The following trial balance had ben been extracted from the book of Shen You for the year
Question:
The following trial balance had ben been extracted from the book of Shen You for the year ended 31 October 2021.
RM | RM | |
Accounts receivable and payables | 435,000 | 325,000 |
Bank overdraft | 18,200 | |
Inventory at 1 November 2020 | 85,000 | |
Sales | 1,025,400 | |
Purchases | 673,000 | |
Returns inwards and outwards | 5,400 | 13,000 |
Carriage | 9,600 | |
Salaries and wages | 220,000 | |
Rent | 33,800 | |
Commission received | 18,700 | |
Bad debts | 4,680 | |
Plant and machinery | 600,000 | |
Motor vehicles | 300,000 | |
Accumulated depreciation: Plant andmachinery Motor vehicles | 120,000 57,000 | |
Allowance for doubtful debts | 2,700 | |
Cash in hand | 3,100 | |
Capital | 849,580 | |
Drawings | 60,000 | |
2,429,580 | 2,429,580 |
Additional notes:
- Inventory at the cost of business has been valued at RM126,000at market price.
- No records for RM2,000 of goods withdrawn for personal use.
- RM4,100 of carriage represents carriage inwards on purchases.
- The allowance for doubtful debts is to be adjusted to 5% of accounts receivable.
- Salaries in arrears RM10,000.
- The amount shown for rent on the trial balance includes a rent paid of RM4,200, which represents the annual rent to 28 February2022.
- Depreciation is written off non-current assets as follows: Plant and machinery at 10% per annum on cost
Motor vehicle at 20%per annum on reducing balance basis
Required:
- Prepare the income statement for Shen You for the year ended 31October 2021
Prepare a balance sheet for Shen You as at 31 October 2021.
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker