LECTURE 4 PART 1_ANSWER

QUESTION 1

(a)

Jakie Chong Trading

Statement of profit or loss
For the year ended 28 February 2019

RM RM
Revenues
Photograph fees 3,700
Camera rental 1,500 5,200

Less : Expenses
Salaries 1,200
Utilities 100
Rental 800
Insurance 1,100 3,200

Net Income 2,000

Teach students (business name, title and accounting period should be in 3 line)

1
(b)

Jakie Chong Trading

Statement of financial position
At 28 February 2019
RM RM

Current Assets
Cash 10,000
Account receivable 22,000
Total current assets 32,000

Property, plant and equipment

Equipment 10,000
Motor vehicle 25,000 35,000

Total Assets 67,000

Current liabilities
Account payable 5,000

Long term liabilities

Long-term loan 11,000

Owners’ equity
Capital 50,000
Add: Net income 2,000
Less: Drawing (1,000)
Total owners’ equity 51,000

Total Liabilities and owners’ equity 67,000

2
QUESTION 2

(a)

Nikki Trading
Statement of profit or loss
For the year ended 30 June 2019

RM RM RM
Revenues
Sales 820,000
Less Return inwards (11,500)
Net sales 808,500

Less: Cost of goods sold

Opening inventory 80,000
Purchase 400,500
Less : Return outwards (8,500)
Net purchase 392,000
Add: Custom & import duties 35,000
Cost of good purchased 427,000
Cost of good available for sales 507,000
Less: Closing inventory (93,000) 414,000

Gross profit 394,500

Add : other revenue

Discount received 4500
Commission received 77,000 81,500

Less: Expenses
Salaries 130,000
Water and electricity 12,000
Motor vehicles expense 28,000
Postage and stationary 1,100
Discount allowed 7800
Advertising 10,000
Insurance 2,000
Carriage outwards 14,200
Miscellaneous 1,800 (206,900)

Net income 269,100

3
2(b)

Nikki Trading
Statement of financial position
As at 30 June 2019

RM RM RM
Current Asset
Cash 30,000
Bank 199,100
Account receivable 243,000
Inventory 93,000
Total current assets 565,100

Property, plant and equipment

Premises 850,000
Office equipment 40,000
Less : Accumulated Depreciation (12000) 28,000
Motor vehicle 150,000
Less: Accumulated Depreciation (54,000) 96,000 974,000

Total Assets 1,539,100

Current liabilities
Account payable 185,000

Long term liabilities

Long-term loan 100,000

Owners’ equity
Capital 1,000,000
Add: Net income 269,100
Less: Drawing (15,000)
Total owners’ equity 1,254,100

Total liabilities and owners’ equity 1,539,100

4
QUESTION 3
(a)
CEMPAKA.Bhd /
Statement of profit or loss
For the year ended 31 December 2018 /

RM RM RM
Revenues
Sales 980,000/
Less : Return inwards (2,000)/
Net Sales 978,000/

Less : Cost of Goods Sold

Opening inventory 117,200/
Purchases 440,000/
Add: Carriage inwards 9,600/
Net purchases/cost of goods purchased 449,600

Cost of Goods available for sale 566,800

Less : Closing Inventory (50,000)/ 516,800

Gross Profit / 461,200

Add : Other Revenues

Commission received 5,000/

Less: Operating expenses

Carriage outwards 40,000/
Discount allowed 45,000/
Salaries expenses 150,000/
Rental 10,000/
Insurance expenses 36,000/
Interest expense 28,000/
General expenses 91,800/ 400800
Net profit / 65400

/ = 0.5mark

5
(b)
CEMPAKA. Bhd. /
Retained earnings statement /
For the year ended 31 December 2018 /

RM RM RM
Retained earnings, January 1 170,000/
Add :Net profit // 65400
235400
Less : Dividends (60,000)/
Retained earnings, December 31 / 175400

/= 0.5 mark

6
(c)
CEMPAKA.Bhd /
Statement of financial position
As at 31 December 2018 /

RM RM RM
Current Assets
Cash 36,000/
Account receivable 122,800/
Inventory 50,000/ 208800

Investments 110,000/

Property, plant and equipment

Land and building 900,000/
Motor vehicles 240,000/
Less: Accumulated depreciation (72000) 168,000
Furniture 60,000/ 1,116,600
Less: Accumulated depreciation (11400) 48,600 1,435,400
Total Assets

Current Liabilities
Account Payable 65,000/
Bank overdraft 45,000/ 110000

Long-term liabilities
Long-term loan 350,000/

Stockholder’s Equity
Common stock 800,000/
Add :Retained earnings // 175400 975400
Total liabilities and owner’s equity 1,435,400

/= 0.5 mark