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:
Capital at 1 Jan 20X1 390
Trade receivables 396
Trade payables 104
Sales revenue 1,626
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
Motor expenses 54
Loan from a friend, repayable in six months time 50
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.
(a) Prepare an Income statement for the year ended 31 December 20X1.
(b) Prepare a Statement of financial position at 31 December 20X1.