Question

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The following is a list of balance obtained from Pagoda Enterprise as at 31 ^st. August 2002.

	rm
Accounts payable	2,130
Accounts receivable	3,000
Bank.	3,780
Capital	15,000
Carriage inwards	460
Carriage outwards	375
Discount received	240
Import duties	475
Inventory (as at 1st September 2001)	2,210
Purchases.	10,876
Purchases return	560
Rent payable	1 ,450
Rent received	1 ,265
Salaries	1,101
Sales	12,690
Sales return	658
Vehicles	7,500

Additional information:

1 .     Inventory on 31 ^st August 2002 was valued at RM2,462.

2. Accrued revenue and expenses during the year were as follows:

i. Discount received RM173

ii. Rent payable RM400

3.         Prepaid revenue and expenses during the year were as follows:

i. Rent received RM330

ii. Carriage outwards     RM80

4.         Vehicles are depreciated at 20% per annum.

5.         Provision for doubtful debts is 10% of accounts receivables

From the above information, you are required to:

1. Prepare Statements of Profit or Loss (Income Statement) for Pagoda Enterprise for the year ended 31 st August 2002.
2. Prepare Statements of Financial Position (balance Sheet) as at that date.

*** How is it incomplete, pls be specific. I have checked the question again from the source i get. What you see is what i get from the source.

Answer 1

Hi, your question is complete. Please find the solution as below:

a). Preparation of income statement

PAGODA ENTERPRISE
Statement of Profit and Loss for the year ended 31st August, 2002
Particulars	Amount (RM)	Amount (RM)
Sales	12,690
Less Sales return	(658)
Net sales		12,032
Less Cost of Goods sold
Opening inventory	2210
Add: Purchases	10,876
Add: Carriage inwards	460
Less: Purchase return	( 560)
	12,986
Less Closing Inventory	(2,462)
		(10,524)
Gross Profit		1,508
Add : Other Income
Rent Received 1,265 Less Advance   (330)	935
Discount received 240 Add: Accrued rev.   173	413	1,348
Less : Expenses
Salaries	1101
Import Duty	475
Carriage outwards 375 Less : Prepaid Exp 80	295
Rent payable 1450 Add: Accrued Exp 400	1850
Provision for doubtful debts	300
Depreciation	1500	(5,521)
Net Loss		RM (2,665)

b. Preparation of statement of financial position

PAGODA ENTERPRISE
Statement of financial position
Particulars	Amount (RM)
ASSETS
Current Assets
Cash and cash equivalent	3,780
Accounts Receivable **	2,700
Inventory	2,462
Prepaid expenses (Carriage exp)	80
Accrued revenue (Discount )	173
	9,195
Non current assets
Vehicle	7500
Less Depreciation	(1500)
	6000
Total Assets	RM 15,195
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	2,130
Rent Received in advance	330
Rent payable	400
	2860
Equity
Capital	15,000
Less Net Loss	(2,665)
	12,335
Total liabilities and equity	RM 15,195

** Accounts receivable = : 3000

Less Provision for doubtful debts (300)

Net Accounts Receivable RM 2,700