Exercise(11)

The Trial Balance for Gold Company, on 31 December 2013 is shown as follows:

Gold Company
Trial Balance as at 31 December 2013

Debit Credit
RM RM
Inventory,1 Jan2013 7,980
Capital,1 Jan2013 53,357
Cash in hand 670
Cash at bank 2,080
Drawings 790
Purchases and Sales 12,890 17,890
Returns 290 340
Discount 300 354
Trade Receivables and Trade Payables 8,900 6,900
Carriage Outwards 245
Import Duty 345
Insurance on purchases 320
Rent 990
Advertising 300
General Expenses 540
Wages and Salaries 4,800
Motor Vehicle 18,000
Premises 25,000
Commission 230 239
Water and Electricity 550
82,150 82,150

**The closing stock was valued a market price RM12,900 ,cost pricr RM10,770.

From the information above,you are required to prepare:

(a)Income statement for the year ended 31 December 2013;
(b)Statement of Financial Position as at 31 December 2013.

Answer:
a. Net Profit RM1,793
b. RM63,340
Exercise(6)
Ah Kong had been trading for a few years and his books showed the following
balances as at 31 October Year3.

RM
Accounts Payabe 10,800
Purchases 51,500
General Expenses 1,160
Premises 40,400
Inventory,1.11.Year 2 6,700
Discount Received 400
Cash In Hand 80
Sales 88,100
Interest Expenses 1,110
Carriage Inwards 50
Maintenance of Premises 2,700
Discount Allowed 2,000
Inventory,31.10.Year 3 5,900
Furniture and Fixture 6,000
Accounts Receivable 12,000
Motor Vehicle 10,000
Advertising Expenses 1,530
Mortgage on premises 3,000
Insurance Expenses 1,460
Bad Debts 1,200
Drawings 1,500
Capital 37,090

You are required to prepare the Financial Statement for thr year ended 31 October Year3.

Answer:
SOPL:Net Profit RM24,990
SOFP: RM74,380
ctober Year3.