FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following balances were extracted from the books of Billion Precision for the year ended 31 December 2020.
| Dr (RM) | Cr (RM) | |
| Land | 500000 | |
| Building | 200000 | |
| Motor vehicles | 120000 | |
| Plant and machinery | 70000 | |
| Profit b/f as at 01.01.2020 | 237650 | |
| Capital | 438000 |
Acc
| Dr (RM) | Cr (RM) | |
| Building | 60 000 | |
| Motor vehicles | 69250 | |
| Plant and machinery | 40000 | |
| Returns | 3600 | 4100 |
| Revenue | 800000 | |
| Purchases | 400000 | |
| Discounts | 5000 | |
| Carriage Inwards | 7700 | |
| Opening Inventory | 52000 | |
| Provision for |
2000 | |
| Trade receivables / Trade payable | 66000 | 43200 |
| Advertising | 18000 | |
| Staff training course | 4000 | |
| Bad Debts | 12500 | |
| Motor Expenses | 27000 | |
| Rental | 90000 | |
| Bank | 7600 | |
| Wages & Salaries | 126000 | |
| 1701800 | 1701800 |
Additional information:
i. The provision for bad debts should be 4% of trade receivables.
ii. Depreciation is to be charged as follows:
-Buildings 2% on cost.
-Plant and machinery 20% on cost.
-Vehicles 25% on cost.
iii. The closing inventories is valued at RM57,000.
Required:
a. Prepare the Statement of Comprehensive Income for the year ended 31 December
2020.
b. Prepare the
2020.
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