The following information was available on 31 December 2019: i. Inventory valued at cost, RM48,750. ii....
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The following information was available on 31 December 2019: i. Inventory valued at cost, RM48,750. ii. Wages outstanding, RM636. iii. The insurance expense is for a 12 - month fire insurance policy which was purchased on 1 March 2019 for cash. iv. The long term loan was obtained on 1 July 2019. Interest on loan has not been paid for the year. V. Depreciation was to be provided: Motor vehicles 25% on cost Fixtures and fitting 12.5% on cost vi. The provision for doubtful debts should be adjusted to 5% of debtors. vii. The owner took goods worth RM150 for his private use which has not been accounted for in the books. Required: (a) Prepare income statement for the year ended 31st December 2019. (15 marks) (b) Prepare statement of financial position as at 31st December 2019. The following information was available on 31 December 2019: i. Inventory valued at cost, RM48,750. ii. Wages outstanding, RM636. iii. The insurance expense is for a 12 - month fire insurance policy which was purchased on 1 March 2019 for cash. iv. The long term loan was obtained on 1 July 2019. Interest on loan has not been paid for the year. V. Depreciation was to be provided: Motor vehicles 25% on cost Fixtures and fitting 12.5% on cost vi. The provision for doubtful debts should be adjusted to 5% of debtors. vii. The owner took goods worth RM150 for his private use which has not been accounted for in the books. Required: (a) Prepare income statement for the year ended 31st December 2019. (15 marks) (b) Prepare statement of financial position as at 31st December 2019.
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Certainly Lets break down the information provided i Inventory valued at cost RM48750 This means tha... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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