Question 3

The following Trial Balance was extracted from the books of ZZZ Manufacturing as at 31 December 2019.

ZZZ Manufacturing

Trial Balance as at 31 December 2019

Debit (RM)

Credit (RM)

Accounts

Cash

68,000

Beginning inventories

24,300

Bank

106,000

Prepaid bills

3,000

Sales

104,900

Purchase

34,600

Custom duties

890

Salaries

13,000

Carriage inwards

190

Heat and lighting expense

7,500

Allowance for Doubtful Debts (AFDD)

550

Insurance

6,000

.

Bad debts

290

Debtors

34,000

Machineries

100,000

Fittings and furniture

43,000

Accumulated depreciation- machineries

20,000

Accumulated depreciation-fittings and furniture

6,450

Rental accrued

1,000

Carriage outwards

410

Commission income

6,500

Discount received

5,380

Advertisement

8,400

Creditors

12,300

Drawings

7,500

Loan

100,000

Capital

200,000

457,080

457,080

Additional information:

1.Closing stock as at 31 December 2019 was RM32,400.

2.The owner took cash amounted of RM900 for personal use.

3.Advertisement of RM2,200 was still outstanding as at 31 December 2019.

4.One of the employee was given an advance salary of RM1,000.

5. Bad debt of RM700 was identified to be written off.

6.Depreciation for the year are as follows:

Machineries- 10% on cost

Fittings and furniture- 15% on net book value

7.Allowance for doubtful debts is increase by RM120.

Required:

(a)Prepare Statement of Comprehensive Income for the year ended 31 December 2019 and;(10 marks)

(b)Statement of Financial Position as at 31 December 2019.(15 marks)