Question 1

The following balances were extracted from the books of MajuJaya Enterprise on 31 December 2022.

Particular RM RM Capital 50,000 Motor vehicles 90,000 Fixtures & fittings 48,500 Inventory as at 1 January 2022 32,200 Provision for doubtful debts 500 Accumulated depreciation as at 1 January 2022: Motor vehicles 16,000 Fixtures & fittings 10,400 3% fixed deposit 30,000 4% bank loan 50,000 Sales 199,070 Purchases 73,500 Return inwards 2,050 Return outwards 2,120 Discount allowed 2,550 Discount received 2,830 Account receivables 37,700 Account payables 48,650 Carriage inwards 3,570 Interest received 450 Commission received 2,600 Salaries 16,100 Electricity bills 5,400 Custom duty on purchases 3,000 Insurances 450 Maintenance expenses 3,300 Drawing 2,300 Cash in hand 6,800 Cash at bank 25,200

Additional information: 1. Inventory as of 31 December 2022, RM 18,180 2. Depreciation for the year ended 31 December 2022 has yet to be provided as follows: a. Fixtures & fittings: 10% using straight-line method b. Motor vehicles:15% using reducing balance method. 3. Electricity bills were paid in advance by RM500. Meanwhile, the RM400 commission has not been received yet. 4. One of the customers Anthony, was declared bankrupt and unable to pay the debt amount of RM700 5. The provision for doubtful debts is to be adjusted to 5% based on remaining account receivables. 6. RM140 salaries have not been paid. 7. 'Purchases' include goods valued at RM1,040 that were withdrawn by owner, Azreen for her personal use.

Required:

a) Prepare a Statement of Profit or Loss for the year ended 31 December 2022

b) Prepare a Statement of Financial Position as at 31 December 2022

(15 marks)

(10 marks)

[Total: 25 Marks]