QI. Mrs Zenia, a sole trader, who runs a kitchen and cookware shop called Master Cooking...

 

 

 

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QI. Mrs Zenia, a sole trader, who runs a kitchen and cookware shop called "Master Cooking Enterprise". She would like to offer you a job as her junior accountant. Hence, she asked you to prepare a full set of financial statements before the recruitment to make sure that you are qualified. The following accounts have been extracted from Mrs Zenia's business records as at 30 June 2020. RM Саpital Drawings Sales 100,000 4,700 806,500 498,700 Purchases Retum inwards Retum outwards 20,500 30,000 Carriage expenses Office equipment Motor vehicles Premises Accumulated depreciation as at 1 July 2019: Office equipment Motor vehicles 12% Loan from Citibank 15,900 85,000 70,000 95,000 17,000 14,000 120,000 60,000 8,500 Cash at bank Cash in hand Rental expenses Utilities bills 43,600 26,400 24,000 Insurance Salaries and wages Interest on loan 55,700 14,400 16,800 Bad debts Discount allowed 37,600 Discount received 55,700 36,800 5,600 134,000 43,700 68,900 Commission received Allowance for doubtful debts as at 1 July 2019 Inventory as at 1 July 2019 Account receivables Account payables During preparation of financial statements, there are several issues were found and the adjustments of particular items are required. The following information must be taken into account: A debtor, Mr Edward made a full settlement of his account by cash and received 10% cash discount on the total of RM5,500. Meanwhile, an outstanding invoice totaled RM1,800 is uncollectable hence to be written off as bad debts. The (1) allowance for doubtful debts is expected to be 5% of outstanding account receivables. 01. (Continued) (2) The business was conducted at ground floor of the shop lot. Mrs Zenia was staying at the first floor with her family. The rental for the first floor is 3/5 of the total rental paid. (3) The office equipment is to be depreciated at 10% per annum on straight line method, whereas the motor vehicles are to be depreciated at 20% per annum on reducing balance method. No depreciation is to be provided on premises. (4) The total cash received from Mr Edward in (1) then was deposited into bank ассount. (5) An advance salary of RM2,500 was given to one of the employees and Mrs Zenia paid in advance the utilities bills amounted to RM550 for July 2020. No records have been made for these transactions in the account. (6) Mrs Zenia transferred from her personal savings account amounted to RM15,000 to business bank account. (7) 1/3 of the carriage expenses represent carriage of goods to customers. (8) Mrs Zenia carried out a physical inventory count on 30 June 2020 and revealed that closing inventory of RM108,900 at cost price and RM136,125 at market price. REQUIRED: Prepare journal entries for the transaction (1) – (6) above. (Narratives are not required). (a) (10 marks) (b) Prepare the Statement of Comprehensive Income for the year ended 30 June 2020 by using vertical format presentation. (16 marks) Prepare the Statement of Financial Position as at 30 June 2020 by using vertical format presentation. (c) (12 marks) With reference to Master Cooking Enterprise's events or transactions, identify and briefly explain any FOUR (4) accounting concepts and conventions that (12 marks) [Total: 50 marks) (d) affects the financial statements. QI. Mrs Zenia, a sole trader, who runs a kitchen and cookware shop called "Master Cooking Enterprise". She would like to offer you a job as her junior accountant. Hence, she asked you to prepare a full set of financial statements before the recruitment to make sure that you are qualified. The following accounts have been extracted from Mrs Zenia's business records as at 30 June 2020. RM Саpital Drawings Sales 100,000 4,700 806,500 498,700 Purchases Retum inwards Retum outwards 20,500 30,000 Carriage expenses Office equipment Motor vehicles Premises Accumulated depreciation as at 1 July 2019: Office equipment Motor vehicles 12% Loan from Citibank 15,900 85,000 70,000 95,000 17,000 14,000 120,000 60,000 8,500 Cash at bank Cash in hand Rental expenses Utilities bills 43,600 26,400 24,000 Insurance Salaries and wages Interest on loan 55,700 14,400 16,800 Bad debts Discount allowed 37,600 Discount received 55,700 36,800 5,600 134,000 43,700 68,900 Commission received Allowance for doubtful debts as at 1 July 2019 Inventory as at 1 July 2019 Account receivables Account payables During preparation of financial statements, there are several issues were found and the adjustments of particular items are required. The following information must be taken into account: A debtor, Mr Edward made a full settlement of his account by cash and received 10% cash discount on the total of RM5,500. Meanwhile, an outstanding invoice totaled RM1,800 is uncollectable hence to be written off as bad debts. The (1) allowance for doubtful debts is expected to be 5% of outstanding account receivables. 01. (Continued) (2) The business was conducted at ground floor of the shop lot. Mrs Zenia was staying at the first floor with her family. The rental for the first floor is 3/5 of the total rental paid. (3) The office equipment is to be depreciated at 10% per annum on straight line method, whereas the motor vehicles are to be depreciated at 20% per annum on reducing balance method. No depreciation is to be provided on premises. (4) The total cash received from Mr Edward in (1) then was deposited into bank ассount. (5) An advance salary of RM2,500 was given to one of the employees and Mrs Zenia paid in advance the utilities bills amounted to RM550 for July 2020. No records have been made for these transactions in the account. (6) Mrs Zenia transferred from her personal savings account amounted to RM15,000 to business bank account. (7) 1/3 of the carriage expenses represent carriage of goods to customers. (8) Mrs Zenia carried out a physical inventory count on 30 June 2020 and revealed that closing inventory of RM108,900 at cost price and RM136,125 at market price. REQUIRED: Prepare journal entries for the transaction (1) – (6) above. (Narratives are not required). (a) (10 marks) (b) Prepare the Statement of Comprehensive Income for the year ended 30 June 2020 by using vertical format presentation. (16 marks) Prepare the Statement of Financial Position as at 30 June 2020 by using vertical format presentation. (c) (12 marks) With reference to Master Cooking Enterprise's events or transactions, identify and briefly explain any FOUR (4) accounting concepts and conventions that (12 marks) [Total: 50 marks) (d) affects the financial statements.

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wers sorry photo of this balance sheet is half half upload due to pic upload error Notes Tax ... View the full answer