Question 1

The following is the trial balance of Bintang Enterprise as at 31 Dec. 2019

Bintang Enterprise

Trial Balance as at 31 Dec. 2019

Accounts	Debit (RM)	Credit (RM)
Inventory at 1 January 2020	52,800.00
Sales		276,400.00
Purchases	141,300.00
Carriage inwards	1,350.00
Carriage outwards	5,840.00
Returns outwards		2,408.00
Wages and salaries	63,400.00
Business rates	3,800.00
Communication expenses	714.00
Commission paid	1,930.00
Insurance	1,830.00
Sundry expenses	208.00
Buildings	125,000.00
Accounts receivable	45,900.00
Accounts payable		24,870.00
Fixtures	1,106.00
Cash at bank	31,420.00
Cash in hand	276.00
Drawings	37,320.00
Capital at 1 January 2019		210,516.00
Total	514,194.00	514,194.00

Inventory at 31 Dec 2019 was RM58,440.00

REQUIRED:

1. Prepare income statement as at 31 Dec 2019

2. Prepare financial position as at 31 Dec 2019

See next page

QUESTION 2

The following is a summary of transactions that occurred in 31 Dec.2019 for Aqila Trading.

Sales RM2400 (Cash RM2,000, RM400 on Account), Cost of Goods Sold was RM2,000, Paid RM120 for Supplies: Used RM80 of them; RM40 remain, Purchased RM2,000 of inventory; paid RM1500 Cash, RM500 on account.

REQUIRED:

1. Prepare the necessary Journal entries.

2. Prepare Cash Flows from Operating Activities using direct method.