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    Test 2 Jan2023 - Tapah Q2 FS SS

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    Najmuddin Azuddin
    The document provides the trial balance and additional information for Abigail Flowers Enterprise as of December 31, 2022. It includes balances for assets, liabilities, equity, revenues and expenses. It then requires preparing the statement of profit or loss and statement of financial position based on the information provided, making any necessary adjustments.

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    © All Rights Reserved
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    Test 2 Jan2023 - Tapah Q2 FS SS

    Uploaded by

    Najmuddin Azuddin
    349 views4 pages
    The document provides the trial balance and additional information for Abigail Flowers Enterprise as of December 31, 2022. It includes balances for assets, liabilities, equity, revenues and expenses. It then requires preparing the statement of profit or loss and statement of financial position based on the information provided, making any necessary adjustments.

    Original Title

    TEST 2 JAN2023_TAPAH Q2 FS SS (1)

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    The document provides the trial balance and additional information for Abigail Flowers Enterprise as of December 31, 2022. It includes balances for assets, liabilities, equity, revenues and expenses. It then requires preparing the statement of profit or loss and statement of financial position based on the information provided, making any necessary adjustments.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    349 views4 pages

    Test 2 Jan2023 - Tapah Q2 FS SS

    Uploaded by

    Najmuddin Azuddin
    The document provides the trial balance and additional information for Abigail Flowers Enterprise as of December 31, 2022. It includes balances for assets, liabilities, equity, revenues and expenses. It then requires preparing the statement of profit or loss and statement of financial position based on the information provided, making any necessary adjustments.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    1

    ACC117 TEST 2 JANUARY 2023 Q2 (TAPAH)


    FIN.STATEMENTS SOLUTION

    Question

    The following is a list of balances obtained from Abigail Flowers Enterprise as at 31 December
    2022.

    Abigail Flowers Enterprise


    Trial Balance as at 31 December 2022
    Debit (RM) Credit (RM)
    Purchases and Sales 101,540 375,750
    Returns 4,500 7,850
    Opening Stock as at 1st January 2022 87,000
    Rent expense 18,110
    Salaries 57,440
    Stationery 1,450
    General Expense 7,750
    Insurance 18,400
    Repair and Maintenance 14,000
    Interests 3,000 1,625
    Discounts 4,900 6,990
    Rent received 12,000
    Commission received 5,840
    Land and building 200,000
    Motor vehicles 150,000
    Furniture 80,000
    5% Fixed Deposit 65,000
    Accumulated depreciation – Motor vehicles 90,000
    Accumulated depreciation – Furniture 24,000
    Account receivables 50,500
    Account payables 61,670
    Cash at Bank 27,500
    Cash in Hand 15,660
    10% Loan from People Bank 50,000
    Allowance for doubtful debt as at 1st January 2022 2,500
    Drawings 7,640
    Capital 276,165
    914,390 914,390
    Pn.Azura Mohd.Noor
    UiTM Perlis
    2

    Additional information:

    1. Stock as at 31 December 2022 is RM38,000 [-COGS, CA]

    2. The loan from People Bank was obtained on 1 April 2022 (9/12), whereas the business
    startedto invest in 5% fixed deposit on 1 January 2022 (12/12)
    (i) Interest expense = 10% x 50,000 x 9/12 = 3,750
    AE: +E, CL = 750 (3,750 -3,000)
    (ii) Interest revenue = 5% x 65,000 = 3,250
    AR: +R, CA = 1,625 (3,250 – 1,625)

    3. Abigail took RM250 worth of flowers for her niece’s birthday party and RM150
    worth of cash to pay for her personal purchasing.

    (i) Drawings of goods: + Drawings, - Purchases = RM250


    (ii) Drawings of cash: + Drawings, - Cash = RM150

    4. There are accrued insurance expense of RM700 and prepaid rent expense of RM3,700
    at the end of December 2022

    (i) Accrued insurance expense of RM700 = AE: +E, CL


    (ii) Prepaid rent expense of RM3,700 = PE: -E, CA

    5. One of the account receivables worth RM700 was declared bankrupt. The business
    decides to provide 5% allowance for doubtful debt on the net account receivables.

    6. Annual depreciation is to be provided as follows:

    +E (Depreciation), -NCA (Acc.Depr.)

    a) Motor Vehicle 20% on cost, yearly basis


    = 20% x 150,000 = 30,000

    b) Furniture 10% on carrying amount, yearly basis


    = 10% x 56,000 (80,000 – 24,000) = 5,600

    Required:

    a. Prepare the Statement of Profit or Loss for the year ended 31 December 2022
    b. Prepare the Statement of Financial Position as at 31 December 2022
    (Total: 25 marks)

    Pn.Azura Mohd.Noor
    UiTM Perlis
    3

    SOLUTION

    Abigail Flowers Enterprise


    Statement of Profit or Loss for the year ended 31 December 2022
    RM RM RM
    Sales Revenues:
    Sales 375,750
    - Return Inwards (4,500)
    - Discount Allowed (4,900)
    Net Sales 366,350

    Cost of Goods Sold:


    Opening Inventory 87,000
    Purchases 101,290
    - Return Outwards (7,850)
    - Discount Received (6,990) 86,450
    173,450
    - Closing Inventory (38,000)
    COGS (135,450)
    Gross Profit 230,900

    Other Revenues:
    Interest Revenue (1,625 + 1,625) 3,250
    Rent Received 12,000
    Commission Received 5,840 21,090
    251,990
    Other Expenses:
    Rent Expense (18,110 – 3,700) 14,410
    Salaries 57,440
    Stationery 1,450
    General Expense 7,750
    Insurance (18,400 + 700) 19,100
    Repairs and maintenance 14,000
    Interest Expense (3,000 + 750) 3,750
    Depreciation - Motor Vehicles (150,000 X 20%) 30,000
    Depreciation - Furniture [(80,000 – 24,000) X 10%] 5,600
    Increase in AFDD 690 154,190
    (Bal.c/d + New BD – Bal.b/d = 2,490 + 700 - 2500)
    Net Profit 97,800

    Pn.Azura Mohd.Noor
    UiTM Perlis
    4

    Abigail Flowers Enterprise


    Statement of Financial Position 31 December 2022
    RM RM RM
    Non-Current Assets: Cost Accumulated Carrying
    Depreciation Value
    Land and Building 200,000 - 200,000
    Furniture 150,000 120,000 30,000
    (90,000 + 30,000)
    Motor Vehicles 80,000 29,600 50,400
    (24,000 + 5,600)
    280,400
    5% Fixed Deposit 65,000
    345,400
    Current Assets:
    Closing Inventory 38,000
    Accounts receivable (50,500 - 700) 49,800
    - AFDD (2,490) 47,310
    Cash at Bank 27,500
    Cash in Hand (15,660 – 150) 15,510
    Accrued Interest Revenue 1,625
    Prepaid Rent Expense 3,700 133,645
    479,045

    Financed by:
    Owner’s Equity:
    Opening Capital 276,165
    + Net Profit 97,800
    - Drawings (7,640 + 250 + 150) (8,040)
    Ending Capital 365,925

    Non-Current Liability:
    10% Loan from People Bank 50,000

    Current Liabilities:
    A/C Payable 61,670
    Accrued Interest Expense 750
    Accrued Insurance Expense 700 63,120
    479,045

    Pn.Azura Mohd.Noor
    UiTM Perlis

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