Question 2

From the following trial balance of C Roddy, after her first year's trading, you are asked to draw up a trading and profit and loss account for the year ended 30 June 2023.

	Dr	Cr
	RM	RM
Sales		88,321
Purchases	98,777
Capital		68,744
Accounts receivable	16,000
Bad debts	19
Accounts payable		5,645
Bank		6,554
Cash in hand	5,443
Premises	8,800
Fixtures and fittings	10,000
Accumulated depreciation of fixtures and fitting		2,000
Accumulated depreciation of equipment		1,000
Equipment	12,500
Advertising	894
Wages	6,555
Drawings	5,444
Sundries expenses	577
Opening Inventory	5000
Rent	1,855
Allowances for doubtful debts		300
Insurance	1,200
	173,064	173,064

Additional Information

• Closing stock at the end of the year was valued at RM8,000
• Accrued wages RM1,000
• Rent prepaid RM300.
• The allowance for doubtful debts to be increased to 2% of accounts receivable.
• Insurance account outstanding RM220
• Depreciate fixtures and fittings at 10% per annum on cost and Equipment at 10% per annum using reducing balance method.

 

You are required to prepare:

Financial Statement