Question

Question 1

QUESTION 1 Following is a trial balance of Booroaq Technology Sdn. Bhd as at 31 December 2016 Booroaq Technology Sdn. Bhd Trial Balance As at 31 December 2016 Credit (RM) Debit (RM) Warehouse rent 3,700 21,400 15,570 Wages and Salaries Van Utilities Expenses 334 Shop Lot 199,000 Sales 77,337 Returns Outwards Return inwards 1,330 777 Purchases 35,375 11,755 Opening inventory Long Term debt Legal Expenses Insurance 100,000 757 1,200 General Expenses Equipment Drawings Cash in Hand 555 7,900 6,500 7,324 13,750 710 Cash at Bank Carriage Outwards Carriage inwards 990 Capital 150,000 Account Receivables 9,060 Account Payables 7,990 336,657 336,657 Inventories at 31 December 2016 was RM 11,780 You are required to draw up the Income statement (trading and profit and loss account) i. (23 marks) ii. Balance sheet (17 marks)

Answer 1

Solution of the above problem is as under:

Booroaq Technology Sdn. Bhd
Income Statement (Trading and Profit and Loss Account)
For the Year Ended 31st December 2016
Dr.			Cr.
Particulars	Amount (PM)	Particulars	Amount (PM)
To Opening Inventory	11755	By Sales	77337
To Purchases	35375	By Return Outwards	1330
To Return Inwards	777	By Closing Inventory	11780
To Carriage Inwards	990
To Gross Profit B/f	41550
	90447		90447
		By Gross Profit	41550
To Warehouse Rent	3700
To Wages and Salaries	21400
To Utilities Expenses	334
To Legal Expenses	757
To Insurance	1200
To General Expenses	555
To Carriage Outwards	710
To Net Profit B/f (T/f to Capital A/c)	12894
	41550		41550
Booroaq Technology Sdn. Bhd
Balance Sheet as at 31st December 2016
Asset	Amount (PM)	Liability	Amount (PM)
Current Assets		Capital Refer W.N-1)	156394
Stock	11780
Account Receivables	9060	Current Liabilities
Cash & Cash Equivalents		Account Payables	7990
Cash in Hand	7324
Cash at Bank	13750	Long Term Liabilities
Fixed Assets		Long Term Debts	100000
Equipments	7900
Van	15570
Shop Lot	199000
	264384		264384
Working Note (W.N)-1
Capital Account
Particulars	Amount (PM)	Particulars	Amount (PM)
To Drawings	6500	By Balance B/d	150000
		By Net Profit (t/f from P&L Account)	12894
To Balance C/d	156394
	162894		162894

Note: Since there is no information regarding Depreciation, Depreciation is not taken into consideration.