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: Stock was valued at RM2,750 The provision for doubtful debts should be maintained at 5% of Wages accrued amounted to RM1,500 Office expenses prepaid amounted to RM342 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: Statement Profit or Loss and Other Comprehensive Income for the year Ended 31 October 2020 Statement of Financial Position as at 31 October 2020
- 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 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 |
|
|
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:
- Stock was valued at RM2,750
- The provision for doubtful debts should be maintained at 5% of
- Wages accrued amounted to RM1,500
- Office expenses prepaid amounted to RM342
- 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%
Required:
- Statement Profit or Loss and Other Comprehensive Income for the year Ended 31 October 2020
Statement of Financial Position as at 31 October 2020
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