Prepare a statement of financial position, Financial Management

Brown has been in business for some years and has kept her drawings slightly below the level of profits each year. You are her accountant, and she has passed you the following list of balances at 31 December 20X1:

RM'000

Capital at 1 Jan 20X1                                                                                    390

Drawings                                                                                                     28

Trade receivables                                                                                         396

Trade payables                                                                                            104

Sales revenue                                                                                              1,626

Purchases                                                                                                   1,032

Returns inwards                                                                                            94

Discounts allowed                                                                                          8

Discount Received                                                                                         46

Plant at cost                                                                                                166

Plant depreciation at 1 Jan 20X1                                                                      26

Office equipment at cost                                                                                62

Office equipment depreciation at 1 Jan 20X1                                                      16

Administration costs                                                                                      76

Salaries                                                                                                       88

Motor expenses                                                                                            54

Loan from a friend, repayable in six months time                                                 50

Bank                                                                                                          100

Bad debts written off                                                                                    154

On 1 January 20X1, she brought her personal computer, valued at RM4,000, from home into the office. No entries have been made for this.

You are also given the following information at 31 December 20X1:

Depreciation on plant is charged at 10% per annum on cost. Depreciation on computer & equipment is charged at 20% per annum on the net book value at the year end.

Required:

(a) Prepare an Income statement for the year ended 31 December 20X1.

(b) Prepare a Statement of financial position at 31 December 20X1.

 

Posted Date: 3/19/2013 5:35:45 AM | Location : United States







Related Discussions:- Prepare a statement of financial position, Assignment Help, Ask Question on Prepare a statement of financial position, Get Answer, Expert's Help, Prepare a statement of financial position Discussions

Write discussion on Prepare a statement of financial position
Your posts are moderated
Related Questions
Exchange Requirements To ensure money supply, some central banks require some or all of its foreign exchange receipts (generally from exports) be exchanged for the local curren

definition and importance of capiyal budgeting

Factoring Denotes of enhancing a business's cash flow whereby outside organizations pays a firm a certain portion of its trade debts and then gets the full amount of cash from

Investors, who do not believe in Efficient Market Hypothesis (EMH), adopt active management strategies. Such investors incur more search costs (with regard to tim

Financial management is that division of managerial process which is concerned with the planning and controlling of firm's financial resources. It is concerned with the procurement

Tests of controlor systems based auditing Tests to obtain audit evidence about effective operation of the accounting and internal control systems. It isn't concerned about deta

Performance of Mutual Funds The performance of Mutual Funds can be evaluated by calculating the rate of return earned during the relevant comparison period. The return will inc

a) Social marketing is the use of normal marketing methods to achieve the benefits of social change, such as informing the public about the harm of under-age drinking, rather than

Revenues Revenues are the gross income received before any deductions for discounts, expenses, returns, and so on. It is also called sales in most organization. A much less c

Revenue bonds are the securities issued for financing an entity for general      public-purpose. The securities issued for entity financing are backed up with the