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

Inflation accounting, Inflation Accounting: It is related  along with ...

Inflation Accounting: It is related  along with the adjustment in the value of assets that is current and fixed and of income in the light of changes in the price level. In a

Asset or expense?, what does office stationery at year end classify as? ass...

what does office stationery at year end classify as? asset or expense?

Acme inc. has total liabilities of $120, Acme Inc. has total liabilities of...

Acme Inc. has total liabilities of $120,000, total sales of $80,000, net income of $12,000, current assets of $90,000 and total assets of $150,000. What is the debt to equity rat

In between fifo and lifo which one is the correct method, Q. In between FIF...

Q. In between FIFO and lifo which one is the correct method? The differences for the four methods take place because the company paid different prices for goods purchased. No d

Accounting equation, Ower invested cash in the company along with equipment...

Ower invested cash in the company along with equipment at market value, the amount is considered part of capital or revenues?

Illustrate unearned service fees, Q. Illustrate unearned service fees? ...

Q. Illustrate unearned service fees? Micro Train reports the service income in its income statement for 2010. The company enters the USD 3000 balance in the Unearned Service Fe

State the list of special journals, State the list of Special journals ...

State the list of Special journals Purchases - All credit purchases of merchandise Cash Payments - All payments of cash Sales - All credit sales of merchandise

Show earnings per share, Q. Show Earnings per share? Earnings per-share...

Q. Show Earnings per share? Earnings per-share amounts are based upon the weighted average number of common as well as common equivalent shares outstanding during the year. Com

What are accounting software packages, Q. What are Accounting software pack...

Q. What are Accounting software packages? Accounting software packages are normally menu driven and organized into modules such as accounts payable, general ledger, accounts re

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