Question

Using the trial balance prepared and Statement of Comprehensive Income prepared below, prepare the Statement of Financial Position as at 31 December 2019 for ABC Sdn Bhd.[20marks]

TRIAL BALANCE	ADJUSTMENTS	ADJUSTED TRIAL BALANCE
Accounts	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Land	500,000				500,000
Building	200,000				200,000
Motor vehicles	120,000			1000	119,000
Plant and machinery	70,000				70,000
Retained profit as at 01.01.2019		312,150				312,150
8% debenture		150,000				150,000
Ordinary share		200,000				200,000
Accumulated depreciation as at 31.12.2019:
Building		60,000				60,000
Motor vehicles		69,250				69,250
Plant & machinery		40,000				40,000
Sales returns	3,600				3,600
Purchase returns		4,100				4,100
Sales		700,000				700,000
Purchases	400,000				400,000
Sales discounts	5,000			2000	3,000
Purchase discounts		3,500	2000			1,500
Opening inventory	52,000				52,000
7% Preference shares		50,000				50,000
Provision for bad debts		2,000				2,000
Trade receivables	26,700		3800		30,500
Trade payable		43,200				43,200
Administrative expenses	18,000		500		18,500
Staff training cost	4,000				4,000
Bad debts	12,500				12,500
Motor expenses	27,000		1000		28,000
Rental	90,000				90,000
Bank overdraft		15,400		500		15,900
Wages and salaries	115,000				115,000
Debenture interest	6,000				6,000
Suspense account		200				4000
	1,649,800	1,649,800	7,300	3,500	1,652,100	1,652,100

Statement of comprensive income as at 31st December 2019:

Sales (less return)	696,400
Cost of Goods Sold	400,900
Gross Profit	295,500
Operating Expenses:
Sales Discount	3,000
Purchase Discount	(1,500)
Bad debts	12,500
Administrative expenses	18,500
Motor Expense	28,000
Rental	90,000
Wages	115,000
Debanture Interest	6,000
Total Operating Expenses	271,500
Net Income	24,000

Answer 1

Staff training has not been considered in the given Statement of comprensive income. Therefore, Revise Statement of comprensive income is as follow:-

Particulars	Amount ($)
Sales (less return)	6,96,400
Cost of Goods Sold	4,00,900
Gross Profit	2,95,500
Operating Expenses:
Sales Discount	3,000
Purchase Discount	-1,500
Bad debts	12,500
Administrative expenses	18,500
Motor Expense	28,000
Rental	90,000
Wages	1,15,000
Staff training cost	4,000
Debanture Interest	6,000
Total Operating Expenses	2,75,500
Net Income	20,000

Statement of Financial Position as at 31 December 2019 for ABC Sdn Bhd

BALANCE SHEET AS AT 31st DEC. 2019
Particulars	Note	Amount ($)
NON CURRENT ASSETS
Property, plant and equipment and Investment Property	1	7,19,750
TOTAL NON CURRENT ASSETS		7,19,750
CURRENT ASSETS
Inventories	2	47,000
Trade receivables	3	28,500
TOTAL CURRENT ASSETS		75,500
TOTAL ASSETS		7,95,250
SHAREHOLDERS' EQUITY
Share capital	4	2,50,000
Surplus		20,000
Retained earnings		3,12,150
TOTAL SHAREHOLDERS’ EQUITY		5,82,150
NON CURRENT LIABILITIES
Interest-bearing loans and long term borrowings		1,50,000
TOTAL NON CURRENT LIABILITIES		1,50,000
CURRENT LIABILITIES
Banks overdrafts and short-term borrowings		15,900
Trade payables		43,200
Other liabilities		4,000
TOTAL CURRENT LIABILITIES		63,100
TOTAL LIABILITIES		2,13,100
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES		7,95,250
Note 1 : Property, Plant and Equipments
Particular	Cost	Accumulated Depreciation	W.D.V
Land	5,00,000		5,00,000
Building	2,00,000	60,000	1,40,000
Motor vehicles	1,19,000	69,250	49,750
Plant and machinery	70,000	40,000	30,000
Total	8,89,000	1,69,250	7,19,750
Note 2 : Inventory
Particular	Amount ($)
Opening Inventory	52,000
Purchases	4,00,000
Purchases Return	-4,100
Total Cost	4,47,900
Less: Cost of Sales	4,00,900
Closing Inventory	47,000
Note 3 : Trade receivables
Particular	Amount ($)
Gross Trade Receivables	30,500
Less: Provision for Bad Debts	-2,000
Net Trade Receivables	28,500
Note 4 : Share capital
Particular	Amount ($)
Ordinary share	2,00,000
7% Preference shares	50,000
Net Trade Receivables	2,50,000