Assume that Ruby Associates is in the process of applying financing facility from MyBank. For that purpose, MyBank requires RA to submit the company’s financial statements to be reviewed by the bank.i. Why MyBank request the financial statements? Give TWO (2) reasonsii. Identify and explain the relevant information from the financial statements the important for MyBank in making decision. Ruby, opens her own law office, Ruby Associates (RA) which started the operation on 1st January2019. RA operates in Johor Baharu, Johor, Malaysia. On 1ª January 2019, Ruby introduced cashof RM155,000, an brought in her personal equipment that cost RM17,000 and motor vehicle at thecost RM45,000 for business use.During the month, RA earned revenue RM15,080 by cash from the services rendered. RA had paidthe following expenses by cash:RMSalaries5,0003,2001,500RentStationeriesTrade creditors/ Accounts payable RM3,700 was identified by end of the month. On 31st January2019, Ruby introduced RM10,000 for additional investment. She recorded this transaction as anincrease cash and increase in revenue.

The process by which financial transactions of the business are recorded and communicated with the…

Ruby, opens her own law office, Ruby Associates (RA) which started the operation on 1st January 2019. RA operates in Johor Baharu, Johor, Malaysia. On 1* January 2019, Ruby introduced cash of RM155,000, an brought in her personal equipment that cost RM17,000 and motor vehicle at the cost RM45,000 for business use. During the month, RA carned revenue RM15,080 by cash from the services rendered. RA had paid the following expenses by cash: RM 5,000 3,200 1,500 Salaries Rent Stationeries Trade creditors/ Accounts payable RM3,700 was identified by end of the month. On 31* January 2019, Ruby introduced RM10,000 for additional investment. She recorded this transaction as an increase cash and increase in revenue.

Ruby, opens her own law office, Ruby Associates (RA) which started the operation on 1st January 2019. RA operates in Johor Baharu, Johor, Malaysia. On 1* January 2019, Ruby introduced cash of RM155,000, an brought in her personal equipment that cost RM17,000 and motor vehicle at the cost RM45,000 for business use. During the month, RA carned revenue RM15,080 by cash from the services rendered. RA had paid the following expenses by cash: RM 5,000 3,200 1,500 Salaries Rent Stationeries Trade creditors/ Accounts payable RM3,700 was identified by end of the month. On 31* January 2019, Ruby introduced RM10,000 for additional investment. She recorded this transaction as an increase cash and increase in revenue.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P

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