PSPM 2014/2015 (QUESTION 3)

Ipin, a graduate in the field of plantation and agricultural industry has established the Perniagaan
Ayam Segar. Below are the account balances of this company for the year ended 31 August 2014:

Accounts RM
Akaun
Capital (1 September 2013) 150,000
Sales 212,500
Purchase Returns 1,400
Purchase 175,360
Rent expense 3,000
Utilities expense 18,500
Salaries expense 6,120
Insurance expense 2,400
Freight-in 2,870
Buildings 250,000
Vehicles 88,000
Accumulated depreciation – Buildings (1 September 2013) 12,500
Accumulated depreciation – Vehicles (1 September 2013) 17,600
Inventory (1 September 2013) 13,400
Accounts Receivable 19,000
Accounts Payable 30,830
Bank 16,550
Cash 4,630
Long term loans 175,000

Additional information:
1. Inventories on 31 August 2014 are RM12,000.
2. Buildings are depreciated at a rate of 2.5 per cent on a straight-line basis.
3. Vehicles are depreciated at a rate of 20 per cent on a straight-line basis.
4. Abu Bakar (Accounts receivable), was declared bankrupt on 20 August 2014. The balance
of his debt is RM1,000.
5. RM600 salary for August 2014 is still unpaid.
6. The insurance paid is for a period of 12 months starting from 1 May 2014.

REQUIRED:

(i) Prepare the journal entries for transactions (2) to (6) (omit explanations).
(ii) Prepare a Statement of Comprehensive Income for Perniagaan Ayam Segar for the year
ended 31 August 2014. (Net loss = RM19,600)
(iii) Prepare the Statement of Financial Position for Perniagaan Ayam Segar as at 31 August
2014. (RM336,830)