The following trial balance was extracted from G. Smart Ltd's books on 31 December 2019.

Debit Credit

Heating and lighting 41,596

Salaries 124,648

Rent received 946

Telephone 8,967

Insurance 7,564

Allowance for doubtful debts 1,000

Accounts receivable and payable 105,260 71,700

Office equipment at cost 112,224

Discounts 1,100 1,410

Office equipment: accumulated depreciation (1.1.2019) 6,072

Computer equipment at cost 78,108

Computer equipment: accumulated depreciation (1.1.2019) 10,382

Inventory at 1.1.2019 19,086

Purchases and sales 256,783 614,784

Drawings 21,842

Cash at bank 11,650

Capital at 1.1.2019 82,534

788,828 788,828

Additional information:

i. Inventory at 31st December 2019 is RM17,801.

ii. Depreciation for the year is to be provided as follows:

Computer equipment 25% on net book value (NBV)

Office equipment 10% on cost.

iii. The amount shown for insurance on the trial balance includes a premium paid of RM1,000, which represents the annual insurance premium to 30th June 2020.

iV. Telephone total of RM2,560 have been incurred but not yet paid.

V. An allowance for doubtful debts of 5% of the accounts receivable is to be created.

Vi. During the year, G. Smart Ltd's owner took RM400 by cheque for his own use. This has not been recorded in the accounts.

Required:

(a) Prepare the statement of profit or loss for G. Smart Ltd for the year ended 31 December 2019.

(15 marks)

(b) Prepare statement of financial position for G. Smart Ltd for the year ended 31 December 2019.

(10 marks)

Question 2

Given the following transactions, you are required to post the transactions into their respective ledger accounts, balance off the accounts and extract a trial balance as at 31 July 2019.

July 1

3Tina invested RM10,000 cash and RM5,000 cheque in the business. Bought second-hand motorcycle, paid RM900 cash.

Bought land, paid RM6,000 cash. Paid salaries RM1,200 by cheque

Bought goods on credit from Johan RM3,000. Paid electricity bill for RM105 cash.

Sold goods on credit to Thierry RM1,500. Tina took cash for herself RM900.

Received rent in cash RM600. Cash sales RM5,000

Paid Johan by cash RM3,000.

Goods returned to us by Thierry RM200. Cash purchases RM2,000.

Goods sold to Tamara RM300 on credit. Bought goods RM300 by cheque.

Question 3

In 2019, Fabian Sdn. Bhd. plans to produce a new type of oyster sauce in its new factory and the information below was extracted from the operation's records:

Selling price

Direct materials Direct labor

Production: Variable overheads

Fixed overheads Fixed selling overheads Existing sales

Calculate the break-even point in kg and value.