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Exercise 1: The trial balance prepared from the books of J. Strauss at 30 June 2020 was as follows: Dr (RM) Cr (RM) Capital at
Exercise 1:
The trial balance prepared from the books of J. Strauss at 30 June 2020 was as follows: Dr (RM) Cr (RM) Capital at 1 July 2019 508,500 Drawings 74,000 Motor vehicle at cost 180,000 Provision for depreciation - motor vehicles 54, 000 Accounts receivable and accounts payable 85,000 53, 500 Inventories 1 July 2019 100,000 Wages and salaries 36, 500 Carriage inwards 36, 000 Advertising 5, 150 Rates and insurance 29, 000 Purchases and sales 1,011, 000 1, 215, 500 Returns inwards and outwards 4, 350 Carriage outwards 11, 000 Rent 66, 000 Office equipment 46, 000 Provision for depreciation - office equipment 15, 500 Fixtures and fittings 73, 600 Provision for depreciation - fixtures and fittings 9,600 Lighting and heating 12, 400 Balance at bank 87,950 Cash in hand 750 1,858, 700 1,858, 700 At 30 June 2020: 2, 100 (a) Inventories were valued at RM185, 000, electricity accrued RM230. (b) Rates and insurance included rates RM3, 600 for a quarter ending 31 August 2020 and an annual insurance premium RM 2, 400 to 31 December 2020. (c) A bill amounting to RM8,000 had been posted to the carriage inwards account instead of the carriage outwards account. (d) Fixed assets are to be depreciated as follows: Motor vehicles 20% per annum on cost Office equipment 25% per annum on book value Fixtures and fittings 10% per annum on cost Required: Prepare a statement of profit and loss for the year ended 30 June 2020 and a statement of financial position at that dateStep by Step Solution
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