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    ACC106 Financial Statements Worked Example

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    giafazirah
    Kedai Makan Keluarga reported a net loss of RM820 for the year ended 31 December 2016. [2] Key figures from the income statement include sales of RM93,000 and cost of goods sold of RM58,350. [3] The statement of financial position showed total assets of RM163,730 financed by capital of RM138,930 and current liabilities of RM24,800.

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    ACC106 Financial Statements Worked Example

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    giafazirah
    5K views4 pages
    Kedai Makan Keluarga reported a net loss of RM820 for the year ended 31 December 2016. [2] Key figures from the income statement include sales of RM93,000 and cost of goods sold of RM58,350. [3] The statement of financial position showed total assets of RM163,730 financed by capital of RM138,930 and current liabilities of RM24,800.

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    Kedai Makan Keluarga reported a net loss of RM820 for the year ended 31 December 2016. [2] Key figures from the income statement include sales of RM93,000 and cost of goods sold of RM58,350. [3] The statement of financial position showed total assets of RM163,730 financed by capital of RM138,930 and current liabilities of RM24,800.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    5K views4 pages

    ACC106 Financial Statements Worked Example

    Uploaded by

    giafazirah
    Kedai Makan Keluarga reported a net loss of RM820 for the year ended 31 December 2016. [2] Key figures from the income statement include sales of RM93,000 and cost of goods sold of RM58,350. [3] The statement of financial position showed total assets of RM163,730 financed by capital of RM138,930 and current liabilities of RM24,800.

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    ACC106

    WORKED EXAMPLE FINANCIAL STATEMENTS

    QUESTION

    The following Trial Balance was extracted from the book of Kedai Makan Keluarga, a
    restaurant business owned by Encik Mustapha as at 31 December 2016:

    Debit Credit

    RM RM

    Capital OE, BS 145100


    Drawings OE, BS 2150
    Cash in hand A, BS 10850
    Bank overdraft L, BS 4000
    Return inward R, IS 3500
    Insurance on premises E,IS 6400
    Salaries of employees E,IS 13400
    Telephone expenses E,IS 1600
    Discounts received R, IS 3850
    Land A, BS 61000
    Investment A, BS 23000
    Machinery A, BS 53000
    Fixtures and fittings A, BS 24000
    Return outward E,IS 1450
    Rent revenue R, IS 5300
    Inventories, 1 January 2016 E,IS 8800
    Sales R, IS 93000
    Purchases E,IS 62700
    Accounts Payable L, BS 18900
    Accounts Receivable A, BS 12000
    Prov for depreciation for machinery L, BS 10250
    Prov for depreciation for fixtures and fittings L, BS 7750
    Miscellaneous expenses E,IS 4000
    Utilities expenses E,IS 2200
    Printing and stationery E,IS 1000
    ---------- -----------
    289600 289600
    ====== ======

    Additional information is as follows:

    i. Inventories as at 31 December 2016 was valued at RM 11000. A, IS & BS

    ii. machinery was depreciated at the rate of 20% per annum by using straight line method.
    Dep = 20% x 53000 = 10600 IS & BS

    iii. fixtures and fittings were depreciated at the rate of 8% per annum on cost.
    Dep = 8% x 24000 = 1920 IS & BS

    1
    iv. Encik Mustapha withdrew RM 2500 cash from the business to buy jewelry for his wife
    and presents for his children. DRAWINGS deduct from cash. both BS

    v. RM 1900 of rent revenue was not yet received. Accrued revenue. IS & BS

    vi. RM 1300 of the utilities expenses and RM 600 of telephone expenses were still unpaid.
    accrued expenses IS & BS

    vii. Encik Mustapha took out RM 700 of the business goods for personal use. . DRAWINGS
    deduct from purchases. IS & BS

    Required:
    a. Prepare the Statement of Profit or Loss for Kedai Makan Keluarga for the year
    ended 31 December 2016.

    b. Prepare the Statement of Financial Position (Balance Sheet) for Kedai Makan
    Keluarga as at 31 December 2016.

    IS = Statement of Profit or Loss

    BS = Statement of Financial Position (Balance Sheet)

    2
    Kedai Makan Keluarga
    Statement of Profit or Loss for the year ended 31 December 2016

    RM RM
    Sales 93,000
    Less: return inwards 3,500
    --------
    89,500

    Cost of Goods Sold


    Opening inventories 8,800
    Add Purchases 62,700
    Less Drawings 700
    Less return outward 1,450
    ---------
    Cost of goods available for sale 69,350
    Less Closing inventories 11,000 58,350
    Gross profit 31,150

    Add income
    Discount received 3,850
    Rent revenue(5300 +1900) 7,200 11,050
    42,200
    Less expenses
    Insurance 6,400
    Salaries of employees 13,400
    Telephone(1600 + 600) 2,200
    Miscellaneous expenses 4,000
    Utilities expenses (2200 + 1300) 3,500
    Printing and stationery expenses 1,000
    Depreciation-furniture 1,920
    Depreciation-machinery 10,600 (43,020)
    Net loss (820)

    3
    Kedai Makan Keluarga
    Statement of financial Position as at 31 December 2016

    Non current Assets Cost Acc. Depreciation NBV


    RM RM RM
    Land 61,000 - 61,000
    Machinery 53,000 20,850 32,150
    Fixtures and fittings 24,000 9,670 14,330

    Investments
    Investments 23,000

    Current assets RM RM
    Inventories 11,000
    Accounts receivable 12,000
    Cash(10850-2500) 8,350
    Accr rent revenue 1,900 33,250
    163730

    Financed by
    Capital 145,100

    Less: Net loss / (820)

    Less: Drawings(2150+2500+700) (5,350)


    138,930

    Current liabilities
    Accounts payable 18,900
    Bank overdraft 4,000
    Accr utilities 1,300
    Accr telephone 600 24,800
    163730

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