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Sogut Enterprise is a merchandising company which has business operations in Cyberjaya. The following balances have...

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):150,000 750

Credit (RM)

Purchases and Sales 97,500

discount received 400   

Carriage inwards 550

Discount allowed and   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 The owner had withdrawn RM1,300 goods for his family use and no record was made.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.

b) Prepare the statement of financial position as at 31 December 2019.

Solutions

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Solution:

here is the solution.thank you

ekkarill92 answered 2 years ago
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