Question: Question 3 NOTE : PLS CAN I HAVE A NEAT HAND WRITTING OR DONE IN LAPTOP AS I CANT UNDERSTAND SOME BAD HANDWRITTING . THANK
Question 3
NOTE : PLS CAN I HAVE A NEAT HAND WRITTING OR DONE IN LAPTOP AS I CANT UNDERSTAND SOME BAD HANDWRITTING . THANK YOU VERY MUCH I DO APPRECIATE YOUR TIME AND EFFORT
Aroma Trading is a sundry shop business owned by Mr Amin. The following trial balance for his business as at 31 December 2018 was extracted from his books:
Aroma Trading
Trial Balance as at 31 December 2019
| Debit (RM) | Credit (RM) | |
| Inventory on 1 January 2019 | 45,000 | |
| Cash | 950 | |
| Bank | 4,000 | |
| Accounts receivable | 6,000 | |
| Accounts payable | 12,000 | |
| Capital | 80,000 | |
| Shop premises | 100,000 | |
| Shop fittings | 30,000 | |
| 5 year 10% p.a. bank loan | 25,000 | |
| Sales | 320,000 | |
| Return inwards | 3,000 | |
| Purchases | 220,000 | |
| Return outwards | 2,000 | |
| Carriage inwards | 400 | |
| Carriage outwards | 500 | |
| Drawings | 600 | |
| Discount allowed | 200 | |
| Discount received | 600 | |
| Utilities expenses | 1,800 | |
| Insurance expenses | 900 | |
| Interest on loan | 1,250 | |
| Wages and salaries | 25,000 | |
| 439,600 | 439,600 |
Additional information:
- Inventory as at 31 December 2019 amounting to RM38,000.
- Interest on bank loan for half a year was unpaid.
- Insurance expense included RM100 which was for the next accounting period.
- Utilities estimated to be RM160 was expected to be paid for December 2018 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 and shop premises at 15% per annum using straight line method.
- Provision for doubtful debts is estimated to be at 5% of account receivable.
Required:
- Prepare a Statement of profit and loss for the year ended 31 December 201.9
(15 Marks)
- Prepare a Statement of Financial Position as at 31 December 2019.
(15 Marks)
(Total: 30 Marks)
NOTE : PLS CAN I HAVE A NEAT HAND WRITTING OR DONE IN LAPTOP AS I CANT UNDERSTAND SOME BAD HANDWRITTING . THANK YOU VERY MUCH
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