Mr.

Water who does not have accounting knowledge established a sole proprietor,
Kedai Put Water. Hence, the business transactions were not kept under double entry system.
However, the firm was able to provide the following information for the year ended
31 December 2017:

Receipts RM Payments RM
Account Receivable 8,000 Commission 700
Sales 5,000 Account Payables 4,200
Loan from Mr. Fire 5,000 Carriage Inwards 340
Rental 3,500 Rental 4,800
Telephone Charges 330

31 December 2016 31 December 2017

Inventory - 790
Office Equipment (cost: RM5,000) 4,000 4,500
Premises 50,000 50,000
Unearned Rental Income 500 -
Prepaid Telephone Charges 20 -
Accrued Telephone Charges - 25
Account Receivable - 1,030
Account Payable 310 640
Bank overdraft 200 ?
Allowance for Doubtful Debts 300 ?

Total cash sales was RM18,340. Part of the receipts from cash sales was used for following
payments before banked in:

Salaries: RM7,000 ; Drawings:RM340 ; Computer ; RM1,000 ; Purchases: RM5,000

RM800 discount was given to credit customers while RM560 discount was received from
suppliers. During the year, sales returns was RM400 while the purchases returns was
RM900. Bad debts written off during the year was RM450. Allowance of for doubtful debts
was to reduce to RM130.

Goods worth RM360 was withdrawn as a gift for his son within the accounting year.

You are required to prepare:

a) Accounts Receivable Control;
b) Accounts Payable Control;
c) Income Statement for the year ended 31 December 2017;
d) Statement of Financial Position as at 31 December 2017.

(2018 Final Examination)