Question 1 Yellow Trading sells various brands of lamps and lights. The following is the trial balance of the company as at 31 December 2021: Credit (RM) Wages and salaries Return inwards/ return outwards Debit (RM) 22,400 13,400 15,400 13,200 1,081,800 Rent received 841,800 326,800 Purchases/Sales Motor vehicles (at cost) Bank loan (repayable on 2028) Inventory (as at 1 January 2021) Insurance 55,600 20,700 6,000 Equipment (at cost) Drawings Debtors /Creditors 45,000 2,000 120,000 150,000 Cash 10,900 Carriage inwards Capital (as at January 2021) 2,500 178,000 Bank 90,000 9,180 Bad debts expenses Allowance for doubtful debts (as at 1 January 2021) Administration expenses 3,500 24,000 Accumulated depreciation for motor vehicles Accumulated depreciation for equipment 32,680 4,500 1,534,680 1,534,680 Additional information as at 31 December 2021: • Inventory as at 31 December 2021 was valued at RM 15,000. • Drawings of cash done by the owner amounting to RM 500 during the accounting year. These transactions had not been updated in the accounting books of the business. • Depreciation for all non-current assets that the business held are to be calculated based on reducing balance method at a rate of 10% per annum. • Allowance for doubtful debts are to be provided at the rate of 5% per annum on net debtors' amount. Required to prepare: (a) Income statement for the year ended 31 December 2021. (b) Balance sheet as at 31 December 2021.
Question 1 Yellow Trading sells various brands of lamps and lights. The following is the trial balance of the company as at 31 December 2021: Credit (RM) Wages and salaries Return inwards/ return outwards Debit (RM) 22,400 13,400 15,400 13,200 1,081,800 Rent received 841,800 326,800 Purchases/Sales Motor vehicles (at cost) Bank loan (repayable on 2028) Inventory (as at 1 January 2021) Insurance 55,600 20,700 6,000 Equipment (at cost) Drawings Debtors /Creditors 45,000 2,000 120,000 150,000 Cash 10,900 Carriage inwards Capital (as at January 2021) 2,500 178,000 Bank 90,000 9,180 Bad debts expenses Allowance for doubtful debts (as at 1 January 2021) Administration expenses 3,500 24,000 Accumulated depreciation for motor vehicles Accumulated depreciation for equipment 32,680 4,500 1,534,680 1,534,680 Additional information as at 31 December 2021: • Inventory as at 31 December 2021 was valued at RM 15,000. • Drawings of cash done by the owner amounting to RM 500 during the accounting year. These transactions had not been updated in the accounting books of the business. • Depreciation for all non-current assets that the business held are to be calculated based on reducing balance method at a rate of 10% per annum. • Allowance for doubtful debts are to be provided at the rate of 5% per annum on net debtors' amount. Required to prepare: (a) Income statement for the year ended 31 December 2021. (b) Balance sheet as at 31 December 2021.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 76E: Ratio Analysis The following information was taken from Nash Inc.s trial balances as of December 31,...
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