Question
Sogut Enterprise is a merchandising company which has business operations in Cyberjaya. The following balances have been extracted from the books as at 31 December
Sogut Enterprise is a merchandising company which has business operations in Cyberjaya. The following balances have been extracted from the books as at 31 December 2019.
Debit (RM) Credit (RM)
Purchases and Sales 97,500 150,000
Discount allowed and discount received 400 750
Carriage inwards 550
Carriage outwards 300
Return inwards and return outwards 4,000 3,500
Inventory as at 1 January 2019 16,000
Advertising 1,250
Dividend received 300
Rental 3,000 3,900
Bad debt 1,800
Salary 9,000
Utilities 1,500
Insurance 2,000
Cash 2,600
Bank 7,600
Account receivables and account payables 50,000 68,500
Capital 154,950
Loan from Maybank 90,000
Freehold premises 200,000
Furniture 8,000
Motor vehicles 52,000
Investment 32,000
Accumulated depreciation Furniture 3,200
Accumulated depreciation Motor vehicles 15,600
Drawing 1,200
490,700 490,700
Additional information:
1. Inventory as at 31 December 2019 was valued at RM52,000.
2. Rental received is for the period from 1 January 2019 to 31 March 2019.
3. RM200 of utilities was paid in advance.
4. The owner had withdrawn RM1,300 goods for his family use and no record was made.
5. Additional bad debts of RM1,100 was to be written off.
6. Insurance amounting RM1,000 was still outstanding at the end of the accounting period.
7. Depreciation is to be charged as follows:
i) Furniture - 20% per annum on cost, straight-line method.
ii) Motor vehicles - RM5,200 per year.
8. Interest on loan at 5% per annum has not been paid.
Required:
a) Prepare the statement of profit or loss for the year ended 31 December 2019. (15 marks)
b) Prepare the statement of financial position as at 31 December 2019. (10 marks)
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