QUESTION 1

The following list of balances was extracted from the books of Ketumbar Enterprise as at 30 June 2019. RM Purchases 84,750 Sales 149,750 Return inwards 3,250 Return outwards 2,250 Drawings 4,750 Inventory (1 July 2018) 12,950 Buildings 79,750 Motor vehicles (cost RM34,750) 22,150 Fixtures and fittings (cost RM24,250) 19,350 Cash at bank 15,600 Salaries 16,550 Carriage inwards 3,150 Carriage outwards 4,300 Account receivable 29,750 Account payable 14,750 Water and electricity 3,640 Insurance 2,160 Provision for doubtful debts 500 Discount allowed 150 Discount received 100 Rent revenue 4,250 Rates 3,000 Loan from Affin Bank 24,750 Interest on loan 750 Commission revenue 250 Capital 109,400

The following additional information is available as at 30 June 2019: a) Rent revenue received in advance amounting to RM750. b) The loan from Affin Bank was taken on 1 October 2018 and the interest charged is 8% per annum. c) Depreciation: Motor vehicle -20% per annum on reducing balance method. Fixtures and fittings 10% per annum on straight line method. d) Rate accrued on 30 June 2019 was RM50. e) Insurance expenses amounting to RM360 is for July 2019. f) Commission revenue of RM500 was still not received as at 30 June 2019. g) Provision for doubtful debts should be increased by RM750. h) The owner took RM1,000 cash to pay his sons hospital bill. i) Inventory as at 30 June 2019 is RM19,050. Required: a) Prepare Ketumbar Enterprises statement of profit and Loss for the year ended 30 June 2019. (15 marks) b) Prepare Ketumbar Enterprises statement of financial position as at 30 June 2019. (10 marks) (Total:25 Marks)