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Question 1 The management of Farzana Enterprise has asked you to prepare their...

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Accounting

Question 1

The management of Farzana Enterprise has asked you to prepare their financial statements for the year ended 30 June 2022. The companys trial balance as at that date is as follows:

Trial Balance of Farzana Enterprise as at 30 June 2022

Debit Credit
(RM) (RM)
Purchases and sales 320,000 896,625
Discount allowed 45,000
Salaries expenses 151,000
Bad debts 7,500
Insurance 27,000
Interest expenses 7,875
Telephone and internet charges 3,750
Rental and maintenance 30,000
General expenses 41,850
Capital 500,000
Tools 82,500
Carriage outwards 30,000
Carriage inwards 8,500
Return inwards 1,500
Investments 175,000
Land 400,000
Building 180,000
Furniture and Fixtures 45,000
Accumulated depreciation Building 57,000
Accumulated depreciation Furniture and Fixtures 9,600
6% Loan from Ambank, 15 years 262,500
Bank overdraft 34,000
Cash 27,000
Account Receivables 92,100
Inventories, 1 July 87,900
Account Payables 48,750
Drawings 45,000
1,808,475 1,808,475

Additional Information:

  1. Inventory as at 30 June 2022 was RM55,000
  2. Included in the carriage outward is carriage inwards amounting to RM500.
  3. The owner had taken RM800 of goods for her personal use
  4. Depreciation is to be provided as follows:
    1. Furniture and Fixtures 10% on cost, yearly basis
    2. Building 15% on Net Book Value, yearly basis
  5. Additional bad debt of RM800 was to be written off.
  6. Allowance for doubtful debt is to be adjusted to 2% on the outstanding account receivables
  7. The company has not yet paid half of the interest on loan for the year end 2022.
  8. The expenses below were still unpaid on 30 June 2022:
    1. Telephone and internet RM400
    2. General expenses RM500
  9. The Insurance expense was paid for the period from 1 December 2021 to 30 November 2022

Note: Show all relevant workings and journal entries for adjustments.

Required:

A. Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2022

B. Statement of Financial Position as at 30 June 2022

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