Open with Google DocsThe following trial balance was extracted from the books of Fasuha Trading as at 31December 2020.DebitRMParticularsCreditRM12,2509,1503,600Office equipmentMotor vehiclesFumitureAccumulated depreciation as at 1 January 2020:Office equipmentMotor vehiclesFumiture2,4501,3731,0603,63229,6086,860Account receivables and account payablesСapital6% loan to RaraPurchases and salesDiscountAdvertisingCash in handProvision for doubtful debts2,50019,110 31,5602151754,2501,6303007408,000700Commission received6% loan from Afina Bank (taken from 1 May 2020)1,2001,9001,2604,0051,0005,270210250610915110RentDrawingsMaintenance and petrolStaff's wagesInsuranceCash at bankCarriage inwardsCarriage outwardsTelephone and electricityDuties on purchasesReturns1123.415Inventory as at 1 January 202079.71079.710TOTALPage718РОСОSHOT ON POCO F2 PRO The following adjustment are to be taken into account:a. Inventory as at 31 December 2020 was valued at RM2,600b. The interest on the loan taken from Afina bank was not recorded in the accounts.c. Prepaid RM300 of the insurance premiumsd. Prepaid RM125 of the telephone and electricity bills.e. Depreciation was provided using the rates as follows:i. Office equipmentil. Motor vehiclesii. Furniture20% p.a on carrying value15% p.a on cost10% p.a on costf. Bad debts of RM110 to be written offg. The provision for doubtful debts was to be adjusted to 2.5% of the remainingaccount receivablesh. 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 theyear ended 31 December 2020.b) Prepare the Statement of Financial Position as at 31 December 2020PageBIBРОСОSHOT ON POCO F2 PRO

he 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 il. Motor vehicles iii. Furniture 20% p.a on carrying value 15% p.a on cost 10% p.a on cost 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

he 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 il. Motor vehicles iii. Furniture 20% p.a on carrying value 15% p.a on cost 10% p.a on cost 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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 68BPSB

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How to do the post-adjustment trial balance of Fling Incorporated for the financial year ended 31 December 2021. Motor vehicles50 000 DtAccumulated depreciation on motor vehicles5 000 CrDebtors control45 000 DtBank: one 7 550 DtBank two:650 CrEquipment25 000 DtAccumulated depreciation on equipment2 100 CrCreditors control15 600 CrShare capital3 000 CrRetained earnings31 800 CrRental income13 000 CrInventory: Finished products8 500 DtSale of goods135 000 CrWater and electricity8 800 DtSalaries and wages55 000 CrPrinting and stationery6 300 Cr206 150(206 150) Adjustments:1. Rental income earned monthly amounts to R1 000.2. Printing and stationery on hand as at 31 December 2021 amounted to R800.3. Cleaning expenses of R250 was incorrectly posted to the salaries and wages account.4. Discount of R150 was given to a debtor who…
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