Business Accounting

Chapter 7 Financial Statements with Year End Adjustments

Cash 1,140
Rental 8,450
Carriage inwards 190
160,250
160,250

Additional information:

i. Closing inventory was RM13,210 at cost price and RM14,200 at market price.
ii. Depreciation using straight line method is to be charged as follows:

Motor Vehicles 10% per annum

Office Equipment 10% per annum

iii. Carriage inwards included in the carriage outwards amounting RM360.
iv. Provision for doubtful debts is to be adjusted to 5% on debtors.
v. Accrued salaries RM2,600 and prepaid rates RM150.
vi. Rental was paid for 13 months.

You are required to prepare:
a) Statement of Comprehensive Income for the year ended 30 June 2021
b) Statement of Financial Position as at 30 June 2021

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Amla et al. (2017). Financial Accounting for Non-Accounting Students, 5th Edition,
McGraw-Hill.

Heng Seai Kei, (2013). Fundamentals of Accounting. Oxford Fajar Polytechnic Series.

Inland Revenue Board of Malaysia. (2021, August 26). IRMB’s profile
http://www.hasil.gov.my/bt_goindex.php?bt_kump=2&bt_skum=2&bt_posi=1&b
t_unit=2&bt_sequ=1&bt_lgv=2

Malaysian Institute of Accountants. (n.d). About the Malaysian Institute of Accountants.
https://www.mia.org.my/v2/discover-mia/discover-mia.aspx

Mohd Nizal Hanis et al. (2018). Fundamental of Financial Accounting, 2nd Edition, Oxford
University Press.

Needless et al. (2014). Principles of Accounting, 12th Edition, South-Western Cengage
Learning

Politeknik Malaysia. (2020). DPA10183 Business Accounting. Course Information.
Diploma in Banking and Finance.

Wan Madznah et al. (2018). Fundamental of Accounting for Non- Accounting Students.
Oxford University Press.

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