Question

QUESTION 4 Mariam is in business as a retailer. The following balances were extracted from the books of Mariam Enterprise as at 31 Dec 2019. RM Capital at Jan 2019 190,000 Drawing 21,000 Land and buildings at cost) 150,000 Fixtures and Fittings ( M23,000 Computer equipment at cos 40,000 Accumulated depreciation Fixtures and Fillings 19,000 Computer gent 12.000 % loan 50,000 Lcan interest paid 2.000 10,000 Kash 4,070 Account receivables 0.00 ecount payables 31,000 Sales 365.000 Purchases 115,00 Goods returned by customers 8.900 Return outwards 4.250 Amatory at 1 Jan 2019 33.500 Delivery expenses 18.610 Computer repairs expenses 19.150 General running experies Salaries and wages 86,700 Marketing costs Discount allowed 22.400 Discount received 13,700 Additional information: 1. Inventory as at 31 Dec 2019 was valued at RM36,550. 2. An invoice for a credit purchase of goods RM6,500 had been misplaced and no entries had been recorded in the books. 3. The purchase of fixtures and fittings, RM4,000 had been included in the general running expenses. 4. At 31 Dec 2019, computer repair expenses RM1,700 were accrued and salaries and wages were prepaid RM5,200. 5. The 8% bank loan was received on 1 July 2019. 6. Depreciation is to be charged at the of the year as follows: Fixtures and fittings at the rate of 15% per annum using the straight-line method (ii) Computer equipment at the rate of 25% per annum using the reducing balance method. Required: a) Prepare the statement of profit or loss for the year ended 31 Dec 2019. (11 marks) b) Prepare the statement of financial position as at 31 Dec 2019. (9 marks) (Total: 20 marks)

Answer 1

Solution No. 4

Page No Date Statement of Peofit or loss 31st Dec, 2019 ал Poochi clan RM - Particulars i RM 33 Soo | عليكها ♡ 900 OP stock Purchases (4) Coedit Purchases Rehean Outwards Gross Profit 36 Sooo 135.000Sales Rebun 65oo 4250 221900 closing Inventory 356 Loo 365so 392650 392650 Gross Profit Discocent Recived 2,219.00 137oo Tuooo PIP wages Interest on loan 4000 Discount Allowed 22uoo Marketing Cost Salary & wajer 86700 (5.2010) 81.500 General Running Exp. 31600 (6) Pur af for fitting (4000) 2760 Computer Repair Exp. 1915o Delivery expenses 18 630 (t Accound Comp Repaile Deprecation Anhures & fitting 4800 Computer equipment 70,000 Net Profit 34820 235600 235600

Date: / / Balance Sheet 31st Dec 2019 On liabilities RM Assets RM 4 Capital Decawinge Net Profit Accured expenser Ako Payables (+) creditous 190,000 Cash 40 70 21000 Bank 10ooo 34820 Alc Receivables 60,000 203820 closing Investory 3655a 17oo Prepaid Exp. 5200 land & Building 150,000 37sao furniture 28000 (+ Pur 4000 52000 19 Dep. 4 800 310oo. 65oo. 27200 8 % loan So,ooo (+) I werest 9.000 (4000 X6112) Acc. Depreciation furniture & fitting comput la 19000 12000 Computer Eq 40,000 (~ Dep. 10.000.000 (+) Alc Dep. 3000 33000 326020 326020