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Exercises On Financial Statement
Exercises On Financial Statement
Exercises On Financial Statement
Puan Nabila is the owner of Teguh Trading. She has asked you to prepare the financial
statements for 2013 based on the following trial balance as at 31 December 2013.
Additional Information:
6. The business has not received any interest on fixed deposit yet.
7. RM4,000 salaries expenses was paid in advance.
8. Puan Nabila had withdrawn RM600 by cheque to purchase some old furniture for her
personal use.
9. An additional amount of cash for RM10,000 was brought into the business to be put in
as capital. No record was made of it.
10. General expenses amounting to RM500 has been wrongly recorded. It should be
transferred to water and electricity.
Required:
a. The Statement of Profit or Loss for the year ended 31 December 2013.
(16 marks)
Question 2
The trial balance below showed the accounts’ balances of Liza Enterprise which is wholly
owned by Puan Liza as at 31 December 2014.
Additional information:
2. Rent received is for the period from 1 January 2014 to March 2015.
3. RM300 electricity was paid in advance, while rental expenses RM750 was owing at
the end of the year.
4. Puan Liza had withdrawn RM1,500 cheque and RM3,500 goods for her family use.
7. Insurance amounting RM300 was still outstanding at the end of the accounting
period.
8. The loan from Bank Simpanan Malaya was obtained on 1 May 2014. Interest on loan
of 5% per annum was still outstanding at the end of the year.
- Machinery RM600
- Motor vehicles RM9,900
Required:
a. Prepare a statement of profit or loss for the year ended 31 December 2014.
(16 marks)
Question 3
Puan Mona Liza is the owner of Mona Enterprise. The financial year end of the business is
on 31 December annually. Below is the trial balance extracted from the books of Mona
Enterprise as at 31 December 2015.
Debit Credit
(RM) (RM)
Purchases and sales 52,000 109,200
Inventory as at 1 January 2015 6,500
Drawing 7,800
Capital as at 1 January 2015 61,360
Cash in hand 3,900
Bank overdraft 5,200
Discount allowed and discount received 1,040 1,560
Returns inwards and returns outwards 3,900 3,120
Carriage inwards 2,080
Carriage outwards 4,160
Rent 15,600
Wages and salaries 23,400
Insurance 1,820
General expenses 520
Electricity and telephone expenses 1,300
Furniture and Fittings at cost 44,200
Office Equipment at cost 39,000
Accumulated Depreciation – Furniture and Fittings 1,820
Accumulated Depreciation – Office Equipment 2,600
Accounts receivables and accounts payables 16,640 8,320
Allowance for Doubtful Debts as at 1 January 2015 2,080
Bank Loan 26,000
Interest Expense 1,300
Commission revenues 3,900+1040
225,160 225,160
Additional information:
2. Puan Mona Liza took RM500 cash for her daughter’s wedding ceremony.
3. Commission revenue was accrued amounting RM1,040 at the end of the year.
7. Bad debts of RM840 are to be written off and the allowance for doubtful debts is to
be adjusted at 10% of net accounts receivables.
Required:
a. The statement of profit or loss for the year ended 31 December 2015.
(18 marks)
b. The statement of financial position as at 31 December 2015.
(12 marks)
(Total: 30 marks)
Question 4
MATAF Trading
Trial Balance as at 31 December 2016
Additional information:
2. Accrued electricity and water was RM800 and insurance prepaid was RM1,500 as at
31 December 2016.
6. Half yearly interest on fixed deposit has not been received until 31 January 2017.
Office equipment - 20% per annum using the straight line method
Motor vehicles - 10% per annum using the reducing balance method
8. Loan from CHIM Bank was taken on 1 January 2016 and the interest on the loan has
not yet been paid.
Required:
a. The Profit or Loss Statement for the year ended 31 December 2016; and
(18 marks)
Note 1: Use vertical format presentation for both statements and show all calculations.
Question 5
Sarahani is the owner of SH Trading, the business dealing with wholesaler of electrical
appliances. Below is the trial balance extracted from the books of SH Trading as at 31
December 2013.
Additional information:
1. One of the accounts receivable returned defective good amounting RM110 to the
business. This transaction was not recorded in the books yet.
2. Allowance for doubtful debts of 5% was to be provided on the net accounts receivable.
4. Prepayment of insurance premium and wages were RM150 and RM300 respectively.
6. The owner took goods amounting RM400 for her personal use.
7. The accruals of electricity and salaries were RM100 and RM200 respectively.
8. A long term loan from Bank Niaga amounted to RM50,000 was received by cheque on
1 June 2013. The 4% interest on loan is still accrued at the end of the year.
Required:
c. The Statement of Profit or Loss for the year ended 31 December 2013.
(15 marks)
Question 6
The trial balance below was extracted from the books of Riang Ria Trading as at 31
December 2014.
Additional information:
Accruals Prepayments
Printing and stationery RM500 Repairs and maintenance RM700
Electricity and water RM400 Salaries and wages RM1,200
6. The carriage expenses comprise of 60% carriage outwards and 40% carriage inwards.
7. The owner took RM600 cash from the business to buy his clothes.
Required:
PAK RAMLI Trading supplies frozen foods to customers around Kuala Selangor. The
following trial balance was extracted from the books of PAK RAMLI Trading as at 31
December 2015.
Debit (RM) Credit (RM)
Inventory as at 1 January 2015 45,800
Capital as at 1 January 2015 568,900
Cash at bank 112,400
Cash in hand 12,500
Accounts receivables and accounts payables 84,800 72,500
Water and electricity 30,500
Return outwards 2,480
Return inwards 4,200
Duty on purchases 2,200
Transportation inwards 3,420
Purchases and sales 541,300 775,400
Rentals 28,100 35,500
Furniture and fittings 118,500
Office equipment 125,000
Motor vehicles 560,000
Accumulated depreciation as at 1 January 2015:
Furniture and fittings 19,700
Office equipment 25,000
Motor vehicles 20,000
Allowance for doubtful debt 4,940
Stationeries 13,700
Salaries 122,680
Motor vehicles expenses 114,580
Transportation outwards 3,540
Drawings 2,500
Commissions 15,500 16,800
15% Fixed deposit 120,000
5% SMM bank loan 520,000
2,061,220 2,061,220
Additional information:
ii. A credit purchases from Ayam Gold Frozen worth RM3,550 was not yet recorded
anywhere in the books.
iii. Part of the motor vehicle expenses, RM10,200, was for owner’s private car.
vi. It is the policy of the business to provide 5% allowance for doubtful debt on the
outstanding accounts receivables.
vii. Fixed deposit was invested on 1 April 2015. The interest received for the year 2015
was not yet recorded in the books of account.
viii. A bill for water and electricity amounted to RM1,250 was not yet paid.
ix. Loan from SMM bank was approved on 1 August 2015 and the interest on loan has
yet to be paid as at year end.
Required:
e. The Statement of Profit or Loss for the year ended 31 December 2015.
(18 marks)