After 3 years of operating, you and the partners has agreed to expand the busincss by...
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After 3 years of operating, you and the partners has agreed to expand the busincss by inserting new capital. In order to do so, you need to know the business profit/loss and financial position. The following is the trial balance of prepared by the account clerk. Trial Balance as at 31 December 2021 Debit Credit (RM) (RM) 204,650 Sales Purchase Return Inwards & Return Outwards 100,734 3,670 1,060 Carriage outwards Rent expense Motor vehicle expense Office expenses Utilities expenses Salary 10% Fixed deposit Building Furniture Accumulated depreciation: Building Furniture 4,700 14,500 5,050 2,100 3,430 58,000 11,000 200,000 75,000 40,000 15,000 Cash 27,186 Bank 44,300 23,530 Account Receivable Capital (all partners-refer to section A) Retained Earnings 10% Loan from CIMB Bank 210,000 60,000 51,000 49,640 Account payable Inventory as at 1 January 2021 Commissions paid & commission received 56,000 2,300 2,500 1,200 4,000 1,500 640,700 6,200 3,150 Discount allowed & discount received Interest on loan Drawings by partner/s Bad debt ТОТAL 640,700 Additional Information: 1. Closing inventory as at 31 December 2021 is RM50,000. 2. Salaries for partners are not yet recorded in the system. 3. The partners have agreed to calculate the business goodwill using weighted average profit. Goodwill is valued at 2 years of purchase of weighted average profit. The following are the information of the average annual sales of the business. Year RM 2019 100,000 2020 120,000 2021 200,000 4. Tasks: b) Prepare the Statement of comprehensive income for the year ended 31 December 2021. c) Statement of financial position as at 31 December 2021 After 3 years of operating, you and the partners has agreed to expand the busincss by inserting new capital. In order to do so, you need to know the business profit/loss and financial position. The following is the trial balance of prepared by the account clerk. Trial Balance as at 31 December 2021 Debit Credit (RM) (RM) 204,650 Sales Purchase Return Inwards & Return Outwards 100,734 3,670 1,060 Carriage outwards Rent expense Motor vehicle expense Office expenses Utilities expenses Salary 10% Fixed deposit Building Furniture Accumulated depreciation: Building Furniture 4,700 14,500 5,050 2,100 3,430 58,000 11,000 200,000 75,000 40,000 15,000 Cash 27,186 Bank 44,300 23,530 Account Receivable Capital (all partners-refer to section A) Retained Earnings 10% Loan from CIMB Bank 210,000 60,000 51,000 49,640 Account payable Inventory as at 1 January 2021 Commissions paid & commission received 56,000 2,300 2,500 1,200 4,000 1,500 640,700 6,200 3,150 Discount allowed & discount received Interest on loan Drawings by partner/s Bad debt ТОТAL 640,700 Additional Information: 1. Closing inventory as at 31 December 2021 is RM50,000. 2. Salaries for partners are not yet recorded in the system. 3. The partners have agreed to calculate the business goodwill using weighted average profit. Goodwill is valued at 2 years of purchase of weighted average profit. The following are the information of the average annual sales of the business. Year RM 2019 100,000 2020 120,000 2021 200,000 4. Tasks: b) Prepare the Statement of comprehensive income for the year ended 31 December 2021. c) Statement of financial position as at 31 December 2021
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Statemerdof Income for the yearr ended 3I dec 202y Do Paoticulars To opewing ... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
Posted Date:
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