000 Standing instruction for insurance RM36,000 vi. Quantity discount received from credit suppliers were RM11,000 and quantity discount allowed to credit customers were RM22,000. 8. Bee Anne is a credit supplier as well as a credit customer of O'Hara Pan. During the year, a memo was prepared to indicate that both Bee Anne and O'Hara Pan agreed to offset contra their owing. O'Hara Pan owed Bee Anne RM12,000 while Bee Anne owed O'Hara Pan RM12,345. A cheque was received from Bee Anne for the difference and banked in. 9. Pea Ann and Beh Buz are O'Hara Pan's customers on account, owing RM9,000 and RM7,000 respectively. Both became insolvent. On 31 March 2022, 40% of the debt (a) (b) (c) (d) (e) (f) owed by Pea Ann and 70% of the debt owed by Beh Buz, were written off as uncollectible. The remaining debt was collected, recorded and banked in. 10. 50% of freight charges expense was related to freight on delivering goods to customers. 11. The bad debts expense for the year ended 31 March 2022 is estimated to be 2% of the net credit sales (round up to the nearest RM). 12. The cooking lessons were carried out in a rented kitchen next door. Hence an improvement was done to the existing building to accommodate a new kitchen. It was completed on 31 December 2022. (h) (i) 13. Other payables of RM25,000 was paid during the year but it was not recorded in the books. 14. The depreciation is 2% per annum and (on cost) of building, 5% per annum on building improvements and 10% per annum (on carrying amount) of office equipment. #Note: In answering the following questions, students must use the appropriate terms for the items to be presented on the financial statements. REQUIRED: 15. Unsold goods in hand at 31 March 2023, included some 'slow moving' goods costing RM10,000; but the net realisable value of that goods was RM11,000. Accounts receivable control account for the year ended 31 March 2023; Accounts payable control account for the year ended 31 March 2023; Updated cash at bank summary for the year ended 31 March 2023; Bank reconciliation statement as at 31 March 202; The Income statement for O'Hara Pan for the year ended 31 March 2023; The Statement of changes in equity for the year ended 31 March 2023; The Balance Sheet as at 31 March 2023; [40] The Statement of cash flows for the year ended 31 March 2023. The owner of O'Hara Pan, does not understand why the profit or loss for the year is not same as the cash at bank balance. Ann Van Eng also does not understand the statement of cash flows in (h). Explain to the owner. (Word limit: Max 500 words) [20] (j) For the year ended 31 March 2022, calculate all the (20) ratios as in the appendix;

Answer rating: 100% (QA)

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