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(FIFO) basis in valuing its in was RM14,600 and the net re

(FIFO) basis in valuing its in was RM14,600 and the net re

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Additional information: The company uses First-In-First-Out (FIFO) basis in valuing its inventories. The cost of inventory as at 31 March 2022 was RM14,600 and the net realizable value was RM14,800. 1. 2. Telephone bills amounting to RM230 was still outstanding as at 31 March 2022. 3. Included in the total insurance paid, there was a payment of insurance in advance for two (2) months. 4. Depreciation is to be provided at 5% per annum on book value for motor vehicles and 10% per annum on cost for office equipment. 5. Part of interest on fixed deposit is yet to be received amounting to RM600. Inspection on sales invoice and receipts revealed that out of twelve debtors, only nine debtors managed to settle their accounts. The owner decided to regard the remaining debt of RM430 as uncollectible (using allowance method). 6. The allowance for doubtful debts was adjusted to 5% of the remaining receivables and allowance for discount allowable was at 4% of potential good customers. 7. The owner had rented out part of the building to a tenant on 1 September 2021. On the same day, the tenant paid rental amounting to RM4,800 for six (6) months until 28 February 2022. 8. Mr. Kachak had withdrawn RM1,800 worth of goods and RM400 cash for personal use and no record has been made in the account. 9. 10. The payment of principle loan from EON Bank and its interest for the month of December 2021 amounting to RM600 and RM250 respectively had been made on 28 December 2021. However, the transaction had not being recorded anywhere in the books. Required to prepare: c) Statement of Profit or Loss for the year ended 31 March 2022. (Show all workings) d) Statement of Financial Position as at 31 March 2022. (Show all workings)
Transcribed Image Text:Additional information: The company uses First-In-First-Out (FIFO) basis in valuing its inventories. The cost of inventory as at 31 March 2022 was RM14,600 and the net realizable value was RM14,800. 1. 2. Telephone bills amounting to RM230 was still outstanding as at 31 March 2022. 3. Included in the total insurance paid, there was a payment of insurance in advance for two (2) months. 4. Depreciation is to be provided at 5% per annum on book value for motor vehicles and 10% per annum on cost for office equipment. 5. Part of interest on fixed deposit is yet to be received amounting to RM600. Inspection on sales invoice and receipts revealed that out of twelve debtors, only nine debtors managed to settle their accounts. The owner decided to regard the remaining debt of RM430 as uncollectible (using allowance method). 6. The allowance for doubtful debts was adjusted to 5% of the remaining receivables and allowance for discount allowable was at 4% of potential good customers. 7. The owner had rented out part of the building to a tenant on 1 September 2021. On the same day, the tenant paid rental amounting to RM4,800 for six (6) months until 28 February 2022. 8. Mr. Kachak had withdrawn RM1,800 worth of goods and RM400 cash for personal use and no record has been made in the account. 9. 10. The payment of principle loan from EON Bank and its interest for the month of December 2021 amounting to RM600 and RM250 respectively had been made on 28 December 2021. However, the transaction had not being recorded anywhere in the books. Required to prepare: c) Statement of Profit or Loss for the year ended 31 March 2022. (Show all workings) d) Statement of Financial Position as at 31 March 2022. (Show all workings)
The following is the Trial Balance as at 31 March 2022 extracted from the general ledger of Handy Manny Enterprise which involved in the trading of hardware products in Shah Putra. The business is owned by Mr. Kachak. Debit Credit RM RM Capital 838,550 70,200 6,800 Loan from EON Bank Bank overdraft Land and building Motor vehicles Office equipment Accumulated depreciation: Motor vehicles Office equipment Accounts receivable and Account payable Fixed deposit Cash in hand Allowance for doubtful debt Inventory as at 1 April 2021 Purchases and Sales 450,000 360,000 170,000 54,000 17,000 9,500 6,700 32,000 4,200 1,100 11,600 41,200 1,600 500 87,330 2,100 Returns Transportation inwards 1,200 3,700 4,800 2,620 Discounts 800 Interest on fixed deposit Rental received Commission received Salary expenses Motor vehicles expenses Interest on loan Water and electricity Insurance expenses Telephone expenses 4,700 3,400 2,750 850 7,000 1,600 1,098,900 1,098,900
Transcribed Image Text:The following is the Trial Balance as at 31 March 2022 extracted from the general ledger of Handy Manny Enterprise which involved in the trading of hardware products in Shah Putra. The business is owned by Mr. Kachak. Debit Credit RM RM Capital 838,550 70,200 6,800 Loan from EON Bank Bank overdraft Land and building Motor vehicles Office equipment Accumulated depreciation: Motor vehicles Office equipment Accounts receivable and Account payable Fixed deposit Cash in hand Allowance for doubtful debt Inventory as at 1 April 2021 Purchases and Sales 450,000 360,000 170,000 54,000 17,000 9,500 6,700 32,000 4,200 1,100 11,600 41,200 1,600 500 87,330 2,100 Returns Transportation inwards 1,200 3,700 4,800 2,620 Discounts 800 Interest on fixed deposit Rental received Commission received Salary expenses Motor vehicles expenses Interest on loan Water and electricity Insurance expenses Telephone expenses 4,700 3,400 2,750 850 7,000 1,600 1,098,900 1,098,900
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