INTRODUCTION TO ACCOUNTING (BAAD 1003) TOPIC REVIEW (23/6/2020) Question 1 (SE Jan 2019) The following trial balance has been extracted from the ledger of Smart Business Sdn Bhd: Smart Business Sdn Bhd Trial Balance as at 30 June 2018 Debit Credit RM RM Sales 450,000 Opening inventory 20,000 Sales return 5,200 Purchase 356,000 Purchase return 5,000 Carriage inwards 3,800 Import duties 7,000 Carriage outwards 4,000 Sundry expenses 4,200 Salaries 33,000 Utilities expenses 4,380 Stationaries expenses 3,700 Bad debts 1,850 Interest on loan 2,300 Discount allowed 4,000 Rental received 36,000 Fixtures and fittings 67,000 Van 63,000 Office equipment 20,000 Debtors 32,000 Bank 54,000 Cash 24,000 Capital 150,000 Drawings 16,000 Loan 50,000 Creditors 34,430 725,430 725,430 Additional information: 1. Inventory as at 30 June 2018 were valued at RM43,000. 2. Unpaid salaries amounted to RM4,500. 3. The companies received advance rental for July amounted to RM3,000. 4. Provision for doubtful debts RM2,000. 5. Depreciation are to be provided as follows: Fixtures and fittings 10% per annum on cost Van 20% per annum on cost Office equipment 15% per annum on cost Required: a) Prepare the Statement of Profit and Loss for the year ended 30 June 2018 for Smart Business Sdn Bhd. (20 marks) b) Prepare the Statement of Financial Position as at 30 June 2018 for Smart Business Sdn Bhd. (15 marks) (Total: 35 Marks)