4. Mr Jamil, a trader, completed a year’s trading on 31 October 2020. The following balances were extracted from the business records: Particulars Debit RM Credit RM Purchases and Sales 52,650 160,720 Sales returns and purchases returns 340 1,213 Land 100,000 Machines 140,000 Office equipment 30,000 Vehicles 75,000 Provision for depreciation at 1 November 2019: Machines Office equipment Vehicles 28,000 16,800 28,000 Office expenses 11,500 Cash in hand 175 Selling expenses 8,820 Drawings 6,000 Wages 48,000 Stock at 1 Nov 2019 2,500 Provision for doubtful debts as at 1 Nov 2019 650 Debtors and creditors 14,500 8,600 Repairs 2,370 Bad debts 240 Jamil – Capital account as at 1 Nov 2019 251,512 Cash at bank 3,400 TOTAL 495,495 495,495 Mr Jamil also provides the following information at 31 October 2020: i. Stock was valued at RM2,750 The provision for doubtful debts should be maintained at 5% of debtors. iii. Wages accrued amounted to RM1,500 Office expenses prepaid amounted to RM342 Mr. Jamil had taken RM1,200 worth of goods from stock for personal use during the year. This has not been recorded. Depreciation policies were: Machines - 20% straight line method Office equipment - 20% straight line method Vehicles - 30% reducing balance method Required: a) Statement Profit or Loss and Other Comprehensive Income for the year Ended 31 October 2020. b) Statement of Financial Position as at 31 October 2020.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 3E: Visual Inspection Noble Companys accounting records provided the following changes in account...

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4. Mr Jamil, a trader, completed a year’s trading on 31 October 2020. The following balances were extracted from the business records:

Particulars	Debit RM	Credit RM
Purchases and Sales	52,650	160,720
Sales returns and purchases returns	340	1,213
Land	100,000
Machines	140,000
Office equipment	30,000
Vehicles	75,000
Provision for depreciation at 1 November 2019: Machines Office equipment Vehicles		28,000 16,800 28,000
Office expenses	11,500
Cash in hand	175
Selling expenses	8,820
Drawings	6,000
Wages	48,000
Stock at 1 Nov 2019	2,500
Provision for doubtful debts as at 1 Nov 2019		650
Debtors and creditors	14,500	8,600
Repairs	2,370
Bad debts	240
Jamil – Capital account as at 1 Nov 2019		251,512
Cash at bank	3,400
TOTAL	495,495	495,495

Mr Jamil also provides the following information at 31 October 2020: i. Stock was valued at RM2,750

The provision for doubtful debts should be maintained at 5% of debtors. iii. Wages accrued amounted to RM1,500
Office expenses prepaid amounted to RM342
Mr. Jamil had taken RM1,200 worth of goods from stock for personal use during the year. This has not been recorded.
Depreciation policies were:

Machines - 20% straight line method

Office equipment - 20% straight line method

Vehicles - 30% reducing balance method

Required:

a) Statement Profit or Loss and Other Comprehensive Income for the year Ended 31 October 2020.
b) Statement of Financial Position as at 31 October 2020.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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