Financial Statements

Kung Fu is a retail business. It draws up its financial statements once a year. It has been using the periodic inventory system since the beginning. Its financial year is the end of February each year. A trial balance as at 28 February 2023 is shown below:

Kung Fu: Trial balance as at 28 February 2023

Details	DR RM'000	CR RM'000
Accounts payable		380
Accounts receivable	508
Accumulated depreciation, at 01.March.2022
building		70
office equipment		80
Advertising expense	10
Allowance for doubtful debts		17
Capital		710
Cash at bank	38
Discount allowed	20
Discount received		30
Drawings	65
Insurance expense	33
Interest expense	11
Inventory 01 March 2022	143
Land and building	650
Lighting and Power expense	52
Miscellaneous operating expenses	25
Notes payable, due in 2026		120
Office equipment, at cost	200
Prepaid insurance	36
Purchases	852
Salaries and wages expenses	217
Sales		1593
Sales return	47
Transport inwards expense	18
Transport outwards expense	75
Total	3,000	3,000

Additional information:

i The prepaid insurance indicated in the above is valid from 01 February 2023 to 31 January 2024.

ii The depreciation charges for building RM6,000 and for office equipment RM40,000 for the financial year had not yet been adjusted.

iii The Allowance for Doubtful Debts should be increased to RM20,000.

iv On 15 February 2023, Kung Fu advertised its products in the local newspaper. The advertisement cost of RM2,000 was given a credit period of 30 days. No entry was made at all for this transaction.

v A physical inventory count was taken at the end of the day on 28 February 2023 and it valued at RM123,000.

questions

1. Prepare a detailed profit or loss statement for the year ended 28 February 2023 (10 marks)
2. A statement of owners equity for the year and a statement of financial position as at 28 February 2023. (10 marks)

*please give answer in excel copy*