Answer to Question #308087 in Accounting for atans

Question

Trial balance of GM as at 31 December 2021 Debit(RM) Credit(RM)

Sales 126,500

Purchases 99,850

Premises (cost) 100,000

Accumulated depreciation at 1 January 2021_Premises 25,000

Plant (cost) 18,000

Accumulated depreciation at 1 January 2021_Plant 2,300

Wages and salaries 8,900

Rent expense 7,500

Closing inventories RM12,500.

Capital at 1 January 2021 80,000

Drawings 25,000

Carriage inwards 4,000

Account receivables and Account payables 27,500 16,000

Bad debts written off 5,000

Other revenue 2,000

Cash at bank 18,950

Bank loan 30,000

300,750 300,750

Additional information at 31 December 2021:

i.Wages and salaries accrued amount to RM700.

ii. Rent prepaid amounts to RM300.

iii. Bank loan interest of 10 per cent per annum is outstanding.

iv. Provision for doubtful debt for account receivables of 2 per cent is to be made.

v.  Depreciation is to be charged at 2 per cent of cost on the premises and 10 per cent of cost on the plant.

prepare Statement of Financial Position as at 31 December 2021

Answer 1

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