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

Beta, Definition of 'Beta' A measure of the volatility or systematic ri...

Definition of 'Beta' A measure of the volatility or systematic risk of a security or a portfolio in difference to the market as a whole. Beta is needed in the capital asset pri

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

Financial management and materials department, Financial Management and Mat...

Financial Management and Materials Department The materials management is of utmost importance in a manufacturing firm and covers the areas such as procurement, storage, mainte

Characteristics of a stock exchange, Characteristics of a Stock Exchange ...

Characteristics of a Stock Exchange The requirements for a stock exchange to act as a platform for buying and selling securities is dependant upon the trading prerequisites. Som

Relevance of development of money market, Relevance of Development of Money...

Relevance of Development of Money Market The development of the money market is important for the debt market especially through the process of liquidity. The money market prov

Riskiness of portfolios b/w riskiness of individual asset, Why does the ris...

Why does the riskiness of portfolios have to be looked at differently than the riskiness of individual assets? The riskiness of portfolios has to be seemed to be at differently

Interpolation applications in financial analysis, In financial analys...

In financial analysis, interpolation is used widely in: Determination of internal rate of return of a project. Finding out the yield to maturity (ytm)

Investment decision and cost of capital, INVESTMENT DECISION AND COST OF CA...

INVESTMENT DECISION AND COST OF CAPITAL In Finance, investment decision is disclose the allocation of funds in fixed assets or long term. This decision is also known as capita

What is gatt, What is GATT, and what is its goal? GATT is the General A...

What is GATT, and what is its goal? GATT is the General Agreement on Tariffs and Trade it is a agreement that seeks to decrease trade barriers among participant nations.

Discounting technique for calculating time value of money, DISCOUNTING TECH...

DISCOUNTING TECHNIQUE is also called present value technique. It is the process of calculating the present value of cash flows.  Discounting is determining the present value of a

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