CASE STUDY: THOMAS ENTERPRISE Thom Ece which sells clectrical products including washing machines air conditioners, water heaters and televisions. Thomas is the sole owner of the business. Thomas has no knowledge of double culty bookkeepiny Although bo has kept minimum records of his transactions, he records everything correctly. As such, he has come to you, an accountant in a small accounting company to seek help in preparing his accounts as well as providing him with any accounting advice that is necessary for the business to run toothly. The Culluwing balances were extracted from the books of Thus Enterprise as at 31 December 2120 Debit T.ist of Accounts Credit (RM) (RM) 351 1.000 9.601 800 4.800 78.000 8,460 8.181 10.200 9.000 580 610 265,000 150 570 Insurance on purchase Bank Charges Rental expense Stationeries Camare expenses Salaries Utilities Ceneral Expres Advertising Expert Curumission received Drawings Allowances for Doulful Debt 8 1 January 2020 Sales Return Inwards Outwards Discounts Allowed Received Capital Inventaries at January 2011 Fredhold Land Motor Vehicles Onice Equipment Accumulated Depreciation as a 1 January 2120 Motor Vehicles Office Equipment 5% Fixed Lyst Bank Cash Accounts Receivables Accounts Payables 10% Loan from Bank Purches 1.960 363,600 22.500 250), DXI 96.000 25.00 38,414 5,890 50,000 55.800 2.470 21.30 36,402 460 OC 115. 761.64011 761,666 Page 2 of 3 yo Maly WWW Following a discussion with Thomas the following points have come to light. These items have not been included as he was not sure how to record them. 1. 25% of camage expenses were carriage inwards and the remainder were care outwards expenses 2. Depreciation is to be provided as follows: Mocor vehicles 10% on straight line method Office equipment 7% on reducing balance method 3. The following adjustments are to be considered for the period: Prepayments RM Accruals Commission 2.000 Salaries received Stationeries 100 Utilities RM 2,500 500 4. The owner look cash RM1,000 and goods worth RM8,000 for personal use 5. The loan from Bank Eis was taken on January 2020. No interest has been paid on this loan at the end of accounting period 1. Allowances for Doubtful Dehx were to be adjusted to RM645 7. The Fixed Deposit account was opened on 1 July 2020 and interest is at 5% per annom. Na interest has been received caring the year 8. Inwestuties as at 31 December 2020 were valued at RM28.500 Required: la) Prepare the Statement of Prulitor Luss for the year ended 31 December 2020 (Il marks) b) Prepare the Statement of Financial Position as at 31 December clearly showing Thaimas Enterprise's opening capital, working capital (nct current assets) and the net profit for the year. 9 marks) ICI Thomas has heard about accounting terms assets, liabilities, equity, expenses and income. Blowever, Thumus is not sure what these terms mean and what are the differences between these terms. Write a report, using a fictitions name and address to Thomas to answer his query. In the report you are required to explain with examples all the live terms mention. (10 marks) [Total: 50 Marks] CASE STUDY: THOMAS ENTERPRISE Thom Ece which sells clectrical products including washing machines air conditioners, water heaters and televisions. Thomas is the sole owner of the business. Thomas has no knowledge of double culty bookkeepiny Although bo has kept minimum records of his transactions, he records everything correctly. As such, he has come to you, an accountant in a small accounting company to seek help in preparing his accounts as well as providing him with any accounting advice that is necessary for the business to run toothly. The Culluwing balances were extracted from the books of Thus Enterprise as at 31 December 2120 Debit T.ist of Accounts Credit (RM) (RM) 351 1.000 9.601 800 4.800 78.000 8,460 8.181 10.200 9.000 580 610 265,000 150 570 Insurance on purchase Bank Charges Rental expense Stationeries Camare expenses Salaries Utilities Ceneral Expres Advertising Expert Curumission received Drawings Allowances for Doulful Debt 8 1 January 2020 Sales Return Inwards Outwards Discounts Allowed Received Capital Inventaries at January 2011 Fredhold Land Motor Vehicles Onice Equipment Accumulated Depreciation as a 1 January 2120 Motor Vehicles Office Equipment 5% Fixed Lyst Bank Cash Accounts Receivables Accounts Payables 10% Loan from Bank Purches 1.960 363,600 22.500 250), DXI 96.000 25.00 38,414 5,890 50,000 55.800 2.470 21.30 36,402 460 OC 115. 761.64011 761,666 Page 2 of 3 yo Maly WWW Following a discussion with Thomas the following points have come to light. These items have not been included as he was not sure how to record them. 1. 25% of camage expenses were carriage inwards and the remainder were care outwards expenses 2. Depreciation is to be provided as follows: Mocor vehicles 10% on straight line method Office equipment 7% on reducing balance method 3. The following adjustments are to be considered for the period: Prepayments RM Accruals Commission 2.000 Salaries received Stationeries 100 Utilities RM 2,500 500 4. The owner look cash RM1,000 and goods worth RM8,000 for personal use 5. The loan from Bank Eis was taken on January 2020. No interest has been paid on this loan at the end of accounting period 1. Allowances for Doubtful Dehx were to be adjusted to RM645 7. The Fixed Deposit account was opened on 1 July 2020 and interest is at 5% per annom. Na interest has been received caring the year 8. Inwestuties as at 31 December 2020 were valued at RM28.500 Required: la) Prepare the Statement of Prulitor Luss for the year ended 31 December 2020 (Il marks) b) Prepare the Statement of Financial Position as at 31 December clearly showing Thaimas Enterprise's opening capital, working capital (nct current assets) and the net profit for the year. 9 marks) ICI Thomas has heard about accounting terms assets, liabilities, equity, expenses and income. Blowever, Thumus is not sure what these terms mean and what are the differences between these terms. Write a report, using a fictitions name and address to Thomas to answer his query. In the report you are required to explain with examples all the live terms mention. (10 marks) [Total: 50 Marks]