Prepare a statement of financial position, Accounting Basics

Assignment Help:

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:

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

Example of periodic inventory procedure, Q. Example of Periodic inventory p...

Q. Example of Periodic inventory procedure? Periodic inventory procedure Merchandising companies selling small unit value merchandise such like nuts and bolts Christmas cards n

Obtain relevant authoritative literature on accounting, Obtain the relevant...

Obtain the relevant authoritative literature on accounting for accounts receivable using the FASB's Codification Research System at the FASB website. What is the specific citation

What do you mean by supplies on hand, Q. What do you mean by Supplies on ha...

Q. What do you mean by Supplies on hand? Supplies on hand approximately each business uses supplies in its operations. It may classify supplies merely as supplies to include al

Audit Reports, Why it is important for independent auditor to be a member o...

Why it is important for independent auditor to be a member of a professional body?

Explain the meaning of payroll deductions, Explain the meaning of Payroll D...

Explain the meaning of Payroll Deductions There are numerous deductions taken from an employee's earnings. These are deducted by employer before employee receives a check. D

What is the mission of the accounting and finance, what is the mission of t...

what is the mission of the Accounting and Finance Functional Area

Credit & debit, difference between credit and debit

difference between credit and debit

Frank Woods Business Accounting, J Green''s financial position at 1 May 200...

J Green''s financial position at 1 May 2008 was as follows bank 2,910 cash 160 equipment 5,900 premises 25,000 creditors R smith 890 t thomas 610 debtors j car

Cost of capital, Provide an argument for including or not including current...

Provide an argument for including or not including current liabilities in the cost of capital calculation

Example of perpetual inventory procedure, Q. Example of perpetual inventory...

Q. Example of perpetual inventory procedure? The Perpetual inventory procedure Companies use perpetual inventory procedure in a range of business settings. In the past companie

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