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Question 1(IS) Aroma Trading is a sundry shop business owned by Mr. Amin. The following trial balance for his business as at 31 December 2022

Question 1(IS) Aroma Trading is a sundry shop business owned by Mr. Amin. The following trial balance for his business as at 31 December 2022 was extracted from his books. Aroma Trading Trial Balance as at 31 December 2022

Accounts Debit (RM) Credit (RM)
Inventory on 1 January 2022 45,000
Cash 5,950
Bank 11,500
Accounts receivable 26,000
Allowance for doubtful debts 500
Accounts payable 22,250
Capital 70,000
Motor Vehicle 100,000
Office Equipment 30,000
Accumulated Depreciation Motor vehicle 40,000
Accumulated Depreciation office equipment 7,500
Sales 330,000
Return inwards 3,000
Purchases 240,000
Return outwards 2,000
Carriage inwards 3,400
Carriage outwards 1,500
Drawings 3,600
Discount allowed 2,200
Discount received 4,600
Utilities expenses 3,800
Insurance expenses 7,900
Bad debts expenses 750
Selling expenses 8,800
Interest on loan 1,250
Wages and salaries 27,000
Rental received 14,000
Long term loan, 8% p.a 30,800
Total 521,650 521,650

Additional information: 1.Inventory as at 31 December 2022 was RM38,000.

2.Included in the insurance expense was a general insurance amounting to RM600 which was for the next accounting period.

3.Interest on bank loan for half a year was unpaid.

4.One of the accounts receivables was declared a bankrupt. The amount owing to Aroma Trading was RM3,000.

5.Utilities expenses for December 2022 amounting to RM1,600 have not been included in the accounts.

6.The owner took out cash amounting worth RM300 for personal dinner celebration with his family.

7.Allowance for doubtful debts is to be adjusted to 5% of net account receivables.

8.Depreciation is to be charged as follow: i.Office Equipment 25% on reducing balance method ii.Motor Vehicles 20% on straight line method Note: Show all relevant workings.

the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2022 is

RM RM RM
Sales 330,000
Less: Return Inwards -3,000
Net Sales 327,000
Less: Cost Of Good Sold (COGS)
Opening Inventory 45,000
Add: Purchases 240,000
Less: Return Outwards -2,000
Net Purchase 238,000
Add:Carriage Inwards 3,400
Less: Closing Stock -38,000
COGS 248,400
Gross Profit (Net sales - COGS) 78,600
Add:Revenue
Rental received 14,000
Discount received 4,600
Interest expense 1,232
Total Other Income 19,832
98,432
Less:Expenses
Wages and salaries 27,000
Discount allowed 2,200
Utilities expenses (3800 + 1600) 5,400
Carriage outwards 1,500
Insurance expenses (7900 - 600) 7,300
Motor Vehicle 20000
Office Equipment 5625
Interest on loan (1232 + 1250) 2482
Bad debts expenses (3000 + 750) 3750
Selling expenses 8,800
Allowance for doubtful debts (26000-500-3000 x 5%) 1125
Total Expenses 85,182
Net Profit/Loss 13,250

required: Prepare the Statement of Financial Position as at 31st December 2022.

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