Question:

1. Prepare the statement of profit or loss for the year ended 31 December 2020. 2. Prepare the retained earnings statement for the year ended 31 December 2020. 3. Prepare the statement of financial position as at 31 December 2020.

The following balances have been extracted from the books of Ambrosia Berhad as at 31 December 2020. Debit Credit RM RM Land 540,000 Building 144,000 Machinery 36,000 Accumulated Depreciation: Building 43,200 Machinery 7,200 6% Loan from Maybank, 10 Years 210,000 Bank overdraft 32,220 Cash 29,474 Purchases and sales 264,000 588,000 Discount allowed 27,000 Salaries expenses 90, Insurance expense 43,200 Office expense 5,220 Telephone and internet charges 3,000 Retained earnings, 1 Jan 119,234 Dividend 36,000 Share capital-Ordinary 420,000 Supplies 66,000 Carriage outwards 29,760 Return inwards 1,200 Account receivable 73,680 Inventories, 1 Jan 70,320 Account payable 39,000 1,458,854 1,458,854 Additional information: 1. Closing inventories as at 31 December 2020 was valued at RM75,000. 2. Interest on loan has been accrued for the year ended. The loan was taken on 1 April 2020. 3. Depreciation was to be provided: Machinery 5% straight line basis. Building 10% on reducing balance method. 4. Insurance prepaid was RM6,000. 5. Included in the carriage outwards is carriage inwards amounting to RM8,452. 6. The record showed that the value of supplies on hand as at 31 December 2020 was RM45,330. 7. Import duty of the goods purchased from a supplier in China amounting to RM4,280 has been paid in 2020 however, the bookkeeper has not recorded it yet in the relevant accounts. 8. A payment of RM1,670 for telephone and internet charges was wrongly entered as a debit a to office expense by the bookkeeper