Question 1

May Ranee commenced business in 2017 selling handmade accessories for ladies. She also repairs faulty accessories for a nominal fee. For the year ended 31 March 2021 she provided a cash summary for the business as follows:

Receipts	RM		Payments	RM
Balance b/d	3,000		Payment to trade suppliers	29,000
Receipts from trade customers	83,000		Motor expenses	4,200
Owner contribution	3,000		Rental	4,000
Loan from Nee Pon	8,000		Rates	12,000
Credit transfer - Commission	1,000		Miscellaneous expenses	12,000
			Salaries and employee benefits	15,000
			Owner withdrawals	18,000
			Bank charges	100

She also provided the following additional information:

1. The above cash summary has been prepared from the business current/ cheque account with the bank. All receipts and payments up to 31 March 2021 have been passed through that account.

2. Two cheques totalling RM5,000 received from trade customers were deposited in to the business bank account on 30 March 2021. Both cheques did not appear on the bank statement for March 2021; However, one of the cheque amounting to RM1,800 was returned by the bank stating Refer to the Drawer.

3. Cheques issued with a total value of RM3,800 during March 2021 was not paid by the bank; In addition, the payment to suppliers as above included RM2,500 made by Mei Rah Ni, another client of the bank. May Ranee has notified the bank of this entry.

4. Loan from Nee Pon was received on 31 October 2020 at an interest rate of 12% per annum. Interest is payable half yearly beginning 30 April 2021. It is a four-year loan and 25% is to be repaid at the end of every anniversary of the loan.

5. For the year ended 31 March 2021, the following summary were also provided:

1. Total value of credit notes issued to trade customers RM1,400
2. Total value of credit notes received from trade suppliers RM2,300
3. Total value of discount received from trade suppliers as shown on the receipts received RM4,300
4. Total value of discount given to trade customers as shown on the receipts issued RM3,400
5. 10% from the receipts from trade customers is for repairs revenue received.

6. Yoo-Haa is a trade supplier as well as a trade customer. May Ranee owes Yoo-Haa, RM3,000 and Yoo-Haa owes May Ranee RM2,000. A memo was presented to indicate that both of them agreed to offset/ contra their owing.

7. Boh Looi, a trade customer owing RM2,000 became insolvent during the year and only 20% of the debt was recovered. The cash was received on 31 March 2021 and was not banked in.

In addition to the items mentioned above, the assets and liabilities of May Ranee at respective year end were as follows:

	31 March 2021		31 March 2020
	RM		RM
Motor vehicle at carrying amount	6,800		8,000
Unsold goods	5,500		6,000
Trade customers balance outstanding	8,200		3,500
Motor expenses due but unpaid	900		500
Rental prepaid	1,500		1,000
Owing to trade suppliers	5700		4,300

# Note: In answering the following questions, use the appropriate terms for the items to be presented on the financial statements.

REQUIRED

(a) The Income statement for May Ranee for the year ended 31 March 2021;

(b) The Statement of changes in equity for the year ended 31 March 2021;

(c) The Balance Sheet as at that date;