Question 1 Yellow Trading sells various brands of lamps and lights. The following is the trial balance of the company as at 31 December 2021: Credit (RM) Wages and salaries Return inwards/ return outwards Debit (RM) 22,400 13,400 15,400 13,200 1,081,800 Rent received 841,800 326,800 Purchases/Sales Motor vehicles (at cost) Bank loan (repayable on 2028) Inventory (as at 1 January 2021) Insurance 55,600 20,700 6,000 Equipment (at cost) Drawings Debtors /Creditors 45,000 2,000 120,000 150,000 Cash 10,900 Carriage inwards Capital (as at January 2021) 2,500 178,000 Bank 90,000 9,180 Bad debts expenses Allowance for doubtful debts (as at 1 January 2021) Administration expenses 3,500 24,000 Accumulated depreciation for motor vehicles Accumulated depreciation for equipment 32,680 4,500 1,534,680 1,534,680 Additional information as at 31 December 2021: • Inventory as at 31 December 2021 was valued at RM 15,000. • Drawings of cash done by the owner amounting to RM 500 during the accounting year. These transactions had not been updated in the accounting books of the business. • Depreciation for all non-current assets that the business held are to be calculated based on reducing balance method at a rate of 10% per annum. • Allowance for doubtful debts are to be provided at the rate of 5% per annum on net debtors' amount. Required to prepare: (a) Income statement for the year ended 31 December 2021. (b) Balance sheet as at 31 December 2021.
Question 1 Yellow Trading sells various brands of lamps and lights. The following is the trial balance of the company as at 31 December 2021: Credit (RM) Wages and salaries Return inwards/ return outwards Debit (RM) 22,400 13,400 15,400 13,200 1,081,800 Rent received 841,800 326,800 Purchases/Sales Motor vehicles (at cost) Bank loan (repayable on 2028) Inventory (as at 1 January 2021) Insurance 55,600 20,700 6,000 Equipment (at cost) Drawings Debtors /Creditors 45,000 2,000 120,000 150,000 Cash 10,900 Carriage inwards Capital (as at January 2021) 2,500 178,000 Bank 90,000 9,180 Bad debts expenses Allowance for doubtful debts (as at 1 January 2021) Administration expenses 3,500 24,000 Accumulated depreciation for motor vehicles Accumulated depreciation for equipment 32,680 4,500 1,534,680 1,534,680 Additional information as at 31 December 2021: • Inventory as at 31 December 2021 was valued at RM 15,000. • Drawings of cash done by the owner amounting to RM 500 during the accounting year. These transactions had not been updated in the accounting books of the business. • Depreciation for all non-current assets that the business held are to be calculated based on reducing balance method at a rate of 10% per annum. • Allowance for doubtful debts are to be provided at the rate of 5% per annum on net debtors' amount. Required to prepare: (a) Income statement for the year ended 31 December 2021. (b) Balance sheet as at 31 December 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Do b)
Transcribed Image Text:Question 1
Yellow Trading sells various brands of lamps and lights. The following is the trial balance of the
company as at 31 December 2021:
Debit (RM)
Credit (RM)
Wages and salaries
22,400
Return inwards/ return outwards
13,400
15,400
13,200
1,081,800
Rent received
841,800
326,800
Purchases/Sales
Motor vehicles (at cost)
Bank loan (repayable on 2028)
Inventory (as at 1 January 2021)
55,600
20,700
Insurance
6,000
Equipment (at cost)
Drawings
Debtors /Creditors
45,000
2,000
120,000
150,000
10,900
2,500
Cash
Carriage inwards
Capital (as at January 2021)
Bank
178,000
90,000
9,180
Bad debts expenses
Allowance for doubtful debts (as at 1 January 2021)
Administration expenses
Accumulated depreciation for motor vehicles
Accumulated depreciation for equipment
3,500
24,000
32,680
4,500
1,534,680
1,534,680
Additional information as at 31 December 2021:
• Inventory as at 31 December 2021 was valued at RM 15,000.
• Drawings of cash done by the owner amounting to RM 500 during the accounting year. These
transactions had not been updated in the accounting books of the business.
• Depreciation for all non-current assets that the business held are to be calculated based on
reducing balance method at a rate of 10% per annum.
• Allowance for doubtful debts are to be provided at the rate of 5% per annum on net debtors'
amount.
Required to prepare:
(a)
Income statement for the year ended 31 December 2021.
(b)
Balance sheet as at 31 December 2021.
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