Q4

FINANCIAL STATEMENT WITH ADJUSTMENT QUESTION

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This is revision question paper

Mr Navin owns a general store and has extracted the following balances from his books on 30 June 2019 Debit Credit RM RM Purchases/Sales 57,341 80,340 Inventory 1 July 2018 4,173 Wages 10,650 Loan - Cee Bee Bank 6,000 Cash in hand 242 Premises on cost 15,000 Discount allowed/ received 410 715 Balance at bank 1,150 Drawings 7,326 Repairs to premises 720 Carriage inwards 246 Carriage outwards 584 Motor van, at cost 7,600 Accumulated depreciation on motor van 1,900 Electricity 630 Accounts receivables / Accounts payables 2,720 1,635 Equipment 4, 100 Motor van running expenses 1,370 Returns inwards / outwards 265 311 Assessment 1,260 Insurance 114 Capital 22,700 114,751 114,751The following further information is to be taken into account: 1. The inventory at 30 June 2019 was valued at RM4,620. I1. The allowance for depreciation for motor van is at 25% per annum on cost. FIB 1034 & FIB 1123 Page 6 of 6 Ill. The allowance for depreciation for premises is at 20% per annum using straight line method. No allowance for depreciation for the equipment. IV. The allowance for doubtful debts is 2% per annum. V. Electricity amounting to RM42 had been consumed and not yet paid for. VI. Payments in advance at 30 June 2019 were as follows: Assessment RM280 Insurance RM20 VII. The loan from Cee Bee Bank had been obtained on 1 January 2019. Interest at 12% per annum had yet to be paid. VIII. The bank had advised Mr Navin that interest yet to be charged on the bank overdraft amounted to RM95.Required: a) Prepare the statement of profit and loss and other comprehensive income for the year ending 30 June 2019. I [15 marks] b) Prepare the statement of financial position as at 30 June 2019. [15 marks] [Total: 30 marks] END OF QUESTION PAPER