Question 1

Abu Enterprise is solely owned by Abu Bakar, a sole trader of household knickknacks. The following are balances of Abu Enterprise as at 31 March 2019: -

Dr Cr

(RM) (RM)

Sales 150,000

Purchases 95,000

Inventory at 1 April 2018 3,000

Salaries 22,000

Rent 12,000

Discounts 1,200 1,250

Electricity and water 970

Bad debts written off 1,230

Provision for bad debts 1 April 2018 300

Cash at bank 25,550

Cash in hand 500

Capital account 1 April 2018 20,000

Drawings 1,500

Computer 13,000

Trade receivables 4,500

Trade payables 8,900

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180,450 180,450

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Additional information:

(1) Rent owing at 31 March 2019 RM80.

(2) Salaries paid in advance at 31 March 2019 RM150.

(3) Decrease in provision for bad debts RM50.

(4) Depreciation on computer is RM2,600.

(5) Inventory at the close of business has been valued at RM3,510.

Required:

(a) Prepare the Statement of Profit or Loss for the year ended 31 March 2019.

(12 marks)

(b) Prepare the Statement of Financial Position as at 31 March 2019. (13 marks)

[Total: 25 Marks]