Prepare a statement of financial position, Financial Management

Assignment Help:

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.

 


Related Discussions:- Prepare a statement of financial position

Find the impact of price and trading volume, Purpose of research: The a...

Purpose of research: The aims of this research are to examine the effectiveness of speculation on efficiency of Petrochemical sector in Saudi Arabia financial market"TADAWUL".

What are retained earnings, What are retained earnings?  Why are they impor...

What are retained earnings?  Why are they important? Retained earnings denote the sum of all the earnings obtainable to common stockholders of a business throughout its whole h

Show repayment of principal, Your company is preparing to borrow $1,750,000...

Your company is preparing to borrow $1,750,000 on a 3-year, 10%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will sho

How does the net present value relate to value of the firm, How does the ne...

How does the net present value relate to the value of the firm? The net present value is the dollar amount of the amend to the value of the firm if the project under considerat

Forward start option and a chooser option, When a company commits (implicit...

When a company commits (implicitly or explicitly) to granting at-the-money options to employees in the future then we can view them as a forward start options. a) Explain the di

Define conservative type of working capital financing plan, What is the mos...

What is the most conservative type of working capital financing plan a company could implement?  Explain. An all equity capital structure would be mainly conservative type of wor

What is bid, Bid The price buyers provide to acquire securities or pri...

Bid The price buyers provide to acquire securities or privacy from sellers.

Placement on career path, Placement on career path: The next step of t...

Placement on career path: The next step of the career planning process is to place an individual on a chosen career path. A career path is the logical possible sequence of pos

Dual-indexed floaters, In dual indexed floaters the coupon rate is a ...

In dual indexed floaters the coupon rate is a fixed rate plus the difference between two reference rates. Purchasers of these securities typically make an assumpt

How howan acquisition should be implemented, How Howan acquisition should b...

How Howan acquisition should be implemented 1. Directors of the target company must be approached first and a firm offer of a price made on condition that all due diligence wor

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd