QUESTION 2

INCOME STATEMENT AFTER THE ADJUSTMENT

AMOUNT (RM)
SALES
LESS COST OF GOOD SOLD:
OPENNING INVENTORY
PURCHASE
CARRIAGE INWARD
LESS CLOSING INVENTORY

AMOUNT (RM)
702,833.00

15,620.00
595,900.00
8,300.00
17,000.00
602,820.00

GROSS PROFIT
LESS EXPENSES:
RENT
BUSINESS RATE
INSURANCE
POSTAGE
STATIONERY
ADVERTISING
WAGES
BAD DEBTS
DEPRECIATION
PROVISION OF DOUBTFUL DEBTS

100,013.00

17,750.00
8,300.00
840.00
780.00
523.00
2,000.00
30,300.00
900.00
80,000.00
60.00
141,453.00

NET LOSS

-41,440.00

BALANCE SHEET AFTER THE ADJUSTMENT

AMOUNT (RM)
FIXED ASSET:
EQUIPMENT ON COST
ACC.DEP EQUIPMENT
CURRENT ASSET:
ACCOUNT RECEIVABLE
CASH
BANK
INENTORY
PREPAID:
INSURANCE
ADVERTISING

AMOUNT (RM)
800,000.00
230,000.00
570,000.00

17,520.00
2,100.00
13,257.00
17,000.00
1,150.00
500.00
51,527.00

LESS CURRENT LIABILITIES:

ACCOUNT PAYABLE
ALLOWANCE FOR DOUBTFUL DEBTS
ACCRUAL: RENT
BUSINESS RATE
STATIONERY

21,600.00
660.00
2,150.00
2,100.00
160.00
26,670.00
24,857.00
594,857.00

WORKING CAPITAL

OWNER'S EQUITY:
CAPITAL
NET LOSS
LESS DRAWING

656,297.00
-41,440.00
614,857.00
20,000.00
594,857.00