Question 2

The following trial balance has been extracted from the ledger of Nora Ariyana , a sole trader as at 31 May 2019, the end of her most recent financial year.

	Debit (RM)	Credit (RM)
Property at cost	90,000
Equipment at cost	57,500
Provision for depreciation (as at 1 June 2018)
Property		12,500
Equipment		32,500
Inventories as at 1 June 2018	27,400
Purchases	259,600
Sales revenue		405,000
Discount allowed	3,370
Discount received		4,420
Salaries	52,360
Bad debts	1,720
Loan interest	1,560
Carriage outwards	5,310
Other operating expenses	38,800
Trade receivables	46,200
Trade payables		33,600
Provision for bad debts		280
Cash on hand	151
Bank overdraft		14,500
Drawings	28,930
13% loan		12,000
Capital		98,101
	612,901	612,901

The following additional information as at 31 May 2019 is available:

1. Inventories as at the close of business were valued at RM25,900.
2. Depreciation for the year ended 31 May 2019 has yet to be provided as follows:

Property: 1 percent using the straight-line method

Equipment : 15 per cent using the straight line method.

3. Salaries are accrued by RM140.
4. Other operating expenses include certain expenses prepaid by RM500. Other expenses included under this heading are accrued by RM200.
5. The provision for bad debts is to be adjusted so that it is 0.5 percent of trade receivables as at 31 May 2019.
6. Purchases include good valued at RM1,040 that were withdrawn by Nora Ariyana for her own personal use.

Required:

1. Prepare statement of profit and loss for the year ended 31 May 2019.

(20 Marks)

2. Prepare statement of financial position as at 31 May 2019.

(10 Marks)

Question 2 The following trial balance has been extracted from the ledger of Nora Ariyana.. a sale trader as at 31 May 2019, the end of her most recent financial year. Dabit (RM Credit (RM) Property at cost 90 al Equipment at cost 57 500 Provision for depreciation ( AA: 1 June 2018) - Equipment Inventaries AS 1 Iune 2018 Purchases 27.40 259 609 3370 52 360 Discount Lomad I Discount received Salaries I Bed cebis Loan interest Cartigo oulwards Other operating expen29 Trade receivables Trade payables Provision for bad deuts Cash on hard Bank overcraft Drawings | 13% laan 1.560 5.310 38.800 48. 200 33,600 250 151 14,500 20.930 12.000 98,101 $12.901 6122901 The following additional information as at 31 May 2019 is available: Inventories as at the case of business were valued at RM25.900. ii) Depreciation for the year orded 31 May 2019 has yet to be provided as follows: Property: 1 percent using the straight line method Equipment: 15 per cent using the straight line method. Salaries are accrued by RM140. iv) Other operating expenses include ourlain uxpurises prepaid by RM500. Other expenses Included under this heading are accrued by RM200 VI The provision for bad debts is to be adjusted so that it 8 0.5 percent of trade receivables as at 31 May 2019 M 'Purchas' include pood valued at RM1,040 that were withdrawn by Nora Ariyana. for her own parsonal use. Required: a) Prepare statement of profit and loss for the year ended 31 May 2019 (20 Marks) b) Prepare statement of financial position as at 31 May 2019.