ABFA2064 FINANCIAL ACCOUNTING III 1 Lecture 4 SKH2020 Revisions for Chapter 1 and 2 10 February 2020 Q1 Extracted from (A) Required: (a) Calculate the capital as at 1 January 2019 and 31 December 2019 (10 marks) A sole trader, Ryan Ng, does not keep proper books of accounts The following information is extracted from Ryan Ng's books for the year ended 31 December 2019 (b) Prepare a statement to calculate the profit or loss for the year ended 31 December 2019, (2 marks) (B) Motor van Furniture and fittings 1 January 2019 RM 48,000 34,000 19,000 17,600 33,000 800 2,500 Trude receivables Trade payables Inventories Prepaid expenses Cash in hund 31 December 2019 RM 48,000 38,800 18,800 17,000 37,500 1,000 4,800 The subscriptions received in cash by a club during the year 2019 were as follows Year 2018 2019 2020 RM 5,000 26,000 4.000 Additional information: On 1 January 2019, there were RM2,000 of subscriptions received in advance On 31 December 2019, the subscriptions in urtears amounted to RM3,500 1. An allowance for doubtful debts of RM600 is to be made for bad debts at the end of the year. Required: 2. Depreciation of 10% per annum on cost is to be charged on all non- current assets (a) Prepare a subscriptions account to determine the subscriptions income for the year ended 31 December 2019 (7 marks) 3. During the year, Ryan Ng had withdrawn RM800 from the business cach month for personal use. (b) Brielly explain the difference between a capital expenditure and a revenie expenditure with an example cach. (6 marks) [Total: 25 marks] 4. In August 2019, Ryan Ng brought in for use in the business a cabinet, a table and an office chair amounting to RM4,800