Question

Question 1
Balances of account for Chin Chai Smartshop as at 31 December 2010 are shown below:
RM
Cash 800
Debtors 5,800
Creditors 9,940
Stocks as at 1 January 2010 5,985
Insurance 360
Office equipment at cost 8,000
Provisions for depreciation for office equipment 800
Import duty 540
Commission received 1,580
Vehicles at cost 12,000
Provisios for depreciation for vehicles 1,200
Return inwards 780
Return outwards 695
Purchases 39,950
Sales 67,575
Bank 13,600
Discount received 420
Discount allowed 485
Salary and wages 3,930
General expenses 425
Rental received 7,800
Vehicles maintenance 1,350
Drawings 675
Bad debts 150
Provision for doubtful debts 225
Shop building 35,000
Maintenance of shop building 300
Capital ?








Additional information:
1) Stock as at 31 December valued at RM5,995.
2) Office equipment and vehicles will be depreciated at 10% per annum using reducing balance method.
3) Provisions for doubtful debts were adjusted at 3% on total debtors.
4) Drawings of cash amounting RM420 for personal used has not been recorded in any books of accounts yet.
5) Accrued commission received is RM55.
6) Part of the shop was rental out to third party at agreed rate of RM600 per month.
7) Salary and wages was underpaid for the month of December by RM1,600.

Required:

a) Calculate the capital amount as at the date.                                                        

b) Income Statement for the year ended 31 December 2010.                               

c) Balance sheet as at the date.                                                                            
(Total: 25 Marks)

Answer 1