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Additional information:

1. Closing inventory at 31 December 2021 was valued at RM98,000.

2. Salaries paid in advance to three employees for RM4,500 each has been recognised as an

expense on 31 December 2021.

3. Supplies that was purchased in 2021 has been wrongly recognised as supplies expense. At

31 December 2021, it was found that the balance of supplies was RM13,350. CONFIDENTIAL 202204/SEM103/A

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4. A utility bill for RM1,050 has not been recorded and will not be paid until January 2022.

5. Import duty of the goods purchased from Australia amounting to RM7,950 has been paid

in 2021, however the bookkeeper has not recorded it yet in the relevant accounts.

6. The company purchase fire insurance for the building amounting to RM72,000 on 1 April

2021. The insurance is valid for one year.

7. Depreciation is to be charged as follows:

Motor Vehicles

20% on straight line method.

Machinery

10% on reducing balance method.

Building

5% on straight line method

8. Allowance for doubtful accounts amounting to 2% of account receivable has to be

provided.

9. The balance of the interest on loan has not been paid for the year.

Required:

a) Prepare the statement of profit or loss for the year ended 31 December 2021. [16 marks]

b) Prepare the retained earnings statement for the year ended 31 December 2021. [4 marks]

c) Prepare the statement of financial position as at 31 December 2021.

Mountain Rarhad ic a madium cizad tradino romnanur onaratac a hucinace in Klang Valley. t is as follows

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