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QUESTION 1 (40 marks) (45 minutes) Star Berhad is doing furniture business with headonarters in Kuala I ummir The following Page 1 of 5

QUESTION 1 (40 marks) (45 minutes) Star Berhad is doing furniture business with headguarters in Kuala Lumnur. The following The following information are to be taken into account: 1. Depreciation is to be provided as follows: Motor vehicles 10% Straight line method Showroom Equipment 15% Reducing balance method No depreciation to be provided on Office Land and Premises. 2. 40% of carriage relates to carriage inwards and the remainder relates to carriage outwards. 3. A physical count of inventory at 30 September 2021 shows a closing stock of RM28,500. 4. Insurance costs in the Trial Balance includes RM8,400 relating to the year ended 31 December 2021. 5. Intemet charges outstanding RM350 per month for August and September 2021. 6. The Company experiences some bad debts every year. So, the allowance for doubtful debts is to be adjusted to 2% of accounts receivable. 7. Accounts Clerk is newly appointed. Hence, while reviewing the purchase account, it was noticed that RM1,200 for fumiture repairs had been debited to it in error. 8. The balance of interest on loan has not been paid for the year and interest on fixed deposit has not been received for the year. 9. The bank had advised the company that 8% of interest is yet to be charged on the bank overdraft. Required: a) Prepare the statement of Comprehensive Income for the year ended 30 September 2021. (18 marks) b) Prepare the Retained Earnings Statement for the year ended 30 September 2021. (4 marks) c) Prepare the Statement of Financial Position as at 30 September 2021. (18 marks)

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