QUESTION 1

The following is the trial balance extracted from the books of AstraVeneca Enterprise as at 31 December 2020.

Debit (RM) Credit (RM) 359,250 111,100 6,900 8,110 242,000 150,500 20,700 150,000 200,500 141,100 23,400 30,000 6,000 2,200 Sales Purchases Return inwards Return outwards Capital Bank Cash Loan from CIPD Bank Land Machinery Furniture Accumulated depreciation as at 1 January 2020 Machinery Furniture Allowance for doubtful debts as at 1 January 2020 Wages and salaries Water and electricity Advertising expenses Accounts receivable Accounts payable Carriage inwards Discount allowed Rent received Drawings Carriage outwards Commission revenue Administrative expenses Insurance expenses Rental expenses Copyright Repairs Sundry expenses Inventory as at 1 January 2020 Duty on Purchase 44,700 10,040 32,100 40,300 40,450 5,100 8,700 87,950 11,320 11,500 20,420 5,800 11,000 22,000 8,500 4,000 9,700 60,000 7,420 946,380 946,380 Additional information: 1. Inventory as at 31 December 2020 was valued at RM 25,000. 2. Loan from CIPD Bank was taken on 1 June 2020 and the interest at 9% per annum has not yet been paid. 3. One of the accounts receivables of AstraVeneca Enterprise amounting to RM1,000 has been declared bankrupt. It is the policy of the firm to provide 6% allowance for doubtful debt on the remaining accounts receivable. Depreciation is to be provided as follows: 4. 5. Machinery 20% straight line method Furniture 15% reducing balance method The following adjustments are to be considered for the period: Accruals RM Prepayments RM Rent received 1,050 Insurance 1,000 Wages and salaries 1,300 Rental expenses 2,000 The owner took goods worth RM1,500 for his personal use. 6. Required: a. Statement of Profit or Loss for the year ended 31 December 2020. Statement of Financial Position as at 31 December 2020. (18 marks) b. (12 marks) Note 1: Use vertical format presentation for both statements and show all calculations. Note 2: Calculate to the nearest RM