VICTORIA ENT: ADJUSTMENT AND FINAL ACCOUNT PREPARATION The following trial balance was extracted from the book of Victoria Enterprise as at 31 December 2012 LIST OF ACCOUNTS DEBIT (RM) CREDIT (RM) Capital 331,180 Land and building 150,000 Plant and machinery 65,000 Furniture and fittings 30,000 Motor vehicles 89,000 7% Loan from Union Bank 70,000 Purchases and Sales 35,000 100,500 Inventories as at 1 January 2012 29,000 Return inwards and Return outward 3,500 2.000 Carriage inward 2,500 Carriage outward 1,500 Discount allowed and Discount received 500 700 8% Fixed deposit 50,000 Cash in hand 8,000 Cash at bank 25,000 Commission received 450 Account receivables and Account payables 19,000 10,000 Salaries and wages 20,000 Electricity and water 10,000 Rental expenses 10,000 Bad debt 400 Allowance for doubtful debt 270 Interest on fixed deposit 4,000 Drawings 700 Accumulated depreciation as at 1 January 2012: Plant and machinery 6,500 Furniture and fittings 5,700 Motor vehicles 17,800 549,100 549.100 Additional Information: 1. Inventories as at 31 December 2012 was valued at RM19,000. 2. Victoria Enterprise had 2 workers and they were paid RM800 per month. Both workers received in advance half of their salaries in December 2012. 3. RM2,000 of rental was still accrued. 4. Lygon Trading, one of the customers, was having financial difficulties and hence unable to settle their debts. The customer still owed RM350. Victoria Enterprise decided to write off the debts under allowance method. 5. Allowance for doubtful debt is to be increased to 3% of the remaining accounts receivable. The Loan from Union Bank was taken on 1 October 2012 No interest payment has yet been made. 6. 7. Depreciation for the year were to be provided as follows: Plant and machinery 10% per annum on cost Furniture and fittings 10% per annum on book value Motor vehicles 10% per annum on cost The owner of Victoria Enterprise withdrew goods worth RM400 for his personal use. The transaction was not recorded anywhere in the accounts. 8. Required: a. Prepare a Statement of Profit or Loss (Statement of Comprehensive Income) for the year ended 31 December 2012 (16 marks) b. Prepare a Statement of Financial Position as at 31 December 2012. (12 marks) (Total: 30 marks)