Question

In: Accounting

Question 2 The following trial balance was extracted from the books of R Giggs at the...

Question 2
The following trial balance was extracted from the books of R Giggs at the close of business on 28 February 2007.
Dr Cr
RM RM
Purchases 92,800
Sales 157,165
Cash at bank 4,100
Cash in hand 324
Capital 11,400
Drawings 17,100
Office furniture 2,900
Rent 3,400
Wages and salaries 31,400
Discount received 160
Discount allowed 820
Accounts receivable 12,316
Accounts payable 5,245
Inventory 1/3/2006 4,120
Provision for doubtful debts 405
Motor vehicles 3,750
Motor expenses 615
Bad debts 730
174,375 174,375

Additional information:
1. Inventory as at 28/2/2007 was RM2,400.
2. Wages and salaries accrued at 28/2/2007 RM340.
3. Rent prepaid at 28/2/2007 RM230.
4. Motor expenses owing at 28/7/2007 RM72.
5. Increase in provision for doubtful debts by RM91.
6. Provide for depreciation as follows: office furniture RM380, motor vehicles RM1,250.
Required:
Draw up the Income Statement (Profit and Loss) for the year ended 28/2/2007 together with a Financial Positions (Balance Sheet) as at 28/2/2007.

Question 2
The following trial balance was extracted from the books of R Giggs at the close of business on 28 February 2007.
Dr Cr
RM RM
Purchases 92,800
Sales 157,165
Cash at bank 4,100
Cash in hand 324
Capital 11,400
Drawings 17,100
Office furniture 2,900
Rent 3,400
Wages and salaries 31,400
Discount received 160
Discount allowed 820
Accounts receivable 12,316
Accounts payable 5,245
Inventory 1/3/2006 4,120
Provision for doubtful debts 405
Motor vehicles 3,750
Motor expenses 615
Bad debts 730
174,375 174,375

Additional information:
1. Inventory as at 28/2/2007 was RM2,400.
2. Wages and salaries accrued at 28/2/2007 RM340.
3. Rent prepaid at 28/2/2007 RM230.
4. Motor expenses owing at 28/7/2007 RM72.
5. Increase in provision for doubtful debts by RM91.
6. Provide for depreciation as follows: office furniture RM380, motor vehicles RM1,250.
Required:
Draw up the Income Statement (Profit and Loss) for the year ended 28/2/2007 together with a Financial Positions (Balance Sheet) as at 28/2/2007.    

Solutions

Expert Solution

R Giggs
Income Statement
Year Ended 28/2/2007
Amount in RM
Revenue:
Sales              157,165
Discount Received                       160
Total Revenue              157,325
Expenses:
Cost of Goods sold ( 4,120 + 92,800 - 2,400 )                  94,520
Discount allowed                       820
Rent Expense (3,400 - 230 )                    3,170
Wages & Salaries expense (31,400 + 340 )                  31,740
Motor expenses ( 615 + 72 )                       687
Depreciation Expense (380 + 1,250 )                    1,630
Bad Debts ( 730 + 91 )                       821
Net Income                 23,937
R Giggs
Financial Position as at 28/2/2007
Assets Amount in RM
Non-current assets
Office Furniture , Net of Depreciation (2,900 - 380 )                    2,520
Motor Vehicles   , Net of Depreciation (3,750 - 1,250 )                    2,500
Current assets
Cash at bank                    4,100
Cash in hand                       324
Accounts Receivables, net of provision for doubtful debt (12,316 - (405 + 91 ) )                  11,820
Inventory 28/2/2007                    2,400
Prepaid Rent                       230
Total Assets                 23,894
Owner's Equity & Liabilities
Owner's Equity
Capital ( 11,400 + 23,937 - 17,100 )                  18,237
Current Liabilities
Accounts Payable                    5,245
Motor expense payable                         72
Wages & Salaries Payable                       340
Total Owner's Equity & Liabilities                 23,894

Related Solutions

The following trial balance has been extracted from the books and records of Carpets R Us...
The following trial balance has been extracted from the books and records of Carpets R Us Limited, a registered company, on the 30th September 2019: £ £ Premises at cost 300,000 Motor Vehicles at cost 25,000 Trade Receivables/Payables 72,000 24,320 Accumulated Depreciation on motor vehicles b/f 9,000 Inventory at 1st October 2018 52,500 Cash at bank and in hand 60,875 Debenture Interest paid 2,250 Retained profit b/f 55,250 Purchases 545,325 General expenses 20,450 Revenue 865,400 Issued ordinary shares @ £0.50...
The following trial balance was extracted from the books of Robert Kiyosaki Books Shop at the...
The following trial balance was extracted from the books of Robert Kiyosaki Books Shop at the close of business on the 28 February 2017. Dr Cr Purchases and Sales 550,280 820,500 Cash at Bank 1,500,000 Cash in hand 50,000 Capital account 1 March 2016 1,470,080 Drawings 12,000 Office Furniture 25,000 Accumulated depreciation – Office Furniture 1,800 Returns inwards and outwards 19,000 12,000 Rent 30,000 Wages and Salaries 55,800 Discounts 8,000 20,000 Debtors and Creditors 40,000 18,000 Inventory 1 March 2016...
QUESTION 1 The following trial balance was extracted from the books and records of Macaroon Limited...
QUESTION 1 The following trial balance was extracted from the books and records of Macaroon Limited as at 31 December 2015. Debit Credit £’000 £’000 Sales 2,347 Inventory at 1 January 2015 542 Purchases 1,932 Selling and distribution costs 87 Administrative expenses 21 Land – cost 750 Buildings – cost 3,500 Buildings – accumulated depreciation at 1 January 2015 415 Equipment – cost 530 Equipment – accumulated depreciation at 1 January 2015 83 Vehicles – cost 42 Vehicles – accumulated...
The following trial balance was extracted from the books of MNZ Bhd as at 31 December...
The following trial balance was extracted from the books of MNZ Bhd as at 31 December 2019. MNZ Bhd Trial Balance as at 31 December 2019 Debit RM’000        Credit        RM’000 Turnover 440,000 Inventory at 1 January 2019 5,000 Trade receivables and payables 30,000 27,500 Purchases 200,000 Administrative salaries 49,000 Selling and distribution expenses 32,500 Other expenses 2,750 Investment 117,000 Cash in hand and bank 5,250 Director’s remuneration 17,000 Auditor’s fees 1,500 Ordinary share capital -200 million shares as...
The following trial balance was extracted from the books of HoodRobin Bhd as at 31 December...
The following trial balance was extracted from the books of HoodRobin Bhd as at 31 December 2019. HoodRobin Trial Balance as at 31 December 2019     Debit      ’000       Credit ’000 Turnover 880,000 Inventory at 1 January 2019 10,000 Trade receivables and payables 60,000 55,000 Purchases 400,000 Administrative salaries 98,000 Selling and distribution expenses 65,000 Finance expenses 5,500 Investment 234,000 Cash in hand and bank 10,500 Director’s remuneration 34,000 Auditor’s fees 3,000 Ordinary share capital -400 million shares as...
The following trial balance was extracted from the books of Mike Karuvadu on 31 Dec 2018....
The following trial balance was extracted from the books of Mike Karuvadu on 31 Dec 2018. From it and the note inventory, prepare his Statement of Profit or Loss for the year ending 31 Dec 2018 and a Statement of Financial Position as at that date:                                                                                                 Dr                    Cr                                                                                                 $                      $ Sales                                                                                                                216,420 Purchases                                                                                109,680 Inventory: 1 Jan 2018                                                             10,410 Carriage outwards                                                                  2,115 Carriage inwards                                                                     1,840 Return inwards                                                                       5,900 Return outwards                                                                                             6,720 Salaries and wages                                                                  42,800 Motor expenses                                                                      ...
The following trial balance has been extracted from the books of Mr Momoh as at 31...
The following trial balance has been extracted from the books of Mr Momoh as at 31 March 2019 Le000 Le000 Administrative expenses       250 Distribution costs 295 Share capital (all ordinary share of Le 1.00)   270 Share premium 80 Revaluation reserve 20 Dividend    27 Cash at bank and in hand 3 Receivables        233 Interest paid    25 Dividend received    15 Interest received 1 Land and building at cost (land 380 building Le 100) 480 Land and building...
The following trial balance has been extracted from the books of Mr Momoh as at 31...
The following trial balance has been extracted from the books of Mr Momoh as at 31 March 2019 Le000 Le000 Administrative expenses       250 Distribution costs 295 Share capital (all ordinary share of Le 1.00)   270 Share premium 80 Revaluation reserve 20 Dividend    27 Cash at bank and in hand 3 Receivables        233 Interest paid    25 Dividend received    15 Interest received 1 Land and building at cost (land 380 building Le 100) 480 Land and building...
Q6. The following trial balance has been extracted from the books of Abrantier Enterprises as at...
Q6. The following trial balance has been extracted from the books of Abrantier Enterprises as at 31st May 2019                                                                          Dr                            Cr                                                                         Gh¢                          Gh¢ Advertising                                                  46,000 Bank                                                              6,000 Cash                                                               2,000 Capital                                                                                         1,114,000 Discount allowed                                          2,000 Discount received                                                                           12,000 Drawings                                                    340,000 Electricity                                                     26,000 Investment                                                    80,000 Investment income received                                                          8,000 Office equipment                                       200,000 Trade Creditors                                                                           104,000 Other creditors                                                                              16,000 Trade debtors                                             130,000 Other debtors                                               30,000 Machinery                                                  400,000 Purchases                                                   428,000 Purchases return                                                                            28,000 Sales                                                                                         1,260,000 Sales return                                                  60,000 Stationery                                                     18,000 Wages                                                        774,000...
The following unadjusted trial balance was extracted from the books of Carol’s Trading Company at December...
The following unadjusted trial balance was extracted from the books of Carol’s Trading Company at December 31, 2017, the end of the company’s fiscal year. The company is owned by Carol Williams who trades in the business of buying and selling household consumables. Carol’s Trading Company Trial Balance as at December 31, 2017 A/C Name DR $ CR $ Cash 250,000 Accounts Receivable 340,000 Allowance for Bad Debts 25,000 Merchandise Inventory 210,000 Store Supplies 120,000 Prepaid Insurance 156,000 Office Furniture...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT