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

Materiality concept, Materiality Concept: There are several events in ...

Materiality Concept: There are several events in business that are trivial or insignificant in nature. The cost of reporting and recording such events will not be justified th

What is the use of balance sheet, Q. What is the use of balance sheet? ...

Q. What is the use of balance sheet? Balance sheet -- a statement of the financial position of a company at a single specific time(often at the close of business on last day

I, what are the internal sources of accounting?

what are the internal sources of accounting?

Prepare a trial balance with example, Q. Prepare a trial balance with examp...

Q. Prepare a trial balance with example? The Larry Fisher was captain of the football team at Prestige University. Afterwards he earned a master's degree in business administra

Amount of dividends, Houston Corporation has the following stock outstandin...

Houston Corporation has the following stock outstanding:     In 2012, Houston paid $330,000 in dividends. No dividends were paid in 2011 or 2010. Required : a)

On january 1, on January 1,20x1,A had 200,000 shares of $5 par value common...

on January 1,20x1,A had 200,000 shares of $5 par value common stock outstanding. On January 15 declared a cash dividend of $0.5 a share

Criticisms against setting of accounting standards, Criticisms against sett...

Criticisms against setting of Accounting Standards: 1.       Setting of Standards may occasionally control the type of treatment of definite items. 2.       They may generat

Explain cash basis of accounting, Q. Explain cash basis of accounting? ...

Q. Explain cash basis of accounting? Professionals such as lawyers and physicians and some relatively small businesses may account for their revenues and expenses on a cash bas

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