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Commission received 740 6% loan from Afina Bank (taken from 1 May 2020) 8,000 Rent 1,200 1,900 1.260 4,005 1.000 700 Drawings Maintenance and petrol Staff's wages Insurance Cash at bank 5.270 Cariage inwards Carriage outwards Telephone and electricity Duties on purchases Returns Inventory as at 1 January 2020 210 250 610 915 110 112 TOTAL 3,415 79,710 79,710 The following adjustment are to be taken into account: a. Inventory as at 31 December 2020 was valued at RM2,600 b. The interest on the loan taken from Afina bank was not recorded in the accounts. c. Prepaid RM300 of the insurance premiums d. Prepaid RM125 of the telephone and electricity bills. e. Depreciation was provided using the rates as follows: i. Office equipment i. Motor vehicles i. Furniture f. Bad debts of RM110 to be written off 20% p.a on carrying value 15% p.a on cost 10% p.a on cost g. The provision for doubtful debts was to be adjusted to 25% of the remaining account receivables h. Fasuha had drawn RM150 cash from the business to spend on his son's birthday. Required: a) Prepare the Statement Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020. b) Prepare the Statement of Financial Position as at 31 December 2020

Commission received 740 6% loan from Afina Bank (taken from 1 May 2020) 8,000 Rent 1,200 1,900 1.260 4,005 1.000 700 Drawings Maintenance and petrol Staff's wages Insurance Cash at bank 5.270 Cariage inwards Carriage outwards Telephone and electricity Duties on purchases Returns Inventory as at 1 January 2020 210 250 610 915 110 112 TOTAL 3,415 79,710 79,710 The following adjustment are to be taken into account: a. Inventory as at 31 December 2020 was valued at RM2,600 b. The interest on the loan taken from Afina bank was not recorded in the accounts. c. Prepaid RM300 of the insurance premiums d. Prepaid RM125 of the telephone and electricity bills. e. Depreciation was provided using the rates as follows: i. Office equipment i. Motor vehicles i. Furniture f. Bad debts of RM110 to be written off 20% p.a on carrying value 15% p.a on cost 10% p.a on cost g. The provision for doubtful debts was to be adjusted to 25% of the remaining account receivables h. Fasuha had drawn RM150 cash from the business to spend on his son's birthday. Required: a) Prepare the Statement Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020. b) Prepare the Statement of Financial Position as at 31 December 2020

Intermediate Accounting: Reporting And Analysis
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 2P
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Adjustment financial statement

E © T O Commission received 6% loan from Afina Bank (taken from 1 May 2020) 740 8,000 Rent 1,200 1,900 1,260 4,005 1,000 5,270 210 700 Drawings Maintenance and petrol Staff's wages Insurance Cash at bank Carriage inwards Carriage outwards Telephone and electricity Duties on purchases 250 610 915 Returns 110 112 Inventory as at 1 January 2020 TOTAL 3,415 79.710 79.710 The following adjustment are to be taken into account: a. Inventory as at 31 December 2020 was valued at RM2,600 b. The interest on the loan taken from Afina bank was not recorded in the accounts. c. Prepaid RM300 of the insurance premiums d. Prepaid RM125 of the telephone and electricity bills. e. Depreciation was provided using the rates as follows: i. Office equipment 20% p.a on carrying value 15% p.a on cost 10% p.a on cost ii. Motor vehicles ii. Furniture f. Bad debts of RM110 to be written off g. The provision for doubtful debts was to be adjusted to 2.5% of the remaining account receivables h. Fasuha had drawn RM150 cash from the business to spend on his son's birthday. Required: a) Prepare the Statement Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020. b) Prepare the Statement of Financial Position as at 31 December 2020 Filters Add a caption.
Transcribed Image Text:E © T O Commission received 6% loan from Afina Bank (taken from 1 May 2020) 740 8,000 Rent 1,200 1,900 1,260 4,005 1,000 5,270 210 700 Drawings Maintenance and petrol Staff's wages Insurance Cash at bank Carriage inwards Carriage outwards Telephone and electricity Duties on purchases 250 610 915 Returns 110 112 Inventory as at 1 January 2020 TOTAL 3,415 79.710 79.710 The following adjustment are to be taken into account: a. Inventory as at 31 December 2020 was valued at RM2,600 b. The interest on the loan taken from Afina bank was not recorded in the accounts. c. Prepaid RM300 of the insurance premiums d. Prepaid RM125 of the telephone and electricity bills. e. Depreciation was provided using the rates as follows: i. Office equipment 20% p.a on carrying value 15% p.a on cost 10% p.a on cost ii. Motor vehicles ii. Furniture f. Bad debts of RM110 to be written off g. The provision for doubtful debts was to be adjusted to 2.5% of the remaining account receivables h. Fasuha had drawn RM150 cash from the business to spend on his son's birthday. Required: a) Prepare the Statement Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020. b) Prepare the Statement of Financial Position as at 31 December 2020 Filters Add a caption.
D © T 5. The following trial balance was extracted from the books of Fasuha Trading as at 31 December 2020. Particulars Debit Credit RM RM Office equipment Motor vehicles Furniture Accumulated depreciation as at 1 January 2020: Office equipment Motor vehicles 12,250 9,150 3,600 2,450 1,373 1,060 Furniture Account receivables and account payables Capital 6% loan to Rara Purchases and sales 6,860 3,632 29,608 2,500 19,110 31,560 Discount 215 175 Advertising Cash in hand Provision for doubtful debts Commission received 6% loan from Afina Bank (taken from 1 May 2020) 4,250 1,630 300 740 8,000 700 Rent Drawings Maintenance and petrol Staff's wages Insurance Cash at bank Carriage inwards Carriage outwards Telephone and electricity Duties on purchases Returns Inventory as at 1 January 2020 1,200 1,900 1,260 4,005 1,000 5,270 210 250 610 915 110 112 3,415 79,710 79,710 TOTAL The following adjustment are to be taken into account: a. Inventory as at 31 December 2020 was valued at RM2,600 b. The interest on the loan taken from Afina bank was not recorded in the accounts. c. Prepaid RM300 of the insurance premiums d. Prepaid RM125 of the telephone and electricity bills. e. Depreciation was provided using the rates as follows: i. Office equipment ii. Motor vehicles ii. Furniture 20% p.a on carrying value 15% p.a on cost 10% p.a on cost f. Bad debts of RM110 to be writ g. The provision for doubtful deats was to be adjusted to 2.5% of the remaining account receivables h. Fasuha had drawn RM150 cash from the business to spend on his son's birthd Required: Add a caption.
Transcribed Image Text:D © T 5. The following trial balance was extracted from the books of Fasuha Trading as at 31 December 2020. Particulars Debit Credit RM RM Office equipment Motor vehicles Furniture Accumulated depreciation as at 1 January 2020: Office equipment Motor vehicles 12,250 9,150 3,600 2,450 1,373 1,060 Furniture Account receivables and account payables Capital 6% loan to Rara Purchases and sales 6,860 3,632 29,608 2,500 19,110 31,560 Discount 215 175 Advertising Cash in hand Provision for doubtful debts Commission received 6% loan from Afina Bank (taken from 1 May 2020) 4,250 1,630 300 740 8,000 700 Rent Drawings Maintenance and petrol Staff's wages Insurance Cash at bank Carriage inwards Carriage outwards Telephone and electricity Duties on purchases Returns Inventory as at 1 January 2020 1,200 1,900 1,260 4,005 1,000 5,270 210 250 610 915 110 112 3,415 79,710 79,710 TOTAL The following adjustment are to be taken into account: a. Inventory as at 31 December 2020 was valued at RM2,600 b. The interest on the loan taken from Afina bank was not recorded in the accounts. c. Prepaid RM300 of the insurance premiums d. Prepaid RM125 of the telephone and electricity bills. e. Depreciation was provided using the rates as follows: i. Office equipment ii. Motor vehicles ii. Furniture 20% p.a on carrying value 15% p.a on cost 10% p.a on cost f. Bad debts of RM110 to be writ g. The provision for doubtful deats was to be adjusted to 2.5% of the remaining account receivables h. Fasuha had drawn RM150 cash from the business to spend on his son's birthd Required: Add a caption.
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