financialaccount-week89_Final_Acc_for_Sole_Trader-Lecturer_n_Student.docVIP

From the following balances and adjustments, prepare the Trading and Profit and Loss Accounts for the year ended 31 December 2005, and a Statement of Financial Position as at that date. RM Capital, 1 January 2005 10,000 Drawings 3,000 Stock, 1 January 2005 670 Sales 13,785 Purchases 4,976 Wages 800 Rent 600 Insurance 135 Lorry 10,000 Lorry expenses 900 Bank 600 Commission revenue 410 Furniture and fittings 2,000 Discount allowed 514 (i) The closing stock was valued at RM895. (ii) Wages owing on 31 December 2005 were RM165. (iii) Prepaid insurance was RM35. (iv) Allow depreciation on the lorry at the rate of 10% per annum. K. Lai is an import merchant. On 30 June 2005, his ledger showed the following: RM Capital, 1 January 2005 14,000 Drawings 4,000 Stock, 1 January 2005 5,100 Purchases 21,650 Sales 38,065 Duty on imported goods 2,555 Freight and insurance on imported goods 1,460 Wages 2,700 Advertising 575 Debtors 1,600 Creditors 3,945 Discount allowed 600 Rent 1,000 Sundry expenses 1,770 Motor vehicles 12,000 Cash at bank 1,000 Prepare the Trading and Profit and Loss Accounts and the Statement of Financial Position after taking into account the following information: (i) The closing stock was valued at RM6,400 (ii) Allow depreciation on motor vehicles at the rate of 20% per annum. (iii) Create a Provision for Doubtful Debts of RM100. (iv) RM150 on sundry expenses was prepaid. The following trial balance was extracted from the books of Giggs Wong at the close of business on 28 Feburary 2006. Dr. (RM) Cr. (RM) Purchases and sales 92,800 157,165 Cash at bank 4,100 Cash in hand 1,084 Capital account, 1 March 2005 11,400 Drawings 17,100 Office furniture 2,900 Provision for Depreciation - Office furniture 760 Re