Reference no: EM132988327
Question - The following trial balance has been extracted from the ledger of Nora Ariyana , a sole trader as at 31 May 2019, the end of her most recent financial year.
Debit (RM) Credit (RM)
Property at cost 90,000
Equipment at cost 57,500
Provision for depreciation (as at 1 June 2018) - Property 12,500
- Equipment 32,500
Inventories as at 1 June 2018 27,400
Purchases 259,600
Sales revenue 405,000
Discount allowed 3,370
Discount received 4,420
Salaries 52,360
Bad debts 1,720
Loan interest 1,560
Carriage outwards 5,310
Other operating expenses 38,800
Trade receivables 46,200
Trade payables 33,600
Provision for bad debts 280
Cash on hand 151
Bank overdraft 14,500
Drawings 28,930
13% loan 12,000
Capital 98,101
612,901 612,901
The following additional information as at 31 May 2019 is available:
i) Inventories as at the close of business were valued at RM25,900.
ii) Depreciation for the year ended 31 May 2019 has yet to be provided as follows:
Property: 1 percent using the straight-line method
Equipment: 15 per cent using the straight line method.
iii) Salaries are accrued by RM140.
iv) 'Other operating expenses' include certain expenses prepaid by RM500. Other expenses included under this heading are accrued by RM200.
v) The provision for bad debts is to be adjusted so that it is 0.5 percent of trade receivables as at 31 May 2019.
vi) 'Purchases' include good valued at RM1,040 that were withdrawn by Nora Ariyana for her own personal use.
Required -
a) Prepare statement of profit and loss for the year ended 31 May 2019.
b) Prepare statement of financial position as at 31 May 2019.