Question

The following trial balance has been extracted from the ledger of Hensen, a sole trader as at 31 December 2016, end of his most recent financial year.

Hensen Trial Balance as at 31 December 2016	Debit (RM)	Credit (RM)
Property ( at cost)	150,000
Equipment ( at cost)	87,500
Provision for depreciation (as at 1 January 2016)
•       Property		15,000
•       Equipment		35,000
Stock, as at 1 January 2016	15,000
Purchases	359,600
Sales		485,000
Discount allowed and received	3,370	4,420
Wages and salaries	52,360
Bad debts	1,720
Loan interest	1,560
Carriage outward	8,310
Other operating expenses	38,800
Trade receivable	46,200
Trade payable		33,600
Provision for doubtful debts		280
Cash on hand	250
Bank overdraft		14,500
Drawings	28,930
13% Loan		12,000
Capital, as at 1 January 2016		193,800
	793,600	793,600

Additional information as at 31 December 2016 is available:

1. Stock as at 31 December 2016 was valued at RM36,000
2. Depreciation for the year ending 31 December 2016 has yet to be provided as follows:
   • Property – 1% using straight line method
   • Equipment – 15% using reducing balance method
3. Wages and salaries are accrued by RM250
4. Other operating expenses include certain expenses prepaid by RM600 and accrued by RM400
5. Provision for bad debts is to be adjusted to 0.5% (0.005) of trade receivable as at 31 December 2016.
6. Purchase includes goods valued at RM3,200 which were withdrawn by Mr Hensen for his personal use.
7. A provision is to be made for loan interest

Required
Prepare the Income Statement for the year ending 31 December 2016 and a Statement of Financial Position as at that date.

*I have no other info for this question. Please help me get the best answer for this question.

Answer 1