The following balances were extracted from the books of Billion Precision for the year ended 31 December 2020. Dr (RM) Cr (RM) Land 500000 Building 200000 Motor vehicles 120000 Plant and machinery 70000 Profit b/f as at 01.01.2020 237650 Capital 438000 Acc depreciation as at 1.1.2020 : Dr (RM) Cr (RM) Building 60 000 Motor vehicles 69250 Plant and machinery 40000 Returns 3600 4100 Revenue 800000 Purchases 400000 Discounts 5000 Carriage Inwards 7700 Opening Inventory 52000 Provision for bad debts 2000 Trade receivables / Trade payable 66000 43200 Advertising 18000 Staff training course 4000 Bad Debts 12500 Motor Expenses 27000 Rental 90000 Bank 7600 Wages & Salaries 126000 1701800 1701800 Additional information: i. The provision for bad debts should be 4% of trade receivables. ii. Depreciation is to be charged as follows: -Buildings 2% on cost. -Plant and machinery 20% on cost. -Vehicles 25% on cost. iii. The closing inventories is valued at RM57,000. Required: a. Prepare the Statement of Comprehensive Income for the year ended 31 December 2020. b. Prepare the Statement of Financial Position for the year ended 31 December 2020.
The following balances were extracted from the books of Billion Precision for the year ended 31 December 2020. Dr (RM) Cr (RM) Land 500000 Building 200000 Motor vehicles 120000 Plant and machinery 70000 Profit b/f as at 01.01.2020 237650 Capital 438000 Acc depreciation as at 1.1.2020 : Dr (RM) Cr (RM) Building 60 000 Motor vehicles 69250 Plant and machinery 40000 Returns 3600 4100 Revenue 800000 Purchases 400000 Discounts 5000 Carriage Inwards 7700 Opening Inventory 52000 Provision for bad debts 2000 Trade receivables / Trade payable 66000 43200 Advertising 18000 Staff training course 4000 Bad Debts 12500 Motor Expenses 27000 Rental 90000 Bank 7600 Wages & Salaries 126000 1701800 1701800 Additional information: i. The provision for bad debts should be 4% of trade receivables. ii. Depreciation is to be charged as follows: -Buildings 2% on cost. -Plant and machinery 20% on cost. -Vehicles 25% on cost. iii. The closing inventories is valued at RM57,000. Required: a. Prepare the Statement of Comprehensive Income for the year ended 31 December 2020. b. Prepare the Statement of Financial Position for the year ended 31 December 2020.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...
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The following balances were extracted from the books of Billion Precision for the year ended 31 December 2020.
Dr (RM) | Cr (RM) | |
Land | 500000 | |
Building | 200000 | |
Motor vehicles | 120000 | |
Plant and machinery | 70000 | |
Profit b/f as at 01.01.2020 | 237650 | |
Capital | 438000 |
Acc depreciation as at 1.1.2020 :
Dr (RM) | Cr (RM) | |
Building | 60 000 | |
Motor vehicles | 69250 | |
Plant and machinery | 40000 | |
Returns | 3600 | 4100 |
Revenue | 800000 | |
Purchases | 400000 | |
Discounts | 5000 | |
Carriage Inwards | 7700 | |
Opening Inventory | 52000 | |
Provision for |
2000 | |
Trade receivables / Trade payable | 66000 | 43200 |
Advertising | 18000 | |
Staff training course | 4000 | |
Bad Debts | 12500 | |
Motor Expenses | 27000 | |
Rental | 90000 | |
Bank | 7600 | |
Wages & Salaries | 126000 | |
1701800 | 1701800 |
Additional information:
i. The provision for bad debts should be 4% of trade receivables.
ii. Depreciation is to be charged as follows:
-Buildings 2% on cost.
-Plant and machinery 20% on cost.
-Vehicles 25% on cost.
iii. The closing inventories is valued at RM57,000.
Required:
a. Prepare the Statement of Comprehensive Income for the year ended 31 December
2020.
b. Prepare the
2020.
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