Question

1. The following Trial Balance was extracted from the books of ZZZ Manufacturing as at 31 December 2019.

     ZZZ Manufacturing

                                                  Trial Balance as at 31 December 2019

	Debit (RM)	Credit (RM)
Accounts
Cash	68,000
Beginning inventories	24,300
Bank	106,000
Prepaid bills	3,000
Sales		104,900
Purchase	34,600
Custom duties	890
Salaries	13,000
Carriage inwards	190
Heat and lighting expense	7,500
Allowance for Doubtful Debts (AFDD)		550
Insurance	6,000	.
Bad debts	290
Debtors	34,000
Machineries	100,000
Fittings and furniture	43,000
Accumulated depreciation- machineries		20,000
Accumulated depreciation-fittings and furniture		6,450
Rental accrued		1,000
Carriage outwards	410
Commission income		6,500
Discount received		5,380
Advertisement	8,400
Creditors		12,300
Drawings	7,500
Loan		100,000
Capital		200,000
	457,080	457,080

Additional information:

1. Closing stock as at 31 December 2019 was RM32,400.
2. The owner took cash amounted of RM900 for personal use.
3. Advertisement of RM2,200 was still outstanding as at 31 December 2019.

4.         One of the employee was given an advance salary of RM1,000.

5.         Bad debt of RM700 was identified to be written off.

6.         Depreciation for the year are as follows:

Machineries                  - 10% on cost

Fittings and furniture - 15% on net book value

7.         Allowance for doubtful debts is increase by RM120.

Required:

1. Prepare Statement of Comprehensive Income for the year ended 31 December 2019 and;          (10 marks)

2. Statement of Financial Position as at 31 December 2019.                                   (15 marks)

Answer 1

Amount in RM Amount in RM PARTI-BALANCE SHEET Name of the Company ZZZ Manufacturing Balance Sheet as at 31st December 2019 Particulars (1) ASSETS Non current assets (a) Property, plant and Equipment Machineres Less: Accumulated Depreciation Less: Current Year's Depreciation 100.000 (20.000) (10,000) 70.000 Fittings and Furniture Less: Accumulated Depreciation Less: Current Year's Depreciation 43.000 16.450) (7.418) 29.133 b) Capital work in progress c) Investment Property id) Goodwill fe) Other intangible assets Intangible assets under development (9) Biological Assets other than bearer plants the Financial Assets 0) Investments Os) Trade receivables im) Loans IV) Others (to be specified) 0) Deferred tax assets inet) Other non current assets (7) Current assets (a) Inventories b) Financial Assels Investments Trade receivable Dabas Im Alowance for cu debes (RM 550 - RM 120) La ad Debt 32 400 34000 1870) (700) 83 mm) Cash and cash equivalents Loss Drawings in Cash Dark 68,000 1900) 100 000 173100 (v) Las ) Others (obespierd) Prepaid is Atlar Salary 3000 1000 4000 (c) Current Tax (N) (d) Oct Total Assets 341,263 EQUITY AND LIABILITIES Equity (a) Capital und Less Drawings Less: Drawings in Cash Add: Irofit eamed dunng the year 200.000 1/100) 1900) 31.103 100.000 (1) LIABILITIES Non-current abilities alinancial Lates 0) Borrowings Loan c) Irede payables Ou) Other financial liabilbes (other than those specified in item L. to be specified D) Trovisions c) Deterred tax abilities (0) d) Other non current habilities (7) Current Abilities (3) Firencial abilities б) Пентні Tracer para Cruxtiles Olhes financial liabilities (ther than the specified in item Accrued Rent Outstanding Advertisement Expenses b) O canton abilities (c) Provision (d) en Taxation (N) Total Equity and Liabilities 12.300 1000 2200 3200 341,263 PARTI-STATEMENT OF PROFIT AND LOSS Name of the Company 777 Marwalacturing Profil and ass strated for the year ended 31st December 2019 Particulars Amount in RM Amount in RM 104.900 Revenue from operations Sales Other income Commission Income Discount Received 6.500 5330 11.000 116,780 III Total Revenue (1) N Expenses: Cost of matenals consumed Purchases of Stock-in-Trade Changes in invertones of finished goods work in progress and Stockin RM24300 2400 34600 (8.100) 12.000 Employee benefits expense Finance costs Salanes (Less Advance Salary RM 1000) Depreciation and amortization expense Machineries (1000000.1) Fittings and Furniture (43000 5450) 0.15 10,000 7419 17.418 Ocher expenses Insurance Bad Debts RM 290 + RM 700 Allowance for doubtful debt Heating and Lighting Expenses Camagerwards Camage Outwards Custom Duties (assuming no credit is available Advertisement (Add outstanding RM 2200) 6.000 9.90 120 7500 190 410 890 10.600 26,700 82.618 34 163 Total expenses V Profit before exceptional items and tax.M Exceptional terms Vi Profitloss before tax (VA VI Lax expense (1) Current tax 2) Deferred tax IX Profit (Loss) for the period from continuing operations (VI-VII) X Profiles from discontinuing operations XI Tax expense of discontinuing operations XI Prohloss) from Discontinuing operations (after tax) X-XI) XII Profit Loss for the period (IX+XO 34 163 34 163