Required: [Dikehendaki:] Prepare statement of cash flow for ShafNita Sdn. Bhd. for the year ended 31 December 2020. (Sediakan penyata aliran tunai untuk ShafNita Sdn. Bhd. bagi tahun berakhir 31 Disember 2020.]
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![The following statements was extracted from the books of ShafNita Sdn. Bhd. at 31 December
2019 and 2020.
[Berikut adalah penyata-penyata yang diekstrak daripada buku-buku ShafNita Sdn. Bhd. pada 31 Disember 2019
dan 2020.]
ShafNita Sdn. Bhd.
Statement of Financial Position as at 31 December
2019
2020
RM
RM
RM
RM
Non Current Assets
Building
Fixtures less accumulated depreciation
Van less accumulated depreciation
100,000
100,000
3,600
7,840
111,440
4,000
14,800
118,800
Current Asset
Inventory
Trade account receivable
11,200
24,800
12,800
16,400
Bank
1,800
Cash
440
400
26,240
41,600
Total assets
137,680
160,400
Finance by:
Capital account:
Balance at 1 January
Add: Net profit for the year
74,080
105,080
70,400
42,320
Cash introduced
20,000
144,480
167,400
Less: Drawings
(39,400)
(43,200)
105,080
124,200
Non Current Liabilities
Loan (repayable in 10 years time)
20,000
30,000
Current Liablities
Account Payable
12,600
6,012
Bank overdraft
188
Retained earnings
32,600
36,200
Total liabilities and equity
137,680
160,400
...13/-
SULIT
SULIT
(BFT106)
-13-
Additional information at 31 December 2020:
[Maklumat tambahan pada 31 Disember 2020:]
Fixtures bought in 2020 cost RM800.
[Lengkapan dibeli pada 2020 bernilai RM800.]
Van bought in 2020 cost RM11,000.
[Van dibeli pada 2020 bernilai RM11,000.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bb0c101-78eb-4a3a-952c-c8986c7fe2ee%2F4d222d08-ee47-4402-b9ff-a5b81c46e499%2Fb807kf_processed.jpeg&w=3840&q=75)
![Required:
(Dikehendaki:]
Prepare statement of cash flow for ShafNita Sdn. Bhd. for the year ended 31 December 2020.
[Sediakan penyata aliran tunai untuk ShafNita Sdn. Bhd. bagi tahun berakhir 31 Disember 2020.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bb0c101-78eb-4a3a-952c-c8986c7fe2ee%2F4d222d08-ee47-4402-b9ff-a5b81c46e499%2Fgom5iq_processed.jpeg&w=3840&q=75)
Step by step
Solved in 2 steps with 1 images
