The following trial balance was extracted from the books of Jaya Enterprise at 31 December 2020. RM
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Question:
The following trial balance was extracted from the books of Jaya Enterprise at 31 December 2020.
RM | RM | |
Bank | 135,000 | |
Drawings | 10,000 | |
Inventory as at 1 January 2020 | 800,000 | |
Sales | 2,100,000 | |
Purchases | 1,170,000 | |
Accounts receivable | 468,000 | |
Allowance for doubtful debts | 45,000 | |
Accounts payable | 890,000 | |
Rent and rates | 128,000 | |
Heating and lighting | 65,000 | |
Insurance | 350,000 | |
Commission received | 42,000 | |
Bad debts | 72,000 | |
Motor vehicles | 600,000 | |
Returns inwards | 30,000 | |
Returns outwards | 20,000 | |
Furniture and fittings | 400,000 | |
Accumulated depreciation: Motor vehicles Furniture and fittings | 180,000 76,000 | |
Capitals | 875,000 |
4,228,000 | 4,228,000 |
Additional information:
- Inventory at the cost of business has been valued at RM550,000 at market price.
- The allowance for doubtful debts is to be adjusted to 5% of accounts receivable.
- Rent is due but unpaid RM42,000.
- The amount shown for insurance on the trial balance includes a premium paid of RM4,200, which represents the annual insurance premium to 31st March 2021.
- Depreciation is written off non-current assets as follows: Motor vehicles at 10% per annum using straight line basis
Furniture and fittings at 10% per annum using reducing balance
Required:
- Prepare the income statement for Jaya Enterprise for the year ended 31 December 2020
(15 marks)
- Prepare the balance sheet for Jaya Enterprise as at 31 December 2020. (10 marks)
(Total 25 marks)
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