Mr. Ahmad Ali, who runs a retail business, Teguh Harian Ltd, had the following balances extracted from the books of the business on 30 June 2020:   Account Name  RM  RM Account Receivable and Account Payable  165,520  72,440 Carriage inwards  3,520   Inventory as at 1 July 2019  65,980   Carriage outwards  4,360   Discount allowed and discount received  2,680  60 Utilities  25,100   Loan from Miko bank    80,000 Returns inwards and return outwards  3,840  3,580 Bank  10,400   Premises  160,000   Motor Vehicles  56,000   Furniture and fittings  27,600   Cash  2,160   Accumulated depreciation as at 1 July 2019     ∙ Motor vehicles    20,160 ∙ Furniture and fittings    8,280 Salaries and wages  68,600   Bad debts  2,940   Rent received    7,500 Printing and stationery  9,400   Drawings  3,560   Insurance expenses  18,200   Purchases and Sales  592,380  844,300 Allowance for doubtful debts    5,920 Capital as at 1 July 2019    180,000   1,222,240  1,222,240   Additional information as at 30 June 2020: (i) Provision for depreciation are to be provided based on the following.  Motor vehicles 20% on book value, yearly basis  Furniture and fittings 10% on cost, yearly basis (ii) A portion of the business premises was rented out for RM1,500 month starting from 1 March 2020. (iii) A debtor, Tan was declare a bankrupt in January 2020. The amount owed by him amounting to RM2,720 has not been adjusted yet. (iv) A debtor Azam, paid RM740 in cash for his debt which has been written off two years ago. (v) It is the policy of the firm to provide 5% provision of doubtful debts on the outstanding account receivable. (vi) Miko bank approved the loan in January 2020 and charged interest at the rate of 8% per annum thereon. (vii) The amount of insurance premium paid is for a coverage period of 13 month starting from February 2020. (viii) The expenses below are still outstanding as at year end.  Salaries and wages RM4,690  Utilities RM710 (ix) The owner had consumed some goods worth RM12,680 and withdrew RM1,000 cash for personal use. (x) Inventory as at 30 June 2020 was RM69,900. b) Prepare the Statement of Financial Position on as at 30 June 2020.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mr. Ahmad Ali, who runs a retail business, Teguh Harian Ltd, had the following balances
extracted from the books of the business on 30 June 2020:

 

Account Name 

RM 

RM

Account Receivable and Account Payable 

165,520 

72,440

Carriage inwards 

3,520

 

Inventory as at 1 July 2019 

65,980

 

Carriage outwards 

4,360

 

Discount allowed and discount received 

2,680 

60

Utilities 

25,100

 

Loan from Miko bank 

 

80,000

Returns inwards and return outwards 

3,840 

3,580

Bank 

10,400

 

Premises 

160,000

 

Motor Vehicles 

56,000

 

Furniture and fittings 

27,600

 

Cash 

2,160

 

Accumulated depreciation as at 1 July 2019

   

∙ Motor vehicles 

 

20,160

∙ Furniture and fittings 

 

8,280

Salaries and wages 

68,600

 

Bad debts 

2,940

 

Rent received 

 

7,500

Printing and stationery 

9,400

 

Drawings 

3,560

 

Insurance expenses 

18,200

 

Purchases and Sales 

592,380 

844,300

Allowance for doubtful debts 

 

5,920

Capital as at 1 July 2019 

 

180,000

 

1,222,240 

1,222,240



 

Additional information as at 30 June 2020:

(i) Provision for depreciation are to be provided based on the following.
 Motor vehicles 20% on book value, yearly basis
 Furniture and fittings 10% on cost, yearly basis

(ii) A portion of the business premises was rented out for RM1,500 month starting from 1 March 2020.

(iii) A debtor, Tan was declare a bankrupt in January 2020. The amount owed by him amounting to RM2,720 has not been adjusted yet.

(iv) A debtor Azam, paid RM740 in cash for his debt which has been written off two years ago.

(v) It is the policy of the firm to provide 5% provision of doubtful debts on the outstanding
account receivable.

(vi) Miko bank approved the loan in January 2020 and charged interest at the rate of 8% per
annum thereon.


(vii) The amount of insurance premium paid is for a coverage period of 13 month starting
from February 2020.


(viii) The expenses below are still outstanding as at year end.
 Salaries and wages RM4,690
 Utilities RM710

(ix) The owner had consumed some goods worth RM12,680 and withdrew RM1,000 cash
for personal use.

(x) Inventory as at 30 June 2020 was RM69,900.


b) Prepare the Statement of Financial Position on as at 30 June 2020.

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