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
QUESTION An audit team is currently engaged in planning the audit of the financial statements of E Limited as at 30 June 2007. This was the first accounting period during which

Various Types of Strategies Different types of hedge fund strategies are discussed as follows: Relative Value of Strategies: Relative value strategies are also known as no

Key points in the Turnbull Report: Have a defined process for review of effectiveness of internal control. Review regular reports on internal control. Consider key

Part B This case is intended to be an introduction to the various methods used in capital budgeting and looks at some of the decisions that may have to be made when evaluating pro

Q. Evaluate of Risk-Adjusted Discount Rate? Illustration: - From the following date state which project is preferable: Year Project A Proj

Alger Corp wants to buy some construction equipment for $50,000, which has a useful life of 4 years with no salvage value. Alger uses straight-line depreciation. Alger has a tax ra

Identify and explain the key stages in the capital investment decision-making process and the role of investment appraisal in this process.

Crown casino recently announced its intention to build a new 500-room luxury hotel in Perth costing approximately $568 million. As part of the agreement, the WA government has agre

Evaluate the importance of leverage of financial management on a small scale company.

Why do we need to learn finance The questions that you may thinking about right now are "Why do we need to learnfinance?  Shall we not leave it to people who are going to speci