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

Institute of management accountants, The Institute of Management Accountant...

The Institute of Management Accountants previously the National Association of Accountants is an organization with approximately 70,000 members consisting of management accountants

Employees, Employees : The view of business organizations exist to maximize...

Employees : The view of business organizations exist to maximize the go back to shareholders has been undergoing modify as an outcome of social changes. A broader view is consider

Explain double-entry procedure, Q. Explain double-entry procedure? The ...

Q. Explain double-entry procedure? The double-entry procedure maintains the accounting equation in balance. The dual recording process generates two sets of accounts those with

Journal Entries, For my accounting class, how would I journalize the adjust...

For my accounting class, how would I journalize the adjusting entry for Annual depreciation is $3,480 on the building with the building amounting to $76,000 on the trial balance fo

The operating expenses section, The operating expenses section Operati...

The operating expenses section Operating Expenses - directly associated to the sale of merchandise General expenses (administrative expenses) related to business's offic

What is merchandise returns, What is Merchandise returns A Return is...

What is Merchandise returns A Return is when a customer returns to the seller part or all items purchased. An Allowance occurs when seller grants a customer a price reductio

Hi, Purchase of office supplies what is the account classification?

Purchase of office supplies what is the account classification?

DOUBLE ENTRY, HOW TO DO DOUBLE ENTRY QUESTIONS

HOW TO DO DOUBLE ENTRY QUESTIONS

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