How Do I Tell This Guy About My...
Family & Relationships2 mins ago
Please Help Me Answer The Question...
6 Answers
Anyone can help me solve this account question? Thank you very much!
The following trial balance was extracted from the books of Roscommon Sdn Bhd at 31 December 2008:
Ordinary shares RM0.25 each
600,000
Share premium
130,000
Retained profit at 01/01/08
354,700
Returns
2,750
3,800
Purchases
500,000
Discounts
6,250
4,500
Land
1,200,000
Buildings
500,000
Motor vehicles
250,000
Office equipment
25,000
Buildings accumulated depreciation 2007
110,000
Motor vehicles accumulated depreciation 2007
109,375
Office equipment accumulated depreciation 2007
7,500
Carriage inwards
15,000
Carriage outwards
22,500
Inventory 01/01/08
60,250
Revenue
1,200,750
Advertising
18,000
Bad debts
25,500
Motor expenses
23,000
Rent & rates
180,000
Bank
50,000
Wages & salary
200,500
10% debenture 2015
300,000
Interim dividend
56,000
Debenture interest
20,000
8% preference shares
100,000
Provision for bad debts
4,875
Trade receivables/ trade payable
98,000
81,000
General reserve
150,000
Preference dividend paid
4,000
The following additional information is also provided:
(a) Closing inventory at 31 December 2008 was valued at RM75,250. This includes the following:
(i) Goods which originally had cost RM4,200 but due to smoke damage will now have a sales value of RM2,000. When selling these goods the company will incur selling cost of RM250.
(ii) Goods valued at RM1,250 which the company received free of charge as part of the promotion of a new product.
(iii) A piece of equipment valued at RM7,500 which Roscommon Ltd purchased in June 2008. Roscommon Ltd uses this equipment in their office. The cost of this equipment is included in the purchase figure in the trial balance.
(b) One of Roscommon Ltd’s customers who owed RM5,500, was declared bankrupt. This is to be written off.
(c) The provision for bad debt should be 3% of trade receivables.
(d) Closing inventory at 31 December 2007 was overstated by RM5,000. This has not been corrected in the accounts.
(e) Rent prepaid during the period was RM20,000 and the rates outstanding at the end of the year were RM5,000.
(f) On 1 January 2009, the directors of Roscommon Ltd declared a final dividend of RM0.05 a share. The dividend figure included in the trial balance was the interim dividend which was declared and paid during 2008.
(g) The revenue figure includes an amount of RM12,000 being the selling price of goods sent on approval to a customer. At 31 December, the customer had not agreed to buy these goods. The mark-up on these goods was 20%.
(h) Depreciation is to be charged as follows:
Building – 2% on cost
Motor vehicles – 20% reducing balance
Office equipment – 10% on cost
(i) Provide for the debenture interest and preference dividend outstanding.
Required:
Prepare an Income Statement for the year ended 31 December 2008 and a Balance Sheet as at that date.
The following trial balance was extracted from the books of Roscommon Sdn Bhd at 31 December 2008:
Ordinary shares RM0.25 each
600,000
Share premium
130,000
Retained profit at 01/01/08
354,700
Returns
2,750
3,800
Purchases
500,000
Discounts
6,250
4,500
Land
1,200,000
Buildings
500,000
Motor vehicles
250,000
Office equipment
25,000
Buildings accumulated depreciation 2007
110,000
Motor vehicles accumulated depreciation 2007
109,375
Office equipment accumulated depreciation 2007
7,500
Carriage inwards
15,000
Carriage outwards
22,500
Inventory 01/01/08
60,250
Revenue
1,200,750
Advertising
18,000
Bad debts
25,500
Motor expenses
23,000
Rent & rates
180,000
Bank
50,000
Wages & salary
200,500
10% debenture 2015
300,000
Interim dividend
56,000
Debenture interest
20,000
8% preference shares
100,000
Provision for bad debts
4,875
Trade receivables/ trade payable
98,000
81,000
General reserve
150,000
Preference dividend paid
4,000
The following additional information is also provided:
(a) Closing inventory at 31 December 2008 was valued at RM75,250. This includes the following:
(i) Goods which originally had cost RM4,200 but due to smoke damage will now have a sales value of RM2,000. When selling these goods the company will incur selling cost of RM250.
(ii) Goods valued at RM1,250 which the company received free of charge as part of the promotion of a new product.
(iii) A piece of equipment valued at RM7,500 which Roscommon Ltd purchased in June 2008. Roscommon Ltd uses this equipment in their office. The cost of this equipment is included in the purchase figure in the trial balance.
(b) One of Roscommon Ltd’s customers who owed RM5,500, was declared bankrupt. This is to be written off.
(c) The provision for bad debt should be 3% of trade receivables.
(d) Closing inventory at 31 December 2007 was overstated by RM5,000. This has not been corrected in the accounts.
(e) Rent prepaid during the period was RM20,000 and the rates outstanding at the end of the year were RM5,000.
(f) On 1 January 2009, the directors of Roscommon Ltd declared a final dividend of RM0.05 a share. The dividend figure included in the trial balance was the interim dividend which was declared and paid during 2008.
(g) The revenue figure includes an amount of RM12,000 being the selling price of goods sent on approval to a customer. At 31 December, the customer had not agreed to buy these goods. The mark-up on these goods was 20%.
(h) Depreciation is to be charged as follows:
Building – 2% on cost
Motor vehicles – 20% reducing balance
Office equipment – 10% on cost
(i) Provide for the debenture interest and preference dividend outstanding.
Required:
Prepare an Income Statement for the year ended 31 December 2008 and a Balance Sheet as at that date.
Answers
1 to 6 of 6
Best Answer
No best answer has yet been selected by kiwimin. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.1 to 6 of 6
