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Question 5 Puan Shakirah owns a retailing business, known as SHK Enterprise

Accounting

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Question 5

Puan Shakirah owns a retailing business, known as SHK Enterprise. The following Trial Balance was extracted from the books of SHK Enterprise as at 31 March 2017:

                                                  

 

 

 

 

Additional information:

 

(i)       Inventory as at 31 March 2017 was RM9,500.

 

(ii)       The owner has brought in a motor vehicle of RM45,000 on 1 April 2016 as an additional capital but this has not been recorded in the books.

 

(iii)      The loan from BMB Bank was taken on 1 August 2016 and the interest charged is 5% per annum. The interest paid on loan was for 3 months only.

 

(iv)      The advertising expenses included RM600 for petrol. One third of it is considered to be private purpose.

 

(v)      The owner took out cash worth RM1,000 for her son’s medical treatment and goods worth RM400 for her daughter’s birthday party.

 

(vi)      Insurance of RM600 and salaries of RM1,500 were still outstanding.

 

(vii)     A debtor with an outstanding amount of RM400 has been declared bankrupt by court. The provision for doubtful debts and provision for discount allowable is to be adjusted to 5% and 2% respectively.

 

(viii)    During the year, Puan Shakirah has renovated the premises. The renovation cost of premises RM10,500 has been wrongly entered in wages account.

 

(x)      Depreciation on yearly basis is to be provided as follows:

 

Premise	10% on cost
Motor vehicle	10% on cost
Office equipment	5% on book value

          Required to prepare:

 

(a)      A Statement of Comprehensive Income for the year ended 31 March 2017 (show all workings).

                                                                                                               (10 marks)

 

(b)      A Statement of Financial Position as at 31 March 2017 (show all workings).

                                                                                                               (10 marks)

                                                                                 [ 20 MARKS]