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

Types of floating-rate securities, Floating rate securities can be br...

Floating rate securities can be broadly divided into following two parts: Floating-rate securities that have constant quoted margin. Floating-rate sec

Cost of equity share capital, Q. Cost of Equity Share Capital? Cost of ...

Q. Cost of Equity Share Capital? Cost of Equity Share Capital: - The cost of equity is the utmost rate of return that the company should earn on equity financed position of its

Illustrate miller-orr model recognises, Q. Illustrate Miller-Orr model reco...

Q. Illustrate Miller-Orr model recognises? The Miller-Orr model recognises which cash balance requirements are likely to fluctuate and that active management is required in r

What are the merits of budgets?, Question 1 Describe the process involved ...

Question 1 Describe the process involved in accounting. What are the objectives of accounting? Question 2 Briefly explain the role of management accounting. Also expalin the

Define stress testing and leverage, Lehman Brothers Holdings was a global f...

Lehman Brothers Holdings was a global financial services firm which, until declaring bankruptcy in 2008, participated in business in investment banking, equity and fixedincome sale

Implications of gordon’s fundamental valuation, Q. Implications of Gordons ...

Q. Implications of Gordons fundamental valuation? Explanation: - The implications of Gordon's fundamental valuation may be as below: (1) While the rate of return of the firm

Swap-linked notes, Swap-Linked Notes: Interest rate swaps are derivativ...

Swap-Linked Notes: Interest rate swaps are derivative products which help in transforming the cash flows of existing debt issues. These are not only useful in covering the exis

Define deadweight loss, What is meant by deadweight loss?  Why does a price...

What is meant by deadweight loss?  Why does a price ceiling usually result in a deadweight loss? Deadweight loss considers to the benefits lost to either consumers or producers

Valuing debt securities, Valuing Debt Securities Securities which promi...

Valuing Debt Securities Securities which promise to pay its investors a stated rate of interest and return principal amount at the maturity date are known as debt securities.

What are financial markets? why do they exist?, What are financial markets?...

What are financial markets? Why do they exist? Monetary markets are where financial securities are sold and bought.  They exist mainly to bring surplus economic units (those ha

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