Question 1

Ezra
Ezra has drawn up the following Trial Balance at 31 October 2015, after preparing his draft Income Statement for the year ended 31 October 2015
Trading Account for the year: RM RM
Debit Credit Gross Profit (155,000-300) 154,700
RM RM Less: Expenses
Capital 35,000 Wages (66,258+1,050) 67,308
Gross profit 155,000 General Expenses 25,487
Wages 66,258 Motor Expenses 6,871
General expenses 25,487 Carriage out (945-300) 645
Motor expenses 6,871 Office expenses (12823-250) 12,573
Carriage 945 Bad debts 190
Office expenses 12,823 Depreciation:
Drawings 6,320 Equipment (16,200 X 10%) 1,620
Equipment 16,200 Motor Vehicles {(25400-12200) X 30%} 3,960
Motor vehicles 25,400 Net Profit 118,654
Inventory at 31 October 2012 18,740 36,046
Debtors 32,490 Ezra
Creditors 17,910 Statement of Financial Position as at 31 October 2015
Accumulated for depreciation: Cost Accumulated Carrying
Equipment 7,500 Depreciation Values
Motor vehicles 12,200 Non- Current Assets RM RM RM
Bank 16,076 Equipment 16,200 9,120 7,080
227,610 227,610 Motor Vehicles 25,400 16,160 9,240
41,600 25,280 16,320
Additional information at 31 October 2015: Current Assets
(1) Carriage RM945 included RM300 for goods delivered to Ezra's business Inventory 18,740
(2) Wages accrued RM1,050 Account Receivable (32490-190) 32,300
(3) Office expenses prepaid RM250 Prepayment 250
(4) A debt of RM190 should be written off as irrecoverable Bank 16,076
(5) Depreciation is calculated as follows: 67,366
Equipment 10% per annum straight line method Total Assets 83,686
Motor vehicles 30% per annum reducing balance method.
Capital
Prepare Balance as at 1 November 2014 35,000
(a) Income Statement for the year ended 31 October 2015 Add: Net Profit 36,046
(b) Statement of Financial Position as at 31 October 2015 71,046
Less: Drawings (6,320)
64,726
Current Liabilities
Account payable 17,910
Accruals 1,050
18,960
Total Equity and Liabilities 83,686
Question 2
Lian
Lian has drawn up the following Trial Balance at 31 March 2013, after preparing his draft Income Statement for the year ended 31 October 2015
Trading Account for the year: RM RM RM
Debit Credit
RM RM Sales
Purchases and sales 86,451 215,680 Less: Return Inwards
Returns 1,269 627
Rental Income 900 Less: Cost of Sales
General expenses 45,825 Opening Inventory 1 April 2012
Wages 83,500 Purchases
Drawings 6,000 Less: Return Inwards
Motor Expenses 3,654
Premises 44,000
Motor vehicles 24,800 Less: Closing Inventory 31 march 2013
Equipment 11,500 Cost of Sales
Inventory at 1 April 2012 8,500 Gross Profit
Account Receivable and Account Payable 33,472 12,942 Add: Other Income
Capital 100,000 Rental Income
Accumulated for depreciation:
Equipment 3,450 Less: Expenses
Motor vehicles 6,200 General Expenses
Bank 9,172 Wages
348,971 348,971 Motor Expenses
Depreciation
Equipment
(1) Inventory RM8,750 Motor Vehicles
(2) Motor Expenses includes RM750 for carriage of goods from suppliers
(3) Rental Income RM300, was not recorded in the books. Lian used this money for private purposes. Net Profit/ (Net Loss)
(4) General Expenses prepaid RM850
(5) Wages accrued RM1,650
(6) A debt RM450 should be treated as irrecoverable
(7) Depreciation policy:
Equipment 10% per annum straight line method
Motor vehicles 25% per annum reducing balance method.
Prepare
(a) Income Statement for the year ended 31 March 2013
(b) Statement of Financial Position as at 31 March 2013