The following trial balance has been extracted from the ledger of Mr. Danial, a sole trader:

Trial Balance as at 31 May 2021

	Debit	Credit
	RM	RM
Sales		138,200
Purchases	82,350
Carriage	5,144
Drawings	7,800
Rent, rates and insurance	6,622
Postage and stationery	3,000
Advertising	1,330
Salaries and wages	26,420
Bad debts	877
Accounts receivable	12,120
Accounts payable		6,477
Cash in hand	177
Cash at bank	1,000
Inventory as at 1 June 2020	11,927
Equipment (at cost)	58,000
Equipment accumulated depreciation		19,000
Capital	___	53,090
	216,767	216,767

The following additional information as at 31 May 2021 is available:

1. Rent is accrued by RM210.
2. Rates have been prepaid by RM880.
3. RM2,211 of carriage represents carriage inwards on purchases.
4. Equipment is to be depreciated at 15% per annum using the straight line method.
5. Inventory at the close of business has been valued at RM13,550.

Required:

Prepare the income statement for the year ended 31 May 2021 and a statement of financial position as at that date.

Answer rating: 100% (QA)

In The book of Daniel Income Statement For the year ended 31 May 2021 Particular Sales Amount RM 138... View the full answer