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Question 3 The Martin Mart is a sole proprietorship owned by Mr. Martin which has been...

Question 3
The Martin Mart is a sole proprietorship owned by Mr. Martin which has been in operation for a year. Mr. Martin has kept track of his transactions and wishes to know whether or not he earned a profit. The following is the balance of the accounts as at 31 December 2011.
RM
Utility expenses 13,400
Stocks as at 1 January 2009 45,000
Stationeries 350
Staff salaries 55,000
Sales salaries 7,000
Sales 416,000
Purchases 222,000
Purchase return 9,800
Office rental 22,000
Motor vehicles 240,000
Motor expenses 1,880
Land and building 665,000
Interest received 600
Interest on loan 8,000
Import duty 4,100
General expenses 1,300
Furniture 126,800
Drawings 3,550
Discount received 2,250
Discount allowed 3,590
Debtors 16,330
Creditors 28,870
Capital ?
Cash 5,550
Carriage outwards 1,150
Bank loan 110,000
Bank 332,000
Bad debts 2,230

Additional information:
1. Depreciation are to be provided as follows:
i. Motor vehicles at 10% per annum.
ii. Furniture at 15% per annum.

2. Interest on loan was charged at 10% per annum and office rental is RM2,000 per month.

3. Accrued interest received as at the date is RM480.

4. Physical count of the stock at the end of the period amounts to a value of RM50,000.

5. On 31 December 2011, Mr. Martin took out goods for personal use amounting RM3,000 and there is no record made in any books of accounts.


Required:
a) Calculate the capital amount.                                                                                  

b) Prepare Income Statement for the year ended 31 December 2011.                  

c) Prepare Financial Position Statement (Balance Sheet) as at the date.              
(Total 40 Marks)


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