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 The owner had withdrawn RM1,300 goods for his family use and no record was made.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

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

Solutions

Expert Solution

a) statement of profit or loss for the year ended 31 December 2019

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

jeff jeffy answered 2 years ago
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