Trading goods, cost R1 000, were donated to a school on 27 February 2021. This transaction has not yet been recorded. 2.A physical stocktaking on 28 February 2021 showed the following inventories on hand:

Trading goods, cost R1 000, were donated to a school on 27 February 2021. This transaction has not yet been recorded. 2.A physical stocktaking on 28 February 2021 showed the following inventories on hand:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On 1 January 2020, Mamin Mali started a business by bringing in cash amounting to RM110,000.The nature of the business is supplying books and stationeries to schools and colleges. Thebusiness was registered as El Jay Sdn Bhd.Mamin Mali closes the company’s accounts every month and applies perpetual inventory systemin maintaining its inventories. The balances of the company’s accounts as at 30 April 2020 are asfollows:ACCOUNTS RMCash 26,700Accounts receivable 33,700Merchandise inventory 25,000Store supplies 5,500Prepaid insurance 2,000Store equipment 55,200Delivery van 48,000Notes payable 38,100Accounts payable 48,000The following transactions were completed in May 2020:Date TransactionsMay 1 Purchased merchandise from SazLee Company, RM2,500, FOB shipping point,terms 5/15, n/30. The transportation cost of RM200 was paid to thetransportation company.3 Sold merchandise to Remy Enterprise, RM18,700, term 3/10, n/30, FOBshipping point. The cost of the merchandise, RM7.900. The…
The owner of Time Traders requested you to calculate the net profit for the year ended 30 June 2020. Mr Minute, the owner, has not been very diligent in keeping records. He has presented you with the following information:  His assets and liabilities at the beginning of the financial year were as follows: Equipment at carrying value R75 000 Vehicles at carrying value R 125 000 Trading inventory R180 000 Cash in bank R32 000 Debtors R31 500 Creditors R8 500 Loan: Second Bank (14%) R50 000  The bank statements show a credit balance of R48 790 as at 30 June 2020.  All the cash received has been deposited.  A stock‐take performed on 30 June 2020, showed inventory on hand with a cost price of R230 000.  The debtors balance at year‐end is R38 000 and the creditors balance is R16 225.  Equipment was…
Alan, a sole trader, has the following trial balance as at 31 December 2020: Accounts Debit (RM) Credit (RM) Capital 121,050 Drawings 8,000 Cash at bank 3,000 Cash in hand 400 Accounts payable 12,000 Accounts receivable 30,000 Inventory as at 1 January 2020 23,000 Motor vehicle 40,000 Office equipment 60,000 Sales 130,000 Accumulated depreciation- Motor vehicle 8,000 Accumulated depreciation - Office equipment 12,000 Provision for doubtful debts 5,000 Purchases 90,000 Returns 600 300 Carriage inwards 300 Motor running expenses 1,000 Rent expenses 20,000…
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…
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…
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Mr. Ahmad Ali, who runs a retail business, Teguh Harian Ltd, had the following balancesextracted from the books of the business on 30 June 2020: Account Name RM RM Account Receivable and Account Payable 165,520 72,440 Carriage inwards 3,520 Inventory as at 1 July 2019 65,980 Carriage outwards 4,360 Discount allowed and discount received 2,680 60 Utilities 25,100 Loan from Miko bank 80,000 Returns inwards and return outwards 3,840 3,580 Bank 10,400 Premises 160,000 Motor Vehicles 56,000 Furniture and fittings 27,600 Cash 2,160 Accumulated depreciation as at 1 July 2019 ∙ Motor vehicles 20,160 ∙ Furniture and fittings 8,280 Salaries and wages 68,600 Bad debts 2,940 Rent received 7,500 Printing and stationery 9,400 Drawings 3,560 Insurance expenses 18,200 Purchases and Sales…
While examining the December 31, 2022 financial statements of Lark Company, a new client, you discover the following: Inventory at January 1, 2022, had been overstated by P 30,000. Inventory at December 31, 2022 was understated by P 50,000. A three year insurance policy had been purchased on January 2, 2021, for P 15,000. The entire amount was charged as an expense in 2021. During 2022, Bukidnon received a P 10,000 cash advance from a customer for merchandise to be manufactured and shipped during 2023. The 10,000 was credited to Sales Revenue. Bukidnon's gross profit on sales is 50%. Net income reported on the 2022 income statement (before reflecting any adjustments for the above items) is P 215,000. QUESTION: What is the proper net income for 2022?
The company made a sale of goods for RO. 15000 (cost RO 10000) and received 30% in cash and balance on the account. Which of the following is the correct presentation on the accounting equation? Select one: a. Assets = Liabilities + Owners' Equity -10000 (stock of goods) +12000 (Cash ) = 0 + + 2000 (Profit) b. Assets = Liabilities + Owners' Equity -10000 (stock of goods) +4500 (Cash) + 10500 (Receivables) = 0 + + 5000 (Profit) c. Assets = Liabilities + Owners' Equity -10000 (stock of goods) +12000 (Cash ) = 0 + + 2000 (Profit) d. Assets = Liabilities + Owners' Equity -10000 (stock of goods) +4500 (Cash) = + 11500 (Receivables) + + 3000 (Profit)
You opened a novelty store called "The Awesome Shop" on January 1, 2019. The following were the transactions during the year. 1. Provided P100,000 cash as an initial investment 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash 4. Acquired inventory on account for P60,000 (use perpetual inventory system) 5. Sold goods on a cash basis for P200,000.The cost of sales is P20,000 6. Sold goods on account for P300,000. The cost of sales is P30,000 7. Paid supplies to expense for P20,000 cash. 8. Paid rent expense of P180,000 9. Paid utility expense of P40,000 10. Collected P240,000 accounts receivable. 11. Paid P30,000 accounts payable…
While examining the December 31, 2022 financial statements of Bukidnon Company, a new client, you discover the following: 1. Inventory at January 1, 2022, had been overstated by P 30,000. 2. Inventory at December 31, 2022 was understated by P 50,000. 3. A three year insurance policy had been purchased on January 2, 2021, for P 15,000. The entire amount was charged as an expense in 2021. 4. During 2022, Bukidnon received a P 10,000 cash advance from a customer for merchandise to be manufactured and shipped during 2023. The 10,000 was credited to Sales Revenue. Bukidnon's gross profit on sales is 50%. 5. Net income reported on the 2022 income statement (before reflecting any adjustments for the above items) is P 215,000. QUESTION: What is the proper net income for 2022?