Question 2:

The following is the trial balance of Setia Bersatu as at 30 June 2015.

	Debit(RM)	Credit(RM)
Land	100,000
Buildings at cost	100,000
Machinery at cost	80,000
Accumulated depreciation (1 July 2014) Buildings Machinery		70,000 15,200
Purchases and Sales	85,000	150,000
Discounts		7,000
Inventory as at 1 July 2014	25,000
Capital		42,500
Drawings	2,000
Bank overdraft		15,000
Cash in hand	200
Allowances for doubtful debts		1,100
Accounts receivable and payable	18,000	49,000
Carriage inwards	2,000
Returns inwards	2,000
Salaries	4,000
Bad debts	2,000
Rent	4,600
Bank loan		75,000
	424,800	424,800

The following information as at 30 June 2015:

(a) Salaries are accrued by RM3,500

(b) Inventory as at 30 June 2015 had been valued at RM8,000.

(c) Allowance for bad debts should be adjusted to 5% of the closing debtors balances.

(d) Depreciation for the year ended 30 June 2015 should be provided as follows:

Buildings 10% on cost

Machinery 10% on reducing balance

(e) Rent are prepaid by RM500.

Prepare Setia Bersatus Statement of Profit or loss for the year ended 30 June 2015 and Statement of financial position as at that date.