1. Prepare an Income Statement for the year ended 31 December 2021.
2. Prepare a Statement of Financial Position as at 31 December 2021.

 

1. 
   

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Inventory on 1 January 2021 Cash Bank Accounts receivable Accounts payable Capital Shop premises Shop fittings 5 year 10% p.a. bank loan Sales Return inwards Purchases Return outwards Carriage inwards Carriage outwards Drawings Discount allowed Discount received Utilities expenses Insurance expenses Interest expenses Wages and salaries Additional information: i. ii. iii. iv. . < vi. vii. Rihana Trading Trial Balance as at 31 December 2021 viii. Inventory as at 31 December 2021 amounting to RM30,000. Interest on bank loan for half a year was unpaid. Debit (RM) 45,000 5,000 4,000 6,000 100,000 30,000 3,000 220,000 400 500 600 200 1,800 900 Credit (RM) 12,000 84,050 25,000 320,000 2,000 600 1,250 25,000 443.650 443.650 Insurance expense included RM100 which was for the next accounting period. Utilities estimated to be RM160 was expected to be paid for December 2021 but the bills were not yet received. The owner took RM500 of the goods from the shop for personal use. The owner withdrew cash of RM300 for a dinner celebration with his family. Bank interest of RM80 was estimated to be earned on the bank balances of the business but this has not yet been received or recorded by the firm. It was decided to depreciate shop fittings at 10% per annum on straight line method. Inventory on 1 January 2021 Cash Bank Accounts receivable Accounts payable Capital Shop premises Shop fittings 5 year 10% p.a. bank loan Sales Return inwards Purchases Return outwards Carriage inwards Carriage outwards Drawings Discount allowed Discount received Utilities expenses Insurance expenses Interest expenses Wages and salaries Additional information: i. ii. iii. iv. . < vi. vii. Rihana Trading Trial Balance as at 31 December 2021 viii. Inventory as at 31 December 2021 amounting to RM30,000. Interest on bank loan for half a year was unpaid. Debit (RM) 45,000 5,000 4,000 6,000 100,000 30,000 3,000 220,000 400 500 600 200 1,800 900 Credit (RM) 12,000 84,050 25,000 320,000 2,000 600 1,250 25,000 443.650 443.650 Insurance expense included RM100 which was for the next accounting period. Utilities estimated to be RM160 was expected to be paid for December 2021 but the bills were not yet received. The owner took RM500 of the goods from the shop for personal use. The owner withdrew cash of RM300 for a dinner celebration with his family. Bank interest of RM80 was estimated to be earned on the bank balances of the business but this has not yet been received or recorded by the firm. It was decided to depreciate shop fittings at 10% per annum on straight line method.

Answer rating: 100% (QA)

To prepare the financial statements for Rihana Trading with the adjustments provided we will first a... View the full answer