Question 3

NOTE : PLS CAN I HAVE A NEAT HAND WRITTING OR DONE IN LAPTOP AS I CANT UNDERSTAND SOME BAD HANDWRITTING . THANK YOU VERY MUCH I DO APPRECIATE YOUR TIME AND EFFORT

Aroma Trading is a sundry shop business owned by Mr Amin. The following trial balance for his business as at 31 December 2018 was extracted from his books:

Aroma Trading

Trial Balance as at 31 December 2019

	Debit (RM)	Credit (RM)
Inventory on 1 January 2019	45,000
Cash	950
Bank	4,000
Accounts receivable	6,000
Accounts payable		12,000
Capital		80,000
Shop premises	100,000
Shop fittings	30,000
5 year 10% p.a. bank loan		25,000
Sales		320,000
Return inwards	3,000
Purchases	220,000
Return outwards		2,000
Carriage inwards	400
Carriage outwards	500
Drawings	600
Discount allowed	200
Discount received		600
Utilities expenses	1,800
Insurance expenses	900
Interest on loan	1,250
Wages and salaries	25,000
	439,600	439,600

Additional information:

1. Inventory as at 31 December 2019 amounting to RM38,000.
2. Interest on bank loan for half a year was unpaid.
3. Insurance expense included RM100 which was for the next accounting period.
4. Utilities estimated to be RM160 was expected to be paid for December 2018 but the bills were not yet received.
5. The owner took RM500 of the goods from the shop for personal use.
6. The owner withdrew cash of RM300 for a dinner celebration with his family.
7. Bank interest of RM80 was estimated to be earned on the bank balances of the business but this has not yet been received or recorded by the firm.
8. It was decided to depreciate shop fittings at 10% per annum and shop premises at 15% per annum using straight line method.
9. Provision for doubtful debts is estimated to be at 5% of account receivable.

Required:

1. Prepare a Statement of profit and loss for the year ended 31 December 201.9

(15 Marks)

2. Prepare a Statement of Financial Position as at 31 December 2019.

(15 Marks)

(Total: 30 Marks)

NOTE : PLS CAN I HAVE A NEAT HAND WRITTING OR DONE IN LAPTOP AS I CANT UNDERSTAND SOME BAD HANDWRITTING . THANK YOU VERY MUCH