The following trial balance had ben been extracted from the book of Shen You for the year ended 31 October 2021.

	RM	RM
Accounts receivable and payables	435,000	325,000
Bank overdraft		18,200
Inventory at 1 November 2020	85,000
Sales		1,025,400
Purchases	673,000
Returns inwards and outwards	5,400	13,000
Carriage	9,600
Salaries and wages	220,000
Rent	33,800
Commission received		18,700
Bad debts	4,680
Plant and machinery	600,000
Motor vehicles	300,000
Accumulated depreciation: Plant andmachinery Motor vehicles		120,000 57,000
Allowance for doubtful debts		2,700
Cash in hand	3,100
Capital		849,580
Drawings	60,000
	2,429,580	2,429,580

Additional notes:

1. Inventory at the cost of business has been valued at RM126,000at market price.
2. No records for RM2,000 of goods withdrawn for personal use.
3. RM4,100 of carriage represents carriage inwards on purchases.
4. The allowance for doubtful debts is to be adjusted to 5% of accounts receivable.
5. Salaries in arrears RM10,000.
6. The amount shown for rent on the trial balance includes a rent paid of RM4,200, which represents the annual rent to 28 February2022.
7. Depreciation is written off non-current assets as follows: Plant and machinery at 10% per annum on cost

Motor vehicle at 20%per annum on reducing balance basis

 

Required:

1. Prepare the income statement for Shen You for the year ended 31October 2021

Prepare a balance sheet for Shen You as at 31 October 2021. 

Answer rating: 100% (QA)

Working Calculation of Depreciation For pla... View the full answer