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Income Statement & Balance Sheet 2010

The document provides a trial balance and additional financial information for KS Sdn Bhd as of December 31, 2010. It requires preparing an income statement for the year ended December 31, 2010 and a balance sheet as of December 31, 2010. The income statement shows sales of RM10,000, cost of goods sold of RM1,800, other expenses of RM6,105, and net profit of RM2,195. The balance sheet lists assets of RM70,575 including fixed assets of RM40,000 for buildings and RM24,000 for motor vehicles and furniture, and current assets of RM29,620, with total equity and liabilities of RM85,145 including owner's equity of RM82,950

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108 views6 pages

Income Statement & Balance Sheet 2010

The document provides a trial balance and additional financial information for KS Sdn Bhd as of December 31, 2010. It requires preparing an income statement for the year ended December 31, 2010 and a balance sheet as of December 31, 2010. The income statement shows sales of RM10,000, cost of goods sold of RM1,800, other expenses of RM6,105, and net profit of RM2,195. The balance sheet lists assets of RM70,575 including fixed assets of RM40,000 for buildings and RM24,000 for motor vehicles and furniture, and current assets of RM29,620, with total equity and liabilities of RM85,145 including owner's equity of RM82,950

Uploaded by

alia_azizi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd

KS Sdn Bhd

Mr. Kevin is a sole proprietor. The following is taken from his business' book as on 31st December 2010.

Trial Balance as at 31st December 2010


RM RM
Motor vehicle 30,000
Furniture 8,500
Building 40,000
Opening inventory 5,500
Debtors 8,000
Creditors 12,000
Provision for Depreciation - Motor Vehicle 3,000
Provision for Depreciation -Furniture 1,500
Provision for Doubtful Debts 200
Cash 15,000
Bank 3,000
Salary 1,200
Returns 700 900
Discount 500 800
Electricity and water 350
Rent 600
Sales and Purchases 4,000 10,000
Capital 82,950
114,350 114,350

Additional information:
(i) Closing inventory at the cost price of RM7,000 and at the market price of RM6,800.
(ii) The depreciation rate for motor vehicle is 10% on cost and for furniture, 5% on cost.
(iii) The provision for doubtful debts is 3%.
(iv) Accrued electricity and water bill is RM50.
(v) Rent paid is RM45 per month.

Requirement:
Prepare Income Statement for the year ended 31 December 2010 and Balance Sheet as at 31 December 2010.
KS Sdn Bhd
Income Statement for the year ended 31 December 2010
RM RM
Sales
Less: Returns inwards

Less: Costs of Sales


Opening inventory 5,500
Purchases 4,000
Less: Purchase return (900) 3,100
8,600
Less: Closing stock (6,800)
Cost of Sales
Gross Profit

Add: Revenue
Discount Received

Less: Expenses
Depreciation of Motor Vehicle (RM30,000 x 10%) 3,000
Depreciation of Furniture (RM8,500 x 5%) 425
Increase in Prov. For Doubtful Debts ((8000*3%)-200) 40
Electricity (350+50) 400
Salary 1,200
Discount Allowed 500
Rentals (RM45 x 12 months) 540
Net Profit

KS Sdn Bhd
Balance Sheet as at 31 December 2010
RM RM
FIXED ASSETS
Buildings 40,000
Motor Vehicles 30,000 (6,000)
Furniture 8,500 (1,925)
78,500 (7,925)
CURRENT ASSETS
Cash 15,000
Debtors 8,000
(-) Prov. For Doubtful Debts (240) 7,760
Inventory 6,800
Prepaid Rentals (600 - 540) 60

CURRENT LIABILITIES
Creditors 12,000
Bank Overdraft 3,000
Accrued Electricity 50

Financed by:
OWNER'S EQUITY
Capital 82,950
Net Profit 2,195
RM
10,000
(700)
9,300

(1,800)
7,500

800
8,300

6,105
2,195

RM

40,000
24,000
6,575
70,575

29,620

(15,050)
85,145

85,145
85,145

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