BUSINESS ACCOUNTING

Transcribed image text: EBAB 123 Semester / 2020/2021 CONFIDENTIAL/SULIT QUESTION 1 125 MARKS Mawar Enterprise runs a small shop in Kajang, selling electrical products such as computer, telephone, washing machine and others. Given below is the trial balance as at 30 June 2020 extracted from the books of Mawar Enterprise: RM 30,000 2,400 RM 65,000 1.800 1,200 4,500 3,000 600 1,500 1,300 3,500 270 650 380 Purchases and Sales Return inwards Return outwards Utility bills Rental received Interest expenses Discount allowed Discount received Insurance expenses Salary and allowance Carriage inwards Carriage outwards Bad debts Capital Lorry (cost) Provision for depreciation - Lorry (1 July 2019) Building (cost) Provision for depreciation - Building (1 July 2019) Account receivables Account payables Cash at bank Cash in hand Inventories (1 July 2019) Long term loan (10% interest per year) Drawings Provision for doubtful debts (1 July 2019) 71,500 114,500 45,000 20,000 8,000 24,000 15,000 27,700 4,800 8,100 30,000 600 700 243,000 243,000 CONFIDENTIALSULIT EBAB 123 Semester / 2020/2021 The following information needs to be taken into account in the preparation of the final accounts: 1. Inventories as at the year-end was valued at RM5,100. 2. Provision for doubtful debts is to be adjusted at 5%. 3. Rental received for the amount of RM400 is still owed. 4. Insurance expenses paid cover up to July 2020. 5. Depreciation for the year ended 30 June 2020 has yet to be provided as follows: Lorry -20% reducing balance method Building 10% straight line method Required: a) Prepare a Statement of Profit or Loss for the financial year ended 30 June 2020. [15 marksi b) Prepare a Statement of Financial Position as at 30 June 2020. [10 marks