Fixtures and fittings Building 10% - Reducing balance method 2% - Straight line method 6) During the year, the proprietor has taken goods costing RM2,350 and give to his mother. He also took cash of RM800 per month from the business for his personal consumption. Cash drawings had been recorded in a Salary Account. 7) It has been agreed that further debts amounting to RM440 are to be written off against specific customers, and the closing provision for doubtful debts is to be adjusted to 2% of the revised account receivables figure. 8) The bank loan carries an interest rate of 10% per annum. It is the company policy to pay interest charges at the end of every year. Required: a) Prepare Marvin Enterprise's Statement of Profit or Loss (post adjustments) for the year ended 31 July 2021. b) Prepare Marvin Enterprise's Statement of Financial Position (post adjustments) as at 31 July 2021.
Fixtures and fittings Building 10% - Reducing balance method 2% - Straight line method 6) During the year, the proprietor has taken goods costing RM2,350 and give to his mother. He also took cash of RM800 per month from the business for his personal consumption. Cash drawings had been recorded in a Salary Account. 7) It has been agreed that further debts amounting to RM440 are to be written off against specific customers, and the closing provision for doubtful debts is to be adjusted to 2% of the revised account receivables figure. 8) The bank loan carries an interest rate of 10% per annum. It is the company policy to pay interest charges at the end of every year. Required: a) Prepare Marvin Enterprise's Statement of Profit or Loss (post adjustments) for the year ended 31 July 2021. b) Prepare Marvin Enterprise's Statement of Financial Position (post adjustments) as at 31 July 2021.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 48E
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Do Question 2a) only
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