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Question 1 The management of Farzana Enterprise has asked you to prepare their financial statements for the year ended 30 June 2022. The companys trial
Question 1
The management of Farzana Enterprise has asked you to prepare their financial statements for the year ended 30 June 2022. The companys trial balance as at that date is as follows:
Trial Balance of Farzana Enterprise as at 30 June 2022
Debit | Credit | |
---|---|---|
(RM) | (RM) | |
Purchases and sales | 320,000 | 896,625 |
Discount allowed | 45,000 | |
Salaries expenses | 151,000 | |
Bad debts | 7,500 | |
Insurance | 27,000 | |
Interest expenses | 7,875 | |
Telephone and internet charges | 3,750 | |
Rental and maintenance | 30,000 | |
General expenses | 41,850 | |
Capital | 500,000 | |
Tools | 82,500 | |
Carriage outwards | 30,000 | |
Carriage inwards | 8,500 | |
Return inwards | 1,500 | |
Investments | 175,000 | |
Land | 400,000 | |
Building | 180,000 | |
Furniture and Fixtures | 45,000 | |
Accumulated depreciation Building | 57,000 | |
Accumulated depreciation Furniture and Fixtures | 9,600 | |
6% Loan from Ambank, 15 years | 262,500 | |
Bank overdraft | 34,000 | |
Cash | 27,000 | |
Account Receivables | 92,100 | |
Inventories, 1 July | 87,900 | |
Account Payables | 48,750 | |
Drawings | 45,000 | |
1,808,475 | 1,808,475 |
Additional Information:
- Inventory as at 30 June 2022 was RM55,000
- Included in the carriage outward is carriage inwards amounting to RM500.
- The owner had taken RM800 of goods for her personal use
- Depreciation is to be provided as follows:
- Furniture and Fixtures 10% on cost, yearly basis
- Building 15% on Net Book Value, yearly basis
- Additional bad debt of RM800 was to be written off.
- Allowance for doubtful debt is to be adjusted to 2% on the outstanding account receivables
- The company has not yet paid half of the interest on loan for the year end 2022.
- The expenses below were still unpaid on 30 June 2022:
- Telephone and internet RM400
- General expenses RM500
- The Insurance expense was paid for the period from 1 December 2021 to 30 November 2022
Note: Show all relevant workings and journal entries for adjustments.
Required:
A. Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2022
B. Statement of Financial Position as at 30 June 2022
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