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Question 5

The following trial balance was extracted from the ledger of Liana as at 31 December 2020.

Liana
Trial Balance as at 31 December 2020
	RM		RM
Land at cost	31,000
Plant at cost	83,000
Accumulated Depreciation at 1 January 2020- Plant			13,000
Office Equipment	33,000
Accumulated Depreciation at 1 January 2020 Office Equipment			8,000
Receivables	193,000
Payables			52,000
Sales			793,000
Purchases	516,000
Returns inwards	47,000
Discount allowed	4,000

Capital at 1 January 2020			200,000
Drawings	10,000
Provision for doubtful debts at 1 January 2020			23,000
Salaries Expense	48,000
Administration costs	38,000
Bank			75,000
Bad debts written off	77,000
Inventory at 1 January 2020	84,000
	1,164,000		1,164,000

Additional information:

• Closing inventory is RM74,000.
• Depreciation on plant is charged at 10% per annum on cost. Depreciation on office equipment is charged at 20% per annum using the reducing balance method.
• Administration costs include insurance prepaid of RM8,000.
• Salary accrued amount to RM4,000.
• The allowance for receivables is to remain at RM23,000.

Required:

1. Prepare Statement of Comprehensive Income for the year ended 31December 2020.

2. Prepare Statement of Financial Position as at 31 December 2020.

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