CONFIDENTIAL QUESTION 3 AC/JUN 2019/ACC406 Shaza is the owner of Shazayra Enterprise, a sport boutique. The...

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CONFIDENTIAL QUESTION 3 AC/JUN 2019/ACC406 Shaza is the owner of Shazayra Enterprise, a sport boutique. The business is engaged in selling various sport items and located at a strategic location. She plans to secure a bank loan to open up another branch. Since you have knowledge in accounting, she requested your assistance to prepare the final accounts of her business for the year ended 30 June 2018, in order to support her bank loan application. The following information is made available to you. Debit Credit RM Capital Cash in hand Cash at bank Accounts receivable Accounts payable Sales Purchases RM 65,000 4,400 26,095 20,000 11,200 82,100 35,600 Return inwards 1,800 Return outwards 2,000 Inventory as at 1 July 2017 33,000 Carriage inwards 500 Allowance for doubtful debt as at 1 July 2017 100 Office Equipment at cost 10,000 Motor vehicle at cost 50,000 Accumulated Depreciation as at 1 July 2017: Office Equipment 4,000 Motor Vehicle 18,000 Salary expenses 21,600 Rental expenses 13,000 Insurance expenses Water and electricity expenses Discount allowed Commision received 10% Loan from MM Bank Discount received 1,295 1,350 250 2,790 30,000 3,700 218,890 218,890 Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL AC/JUN 2019/ACC406 Additional information: 1. 2 Inventory as at 30 June 2018 were valued at RM25,000. The depreciation on non-current assets are to be provided as follows: a. Office equipment b. Motor vehicle 3. 4. 5. 6. 7. 8. 20% per annum using straight line method. 20% per annum using reducing balance method. Bad debt to be written off at year end amounted to RM150. It is the policy of the business to provide 2% allowance on doubtful debt on the remaining account receivable. The owner had withdrawn goods RM350 and cash RM2,400 for her personal use during the year. During the year, the business has incurred and paid via cheque the carriage outward amounted to RM120 for goods delivered to a customer in another town. This transaction was omitted from the records. 10% Loan from MM Bank was taken on 1 November 2017 and the interest on the loan has not yet been paid. The following adjustments are to be made at year end: Accruals Prepayment Water and electricity expense RM150 Insurance expense Commission received RM210 Rental expense RM 205 RM1,000 Required: a. Statement of Profit or Loss for the year ended 30 June 2018. b. Statement of Financial Position as at 30 June 2018. (18 marks) (12 marks) Notes: Use vertical format of presentation for both statements and show all calculations. 1. 2. Calculate to the nearest RM. (Total: 30 marks) Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL QUESTION 3 AC/JUN 2019/ACC406 Shaza is the owner of Shazayra Enterprise, a sport boutique. The business is engaged in selling various sport items and located at a strategic location. She plans to secure a bank loan to open up another branch. Since you have knowledge in accounting, she requested your assistance to prepare the final accounts of her business for the year ended 30 June 2018, in order to support her bank loan application. The following information is made available to you. Debit Credit RM Capital Cash in hand Cash at bank Accounts receivable Accounts payable Sales Purchases RM 65,000 4,400 26,095 20,000 11,200 82,100 35,600 Return inwards 1,800 Return outwards 2,000 Inventory as at 1 July 2017 33,000 Carriage inwards 500 Allowance for doubtful debt as at 1 July 2017 100 Office Equipment at cost 10,000 Motor vehicle at cost 50,000 Accumulated Depreciation as at 1 July 2017: Office Equipment 4,000 Motor Vehicle 18,000 Salary expenses 21,600 Rental expenses 13,000 Insurance expenses Water and electricity expenses Discount allowed Commision received 10% Loan from MM Bank Discount received 1,295 1,350 250 2,790 30,000 3,700 218,890 218,890 Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL AC/JUN 2019/ACC406 Additional information: 1. 2 Inventory as at 30 June 2018 were valued at RM25,000. The depreciation on non-current assets are to be provided as follows: a. Office equipment b. Motor vehicle 3. 4. 5. 6. 7. 8. 20% per annum using straight line method. 20% per annum using reducing balance method. Bad debt to be written off at year end amounted to RM150. It is the policy of the business to provide 2% allowance on doubtful debt on the remaining account receivable. The owner had withdrawn goods RM350 and cash RM2,400 for her personal use during the year. During the year, the business has incurred and paid via cheque the carriage outward amounted to RM120 for goods delivered to a customer in another town. This transaction was omitted from the records. 10% Loan from MM Bank was taken on 1 November 2017 and the interest on the loan has not yet been paid. The following adjustments are to be made at year end: Accruals Prepayment Water and electricity expense RM150 Insurance expense Commission received RM210 Rental expense RM 205 RM1,000 Required: a. Statement of Profit or Loss for the year ended 30 June 2018. b. Statement of Financial Position as at 30 June 2018. (18 marks) (12 marks) Notes: Use vertical format of presentation for both statements and show all calculations. 1. 2. Calculate to the nearest RM. (Total: 30 marks) Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

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1 Trading Account This part shows how much money was made from selling goods after accounting for the cost of those goods Sales The total amount of money received from selling items throughout the yea... View the full answer