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Create the statement of financial position as at that date

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Reference no: EM132480928

Maju Jaya Trading extracted the following balances from the business ledgers as at 31 August 20X1:

                                                                             dr                                    cr

Furniture & Fittings                                                 50000

Office Equipment                                                    40000

Accumulated depreciation: office equipment                                                8000

Motor Vehicles                                                      70000

Accumulated depreciation: motor vehicles                                                    25200

Drawings                                                                 19100

Capital                                                                                                   140000

Loan                                                                                                        25000

Inventory as at 1 September 20X0                              29300

Purchases and Sales                                                 89100                           177300

Returns                                                                    3800                             2600

Carriage                                                                   4500

Wages and salaries                                                   36000

Discounts                                                                 2300                               1300

Rent                                                                                                             4800

Interest                                                                    1800

Insurance                                                                  3600

Utilities                                                                      5000

Bad debts                                                                  1900

Trade receivables and payables                                      46600                            31300

Allowance for doubtful debts                                                                                 1500

Bank                                                                          11000

Cash                                                                            30000

total                                                                         41700                                    41700

Additional information:

1. Closing inventory was valued at cost RM26,300 but the market value was RM29,900

2. A quarter of the wages and salaries was paid to warehouse employees One third of the carriage expenses was to deliver goods to warehouse

3. Received utilities bill RM450 for August 20X1, but no payment has been made

4. Insurance premium was paid for the year ended 31 December 20X1

5. Received rent for the six months ended 30 September 20X1

6. An additional amount due from Encik Nagendran RM1,600 is to be written off as bad debts. Allowance for doubtful debts is to be increased to RM2,250.

7. Depreciation is to be provided as follows:

Furniture & fittings : 20% per annum at cost

Office equipment : 20% per annum using straight-line method

Motor vehicles : 20% per annum using reducing-balance method

8. A sales returns of RM500 was correctly entered into trade receivables control account but wrongly debited to discount allowed account.

Required:

Question (a) Prepare the Statement of Profit or Loss for Maju Jaya Trading for the year ended 31 August 20X1.

Question (b) Prepare the Statement of Financial Position as at that date.

Reference no: EM132480928

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