Answer to Question #308020 in Accounting for atans

Question

The following are the accounts’ balances of GM. at the end of December 2021.

 

Trial balance of GM as at 31 December 2021 Debit(RM)  Credit (RM)

Sales 126,500

Purchases 99,850

Premises (cost) 100,000

Accumulated depreciation at 1 January 2021_Premises 25,000

Plant (cost) 18,000

Accumulated depreciation at 1 January 2021_Plant 2,300

Wages and salaries 8,900

Rent expense 7,500

Inventories at 1 January 2021 5,000

Capital at 1 January 2021 80,000

Drawings 25,000

Carriage inwards 4,000

Account receivables and Account payables 27,500 16,000

Bad debts written off 5,000

Other revenue 2,000

Cash at bank 18,950

Bank loan 30,000

300,750 300,750

 

Additional information as at 31 December 2021:

i.       Closing inventories is RM12,500.

ii.     Wages and salaries accrued amount to RM700.

iii.   Rent prepaid amounts to RM300.

iv.   Bank loan interest of 10 per cent per annum is outstanding.

 

You are required to prepare the following for GM:

a)   Statement of Comprehensive Income for the year ended 31 December 2021.

Answer 1

The answer to your question is provided in the image: