QUESTIONS

a) Determine the profit or loss for the year ended 30 September 2019 (Use comparison method)

b) Explain TWO (2) disadvantages of using comparison method when determining profit or loss for accounting period from incomplete record.

Daisy operates a beauty salon. She does not keep proper records for her business transactions. The valuation for her business assets and liabilities are estimated as follows: 1 Jan 2019 31 Dec 2019 RM RM Premises 40,000 40,000 Fixture and Fittings 12,000 15,000 Equipment 10,000 16,000 Supplies 6,000 7,000 Bank 5,000 8,000 Acc. Payables 9,000 10,000 Loan 18,000 18,000 Daisy also withdrew RM2,000 cash on 1 July 2019 and she had also contributed RM5,000 cash as additional capital on 30 November 2019