Doralin Sdn Bhd has been in business for several years but did not keep a complete set of books. Mrs Shuhadah, the owner has approached you to assist her in preparing the financial statements for the year ended 31 December 2019. The following is the trial balance extracted from the books of Doralin Sdn Bhd: Doralin Sdn Bhd Trial Balance as at 31s December 2019 Debit Account Credit (S) 660 (S) 800 Retun Inward and Outward Carriage outward Drawinge 2,500 4 400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Doralin Sdn Bhd has been in business for several years but did not keep a
complete set of books. Mrs Shuhadah, the owner has approached you to
assist her in preparing the financial statements for the year ended 31
December 2019. The following is the trial balance extracted from the books
of Doralin Sdn Bhd:
Doralin Sdn Bhd
Trial Balance as at 31s December 2019
Credit
(S)
800
Account
Debit
(S)
660
2,500
4,400
Return Inward and Outward
Carriage outward
Drawings
1,700
Allowance for doubtful debts
Bad debts
Insurance
2,300
2,200
1,500
2,400
1,000
Carriage inward
Commission received
Discount allowed
Discount received
Motor expenses
Household expenses
Salaries
Utilities
1,200
1,160
1,600
11,000
3,180
1,200
23,000
Interest on loan
Accounts receivable
Accounts payable
Bank
Loan from CIMB
Inventory (Ist January 2019)
Purchases
Sales
22,500
28,000
30,000
8,250
59,000
124,260
Machinery
Motor Vehicles
Accumulated depreciation:
Machinery
Motor Vehicles
Capital
Total
65,000
48,000
19,200
9,600
52,290
263,950
263,950
||
Transcribed Image Text:Doralin Sdn Bhd has been in business for several years but did not keep a complete set of books. Mrs Shuhadah, the owner has approached you to assist her in preparing the financial statements for the year ended 31 December 2019. The following is the trial balance extracted from the books of Doralin Sdn Bhd: Doralin Sdn Bhd Trial Balance as at 31s December 2019 Credit (S) 800 Account Debit (S) 660 2,500 4,400 Return Inward and Outward Carriage outward Drawings 1,700 Allowance for doubtful debts Bad debts Insurance 2,300 2,200 1,500 2,400 1,000 Carriage inward Commission received Discount allowed Discount received Motor expenses Household expenses Salaries Utilities 1,200 1,160 1,600 11,000 3,180 1,200 23,000 Interest on loan Accounts receivable Accounts payable Bank Loan from CIMB Inventory (Ist January 2019) Purchases Sales 22,500 28,000 30,000 8,250 59,000 124,260 Machinery Motor Vehicles Accumulated depreciation: Machinery Motor Vehicles Capital Total 65,000 48,000 19,200 9,600 52,290 263,950 263,950 ||
Through your investigation, you also discovered the following information:
a. Inventory as at 31st December 2019 was $11,200.
b. You discovered that there is one invoice of $400 which was overdue for more than a
year. Mrs. Shuhadah decided to write this off as he considered this as uncollectible.
c. Depreciation for the year is to be provided as below:
• Machinery $4,580
• Motor Vehicles $4,800
d. Household expenses represent expenses for the owner's personal life, which she didn't
know she supposed to be separate from business expenses.
e. Allowance for doubtful debt was to be adjusted to 10% of credit sales $25,000.
f. Insurance expenses were paid by the company for the period of April 2019 to March
2020.
g. The business has the following outstanding expenses at the end of the year:
• Carriage inwards $560
• Salaries $700
h. As an effort that you make to help Mr. Jason preparing the financial statement, you are
charging accounting fees to the company amounted $2,000. And this expense has not yet
been recorded until at the year end.
Required:
1) Prepare Income Statement for the year ended 31st December 2019.
2) Prepare Statement of Financial Position as at 31st December 2019.
||
Transcribed Image Text:Through your investigation, you also discovered the following information: a. Inventory as at 31st December 2019 was $11,200. b. You discovered that there is one invoice of $400 which was overdue for more than a year. Mrs. Shuhadah decided to write this off as he considered this as uncollectible. c. Depreciation for the year is to be provided as below: • Machinery $4,580 • Motor Vehicles $4,800 d. Household expenses represent expenses for the owner's personal life, which she didn't know she supposed to be separate from business expenses. e. Allowance for doubtful debt was to be adjusted to 10% of credit sales $25,000. f. Insurance expenses were paid by the company for the period of April 2019 to March 2020. g. The business has the following outstanding expenses at the end of the year: • Carriage inwards $560 • Salaries $700 h. As an effort that you make to help Mr. Jason preparing the financial statement, you are charging accounting fees to the company amounted $2,000. And this expense has not yet been recorded until at the year end. Required: 1) Prepare Income Statement for the year ended 31st December 2019. 2) Prepare Statement of Financial Position as at 31st December 2019. ||
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