Tutorial : Financial statement with adjustment

Note to tutor : Kindly use Microsoft Excel to do the working for these two questions as at below and look upon the format attached at the bottom for the format for the working of answers .

Q1:

B C D E 1 Nila opens a business in Petaling Jaya. Below is the trial balance as at 31 December 2019: Debit Credit RM RM 5 Purchase and Sales 142,000 285,560 soci 6 Discount (allowed) 580 soci 7 Return 700 500 soci 8 Rent and rates 3,600 soci 9. Capital 87,000 sofp 10 Drawing 5,000 sofp 11 Insurance 300 soci 12 Bank 161,145 sofp 13 Accounts receivables and accounts payable 4,500 3,625 sofp 14 Office Furniture (cost) 6.700 sofp 15 Accumulated depreciation for office furniture 1,340 sofp + current depreciation 16 Machinery (cost) 20,000 sofp 17 Accumulated depreciation for machinery 3,000 sofp + current depreciation 18 Commission receivable 9,000 soci 19 Salaries 26,100 soci 20 Loans - Shahid 5,000 sofp 21 Inventory as at 1 January 2019 12,000 soci 22 Utilities 9,600 soci 23 Sundry expenses 2,400 soci 24 Carriage inwards 800 soci 25 Allowance for doubtful debts 400 sofp + current doubtful debts 26 395,425 395,425 2727 28 29 Additional information: 30 31 a) Closing inventory was RM14,000 32 33 b) Commission receivable accrued at 31 December 2019 RM800. 34 35 c) Utilities was paid in advance RM200 36 37 d) Provide the allowance for doubtful debts 3% from accounts receivables. 38 39 e) Allowance for depreciation are: 40 Office furniture - 10% per annum on cost. 41 Machinery -15% on reducing balance method. 42 43 Required: 44 45 a) Prepare the statement of profit or loss and other comprehensive income for the year ended 31 December 2019 46 47 b) Prepare the statement of financial position as at 31 December 2019. 48 49Additional information: 29 a) Stock on 31 December, RM10,000 30 b) Rent prepaid RM100 31 c) Allowance for doubtful debts to be raised to RM190 32 d) Allowance for depreciation of machinery at 10% on reduced balance. 33 e) Utilities accrued RM50 34 as You are required to: 36 *7 A. Prepare a statement of profit or loss and other comprehensive income for the year ended 31 December 2017. 38 B. Prepare the statement of financial position as at 31 December 2017. 40Additional information: 29 a) Stock on 31 December, RM10,000 30 b) Rent prepaid RM100 31 c) Allowance for doubtful debts to be raised to RM190 32 d) Allowance for depreciation of machinery at 10% on reduced balance. 33 e) Utilities accrued RM50 34 as You are required to: 36 *7 A. Prepare a statement of profit or loss and other comprehensive income for the year ended 31 December 2017. 38 B. Prepare the statement of financial position as at 31 December 2017. 40The Trial Balance of Ahmad and Co as at 31 December 2016 is shown as below: Debit Credit RM RM Capital 10,000 Drawings 100 Machinery 3,000 Allowance for depreciation of Machinery 600 Cash at bank 4,500 10 Cash in hand 100 1 Sales 62,550 12 Purchases 50,000 13 Rent 3,000 14 Salaries 8,000 15 Stock, 1 January 3,000 16 Stationery 2,000 17 Utilities 400 18 Office expenses 300 19 Accounts receivables 2,000 20 Allowance for doubtful debts 21 Accounts Payable 150 22 Bad debts 2,500 100 23 Discount received 24 Discount allowed 500 25 Commission received 200 26 400 76,700 76,700The Trial Balance of Ahmad and Co as at 31 December 2016 is shown as below: Debit Credit RM RM Capital 10,000 Drawings 100 Machinery 3,000 Allowance for depreciation of Machinery 600 Cash at bank 4,500 10 Cash in hand 100 1 Sales 62,550 12 Purchases 50,000 13 Rent 3,000 14 Salaries 8,000 15 Stock, 1 January 3,000 16 Stationery 2,000 17 Utilities 400 18 Office expenses 300 19 Accounts receivables 2,000 20 Allowance for doubtful debts 21 Accounts Payable 150 22 Bad debts 2,500 100 23 Discount received 24 Discount allowed 500 25 Commission received 200 26 400 76,700 76,700Insurance Carriage outward Sundry expenses Allowance for doubtful debt Allowance for depreciation Stationery Postages X X X X X X X Bank charges Interest on loan X Maintenance X (X) Net profit XInsurance Carriage outward Sundry expenses Allowance for doubtful debt Allowance for depreciation Stationery Postages X X X X X X X Bank charges Interest on loan X Maintenance X (X) Net profit XABC ENTERPRISE Statement of financial position as at 31 December 20XX RM RM RM Non-current assets Premises X Less) Allowance for depreciation ( x ) X Office equipment X Less) Allowance for depreciation (x ) X XX Current assets Inventories X Account receivables X Less) Allowance for doubtful debts (x) X Cash at bank X Cash in hand X XX Advance / Prepaid expenses Total Assets XX Finance by: Capital X Add) Net profit IX X Less) Drawing ( x) X Non-current liability Long term loan X Current liability Account payables XABC ENTERPRISE Statement of financial position as at 31 December 20XX RM RM RM Non-current assets Premises X Less) Allowance for depreciation ( x ) X Office equipment X Less) Allowance for depreciation (x ) X XX Current assets Inventories X Account receivables X Less) Allowance for doubtful debts (x) X Cash at bank X Cash in hand X XX Advance / Prepaid expenses Total Assets XX Finance by: Capital X Add) Net profit IX X Less) Drawing ( x) X Non-current liability Long term loan X Current liability Account payables XCurrent liability Account payables X Bank overdraft X X Owing/Accrual expenses X XXCurrent liability Account payables X Bank overdraft X X Owing/Accrual expenses X XXABC ENTERPRISE Statement of profit or loss and comprehensive income for the year ended 31 December 20XX RM RM RM Sales XX Less) Sales return ( return inward) (XX) Net sales XX Less) Cost of Goods Sold Opening Stock X Purchases X Less) Purchase return (return outward) (X) Net Purchase X Carriage inwards X Import Duty X X Less) Closing stock (X) XX (COGS) Gross Profit X Add) Other Income Discount receivable X Rent receivable X Commission receivable Total revenue Less) Expenses Discount allowed Utilities Bad debts Rent X x X x Wages and salaries InsuranceABC ENTERPRISE Statement of profit or loss and comprehensive income for the year ended 31 December 20XX RM RM RM Sales XX Less) Sales return ( return inward) (XX) Net sales XX Less) Cost of Goods Sold Opening Stock X Purchases X Less) Purchase return (return outward) (X) Net Purchase X Carriage inwards X Import Duty X X Less) Closing stock (X) XX (COGS) Gross Profit X Add) Other Income Discount receivable X Rent receivable X Commission receivable Total revenue Less) Expenses Discount allowed Utilities Bad debts Rent X x X x Wages and salaries Insurance