PREPARE THE STATEMENT OF PROFIT OR LOSS AND STATEMENT OF FINANCIAL POSITION

PRINCIPLES OF ACCOUNTING UECH 1104 Tutorial 7 Question 1 31,740 Siti Aisyah, a successful sole trader. She hired Hilman & Co as an accountant to prepare the business Financial Statement for the year ended 31 December 2017. Following is the Trial Balance from his business, which closes on 31 December 2017. Debit Credit (RM) (RM) Purchase 74,000 Sales 111,700 Opening inventory Capital 136,890 Bank 80,000 Cash 10.000 Short term loan 15,500 Rent received 9,000 Interest received 7,000 Purchase return/ Return outward 4,190 Sales return / Return inward 5,270 Carriage outwards 8,720 Advertisement expense 7,500 Fixtures and fittings 35.000 Vehicle 41.600 Accounts receivable 13.970 Accounts payable 43,220 Drawings 3,800 Salary expense 15,000 Utility expense 900 327,500 327,500 Notes: i) Closing inventory - RM21,700 ii) Salary expenses accrued at 31 December 2017 - RM1,500 Advertisement prepaid at 31 December 2017 - RM2,300 iv) Rent received per month is RM 800. V The company should receive interest RM8,000 for the year. vi) Depreciation : Fixtures and fittings - 15% Vehicles - 20% Required: i) Prepare Statement of profit or loss and other Comprehensive Income for year ended 31 December 2017 (10 marks) Prepare the Statement of Financial Position as at 31 December 2017. (10 arks) ii)