Required to answer ALL the questions and answers must be shown clearly.
Question 2 Additional information: Below is the Trial Balance of L&G Trading as at 31 December 2019: i. Stocks on 31 December 2019 was RM45,360. ii. Fixed assets are to be depreciated at 20% on cost. RM RM iii. Electricity charges payable as at 31 December 2019 was RM1,250. iv. Provision for doubtful debts is set at 2%. Capital 300,000 Computer & Software 30,000 Required: Office Equipment 12,500 a. Prepare the Statement of Comprehensive Income for the year ended 31 December 2019. (12 marks) Motor Vehicles 285,000 b. Prepare the Statement of Financial Position as at 31 December 2019. Sales 885,500 (8 marks) Purchases 525,000 Sales Returns 3, 150 Purchases Returns 1.550 Camage Inwards 1,450 Fire Insurance 2,640 Rental 72,000 Water & Electricity 24,650 Salaries 108,000 Sundry Expenses 750 Printing & Stationery 880 Telephone Charges 3,430 Opening Stocks 42,350 Incentive 5,700 Discount Received 650 Cash in Hand 2,550 Cash at Bank 19,620 Trade Receivables 74:500 Trade Payables 26,470 1,214,170 1,214,170Question 4 a. Ahmad bought a new equipment at RM120,000 on 1 July 2017. He was undecided whether to depreciate the equipment using straight line method or reducing method at 20% per annum. The equipment is expected to have no residual value. You are required to calculate the amount of depreciation to be charged against each financial year ending 31 December 2017, 31 December 2018 and 31 December 2019 using the straight line method and reducing balance method. Show your answer in the following format: Financial Year ending : | Straight Line Method Reducing Balance Method RM RM 31 December 2017 31 December 2018 31 December 2019 (9 marks) b. The following are balances brought forward from 31 December 2018 for KC Deco Center: RM RM Motor Vehicles 100,000 Less: Provision for (20,000) depreciation 80,000 The motor vehicles were depreciated at 15% per annum using reducing balance method. KC bought a new vehicle on 1 October 2019, cost of the new vehicle was RM120,000. You are required to prepare the following accounts for financial year ending 31 December 2019: The Motor Vehicle Account ii. The Provision for Depreciation Account (11 marks)Question 5 The Trial Balance of Deco Enterprise as at 31 December 2019 shows the following: RM RM Incentive Received 25,600 Interest Paid 12, 100 Rental Received 91,000 Insurance 2.400 The financial year for Deco Enterprise ends on 31 December every year. Below is the additional information as at 31 December 2019: Incentive receivable is RM7,560 ii. Interest incurred for the financial year is RM13,450 iii. Rental received per annum should be RM84,000 iV. Insurance was paid for the period from October 2019 to September 2020 Required: a. Adjusting journal entries to account for the additional information above. (8 marks) b. Update the above accounts accordingly. (12 marks)
