Prepare a statement of financial position, Accounting Basics

Brown sole trader

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: 3/26/2013 3:24:15 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
Draw a stem-and-leaf plot for the data set. (Enter numbers from smallest to largest separated by spaces. Enter NONE for stems with no values.) Data set A: The annual wages of emp

Q. Uses of technology in accounting? The computers of persons in a given building or department are frequently connected in a Local Area Network (LAN). These persons are able t

Q. Uses of journal in accounting? Organizing journal entries in a computerized system is different than in a manual system. The computer usually asks for the number of the acco

what are the basics of accounting

Fixed asset are assets which provides the business future benefit Fixed assets are those which are tangible in nature and is not meant for sale in the near future and from whi

The Braggs & Struttin' Company produces an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, depends on sales of 40

It is a national organization of female accountants in America that plans to further the interests of women in the accounting career. The American Society of Women Accountants (ASW

Q. Explain about Sales account? In theory sellers could record both sales allowances and sales returns as debits to the Sales account for the reason that they cancel part of th

Q. What is journal? In explaining the rules of credit and debit we recorded transactions directly in the accounts. Every ledger (general ledger) account shows only the increase

the spelling of number is different than code