Question

Zamri, a   sole trader extracted the following trial balance from his books at the close   of his business on 31 March 2018.   Trial Balance as at 31 March   2018   Debit  Credit   RM  RM Capital   31,000Inventory as at 1 April 201738,000 Rent (4600-500)=4100 4,600Bank 49,000 Cash11,022 Bad debts400 Discounts 2,8801,062Returns Inwards5,486 Returns Outwards 3,356Carriage Outwards3,210 Purchases and Sales130,000437,500Dividend received 2,000Interest expense720 Office equipment100,500 Accumulated depreciation for office equipment 4,000Delivery Van70,200 Accumulated depreciation for delivery van 3,000Trade Receivables (Debtors) 46,300 Trade Payables (Creditors) 26,940Drawings21,400 Insurance  (150x12)=1800-12001,200 Salaries35,940 Allowance (Provision) for doubtful debts 2,800 516,258516,258   The following additional Information is avalaible: i.          Inventory   31 March 2018 were RM 12,500. (closing inventory) ii.         One   of the debtors is proven could not pay his debts worth RM 600 to the   business. iii.        Allowance   (Provision) for Doubtful debts is to be decreased by RM 430. iv.       Depreciation   is to be based on:               Office Equipment     : 5% at cost               Delivery Van             : 12% at net book value v.        Monthly   insurance was RM150. vi.       Rent   revenue of RM 500 was received in advanced. vii.    The owner withdrew cash in hand of RM   800 for his personal use. (add drawings)   Required: Prepare a Statement of Profit or Loss for the year ended 31 March 2018 and Statement of Financial Position as at 31 March 2018.   (30m)

Answer 1

Solution:

(a) Statement of Comprehensive Income

For the year ended 31 July 2018

Particulars	Debit Amount	Particulars	Credit Amount
Purchases                     :65, 240 Less: Returns outwards: 1, 400	63,840	Sales:                        137, 425 Less: Returns Inwards: 3, 580	133,845
Discount allowed	2, 400	Closing inventory	6, 500
Carriage inwards	2, 410
Rent                              : 6, 780 Less: Prepaid rent            : 800	5,980
Depreciation on Office furniture	560
Depreciation on Motor van	3, 750
Salaries and wages:     42, 000 Add: Accrued salaries and wages                          : 5, 000	47,000
General expenses	560
Net Income (Profit)	13,845
Total	140,345	Total	140,345

(b) Statement of Financial Position

As at 31 July 2018

Liabilities	Amount	Assets	Amount
Capital                    :45, 845 Less: Drawings      :19, 600 Add: Net Income   : 13,845	40,090	Bank	20, 000
Cash	200
Accounts Payables	10, 500	Prepaid rent	800
Accrued salaries and wages	5, 000	Acc. Receivables     :12, 300 Less: Provision for doubtful debts                             :500	11,800
		Office furniture          :5, 600 Less: Depreciation        :560	5,040
		Motor van                  :15, 000 Less: Depreciation    : 3, 750	11,250
		Closing inventory	6, 500
Total	55,590	Total	55,590