Question 1

Cindy, is the owner of CINDY Enterprise. The financial year end of the business is on 30 April annually. Below is the trial balance extracted from the books of CINDY Enterprise as at 30 April 2022.

Trial Balance as at 30 April 2022

Debit Credit

RM RM

Rent 18,000

Inventory as at 1 May 2021 10,940

Capital as at 1 May 2021 ?

Bank 2,490

Cash 1,140

Discounts 2,880 1,062

Returns Inwards 5,486

Returns Outwards 3,356

Carriage Outwards 3,210

Purchases and Sales 100,420 229,245

General Office Expenses 1,319

Fixtures and Fittings 40,900

Accumulated depreciation for Fixtures and Fittings 5,960

Motor Vehicle 55,600

Accumulated depreciation for Motor Vehicle 10,600

Trade Receivables (Debtors) 32,400

Trade Payables (Creditors) 21,982

Drawings 21,400

Wages and Salaries 35,940

Allowance (Provision) for doubtful debts 840

329,635 329,635

The following additional Information are available:

i. Inventory 30 April 2021 at cost RM18550 and at market price RM15,000.

ii. General office expenses owing RM260

iii. Allowance (Provision) for Doubtful debts at the rate of 5% of trade receivables

iv. Goods costing RM250 were taken by Cindy for his own use

v. Provide depreciation as for fixtures and fittings at 20% per annum and van at 15% per annum by using straight line method.

Required:

(a) Prepare Statement of Profit or Loss for the year ended 30 April 2022.

(10 marks)

(b) Prepare Statement of Financial Position as at 30 April 2022.

(10 marks)

(c) State the purpose of preparing a statement of financial position.

(4 marks)

(d) State FIVE (5) causes for non-current assets to depreciate.

(5 marks)

(e) A company, which end its accounts annually at 31 December, provides depreciation for its mac hinery at the rate of 10% per annum using the reducing balance method on a month-to-month basis.

At 31 December 2022, there are three (3) machineries purchased by cheque as shown below:

1 Jan 2020 Machine A RM5,000

1 Sep 2021 Machine B RM4,500

1 May 2022 Machine C RM2,850

Required:

i. Calculate the depreciation charges for each machine from 2020 to 31 December 2022.

ii. Prepare the accumulated depreciation account for machines ONLY for the year 2022.

Tral Balance as at 30 April 2022 The following additional Information are available: i. Inventory 30 April 2021 at cost RM18550 and at market price RM15,000. ii. General office expenses owing RM260 iii. Allowance (Provision) for Doubtful debts at the rate of 5% of trade receivables iv. Goods costing RM250 were taken by Cindy for his own use v. Provide depreciation as for fixtures and fittings at 20% per annum and van at 15% per annum by using straight line method. Required: (a) Prepare Statement of Profit or Loss for the year ended 30 April 2022. (10 marks) (b) Prepare Statement of Financial Position as at 30 April 2022. (1e marks) (c) State the purpose of preparing a statement of financial position. (4 marks) (d) State FIVE (5) causes for non-current assets to depreciate. (s marks) (c) A company, which end its accounts annually at 31 December, provides depreciation for its mac hinery at the rate of 10% per annum using the reducine halance method on a month-to- Required: (a) Prepare Statement of Profit or Loss for the year ended 30 April 2022. (10 marks) (b) Prepare Statement of Financial Position as at 30 April 2022. (te marks) (s) State the purpose of preparing a statement of financial position. (4 marks) (s) State FIVE (5) causes for non-current assets to depreciate. is marks) (e) A company, which end its accounts annually at 31 December, provides depreciation for its mac hinery at the rate of 10% per annum using the reducing balance method on a month-tomonth basis.At 31 December 2022, there are three (3) machineries purchased by cheque as shown below: Required: Calculate the depreciation charges for each machine from 2020 to 31 December 2022. (6 marks) *. Prepare the accumulated depreciation account for machines ONLY for the year 2022. Tral Balance as at 30 April 2022 The following additional Information are available: i. Inventory 30 April 2021 at cost RM18550 and at market price RM15,000. ii. General office expenses owing RM260 iii. Allowance (Provision) for Doubtful debts at the rate of 5% of trade receivables iv. Goods costing RM250 were taken by Cindy for his own use v. Provide depreciation as for fixtures and fittings at 20% per annum and van at 15% per annum by using straight line method. Required: (a) Prepare Statement of Profit or Loss for the year ended 30 April 2022. (10 marks) (b) Prepare Statement of Financial Position as at 30 April 2022. (1e marks) (c) State the purpose of preparing a statement of financial position. (4 marks) (d) State FIVE (5) causes for non-current assets to depreciate. (s marks) (c) A company, which end its accounts annually at 31 December, provides depreciation for its mac hinery at the rate of 10% per annum using the reducine halance method on a month-to- Required: (a) Prepare Statement of Profit or Loss for the year ended 30 April 2022. (10 marks) (b) Prepare Statement of Financial Position as at 30 April 2022. (te marks) (s) State the purpose of preparing a statement of financial position. (4 marks) (s) State FIVE (5) causes for non-current assets to depreciate. is marks) (e) A company, which end its accounts annually at 31 December, provides depreciation for its mac hinery at the rate of 10% per annum using the reducing balance method on a month-tomonth basis.At 31 December 2022, there are three (3) machineries purchased by cheque as shown below: Required: Calculate the depreciation charges for each machine from 2020 to 31 December 2022. (6 marks) *. Prepare the accumulated depreciation account for machines ONLY for the year 2022