Sherry owns a boutique, Mutiara Collection, at KLCC. The boutique sells traditional costumes and accessories. The...

 

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Sherry owns a boutique, Mutiara Collection, at KLCC. The boutique sells traditional costumes and accessories. The following balances were extracted from the book of Mutiara Collection Question 8 as at 31 December 20x7. RM Inventory as at 1 January 20x7 40,000 Returns inwards 4,000 Returns outwards 6,000 Carriage inwards 7,000 Duty on purchases 5,600 Carriage outwards 4,400 Purchases 160,000 Sales 300,000 Discount received 6,400 Insurance on purchases 5,400 Commission received 4,600 Shop rental 28,000 Salary 33,000 Salesman commission 2,600 Discount allowed 5,200 Interest expense 5,000 Allowance for doubtful debts 1,000 Allowance for depreciation: Delivery van 28,000 - Costumes cabinet 12,000 - Office equipment 10,000 Delivery van 70,000 Costumes cabinet 60,000 Office equipment 50,000 RM 20,000 Accounts receivable 40,000 Accounts payable 10,000 Telephone and electricity 8,000 Insurance 1,000 Bad debts 50,000 Cash at bank 3,000 Petty cash Loan from CIMB (10% p.a.) 100,000 600 Drawings Capital 64,800 The following adjustments need to be considered as at 31 December 20x7: 1 The shop rental is RM2,000 per month. Sherry paid rental in advance for 2 months. 2 The salary for the fashion designer amounting to RM3,000 was still unpaid. 3 Interest on loan from CIMB for half a year was outstanding. 4 One of the customers was declared bankrupt and unable to settle his debts. The customer still owed RM4,000. 5 Allowance for doubtful debts on sundry debtors need to be provided at 5% of net debtors. 6 Depreciation on a yearly basis is to be provided as follows: 20% using reducing balance method 5% using straight-line method 15% using straight-line method Delivery van Costumes cabinet Office equipment 7 Sherry withdrew petty cash amounting to RM200 and took a pair of bracelets amounting to RM1,000 for her daughter's wedding. 8 Inventory as at 31 December 20x6 was RM32,000. Required: (a) Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 20x7, (b) Prepare the Statement of Financial Position as at 31 December 20x7. Sherry owns a boutique, Mutiara Collection, at KLCC. The boutique sells traditional costumes and accessories. The following balances were extracted from the book of Mutiara Collection Question 8 as at 31 December 20x7. RM Inventory as at 1 January 20x7 40,000 Returns inwards 4,000 Returns outwards 6,000 Carriage inwards 7,000 Duty on purchases 5,600 Carriage outwards 4,400 Purchases 160,000 Sales 300,000 Discount received 6,400 Insurance on purchases 5,400 Commission received 4,600 Shop rental 28,000 Salary 33,000 Salesman commission 2,600 Discount allowed 5,200 Interest expense 5,000 Allowance for doubtful debts 1,000 Allowance for depreciation: Delivery van 28,000 - Costumes cabinet 12,000 - Office equipment 10,000 Delivery van 70,000 Costumes cabinet 60,000 Office equipment 50,000 RM 20,000 Accounts receivable 40,000 Accounts payable 10,000 Telephone and electricity 8,000 Insurance 1,000 Bad debts 50,000 Cash at bank 3,000 Petty cash Loan from CIMB (10% p.a.) 100,000 600 Drawings Capital 64,800 The following adjustments need to be considered as at 31 December 20x7: 1 The shop rental is RM2,000 per month. Sherry paid rental in advance for 2 months. 2 The salary for the fashion designer amounting to RM3,000 was still unpaid. 3 Interest on loan from CIMB for half a year was outstanding. 4 One of the customers was declared bankrupt and unable to settle his debts. The customer still owed RM4,000. 5 Allowance for doubtful debts on sundry debtors need to be provided at 5% of net debtors. 6 Depreciation on a yearly basis is to be provided as follows: 20% using reducing balance method 5% using straight-line method 15% using straight-line method Delivery van Costumes cabinet Office equipment 7 Sherry withdrew petty cash amounting to RM200 and took a pair of bracelets amounting to RM1,000 for her daughter's wedding. 8 Inventory as at 31 December 20x6 was RM32,000. Required: (a) Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 20x7, (b) Prepare the Statement of Financial Position as at 31 December 20x7.

Answer rating: 100% (QA)

Solution for both the requirements are given below Ans aProfit Loss Ac for the year ended 31st Decem... View the full answer