Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

hiiiiii i need the answer for this question Doralin Sdn Bhd has been in business for several years but did not keep a complete set

hiiiiii i need the answer for this question
image text in transcribed
image text in transcribed
Doralin Sdn Bhd has been in business for several years but did not keep a complete set of books. Mrs Shuhadah, the owner has approached you to assist her in preparing the financial statements for the year ended 31 December 2019. The following is the trial balance extracted from the books of Doralin Sdn Bhd: (S) 2,500 Doralin Sdn Bhd Trial Balance as at 31st December 2019 Account Debit Credit ($) Return Inward and Outward 660 800 Carriage outward Drawings 4,400 Allowance for doubtful debts 1,700 Bad debts 2,300 Insurance 2,200 Carriage inward 1,500 Commission received 2,400 Discount allowed 1,000 Discount received 1,200 Motor expenses 1,160 Household expenses 1,600 Salaries 11,000 Utilities 3,180 Interest on loan 1,200 Accounts receivable 23,000 Accounts payable 22,500 Bank 28,000 Loan from CIMB 30,000 Inventory (1st January 2019) 8,250 Purchases 59,000 Sales 124,260 Machinery 65,000 Motor Vehicles 48,000 Accumulated depreciation: 19,200 Machinery 9,600 Motor Vehicles Capital 52,290 Total 263,950 263,950 Through your investigation, you also discovered the following information: a. Inventory as at 31st December 2019 was $11,200. b. You discovered that there is one invoice of $400 which was overdue for more than a year. Mrs. Shuhadah decided to write this off as he considered this as uncollectible. c. Depreciation for the year is to be provided as below: Machinery $4,580 Motor Vehicles $4,800 d. Household expenses represent expenses for the owner's personal life, which she didn't know she supposed to be separate from business expenses. e. Allowance for doubtful debt was to be adjusted to 10% of credit sales $25,000. f. Insurance expenses were paid by the company for the period of April 2019 to March 2020. g. The business has the following outstanding expenses at the end of the year: Carriage inwards $560 Salaries $700 h. As an effort that you make to help Mr. Jason preparing the financial statement, you are charging accounting fees to the company amounted $2,000. And this expense has not yet been recorded until at the year end. Required: 1) Prepare Income Statement for the year ended 31st December 2019. 2) Prepare Statement of Financial Position as at 31st December 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Business Statistics

Authors: Ronald M. Weiers

7th Edition

978-0538452175, 538452196, 053845217X, 2900538452198, 978-1111524081

Students also viewed these Accounting questions