Question 1 Mr Chandra’s ledger accounts for the year ended 30th April 2016 showed the following balances:- RM Premises at cost 250,000 Machinery at cost 52,000 Provision for depreciation on machinery

Question 1Mr Chandra’s ledger accounts for the year ended 30th April 2016 showed the following balances:-RMPremises at cost250,000Machinery at cost52,000Provision for depreciation on machinery at 1 May 201515,600Provision for doubtful debts at 1 May 2015 (Cr)500Sales243,000Purchases184,000Return inwards2,040Return outwards1,980Carriage inwards350Carriage outwards800Rent received2,420Discount allowed1,800Discount received1,300Electricity2,100General expenses9,340Stock at 1 May 201513,500Debtors9,000Creditors11,460Bank balance overdrawn8,260Cash990Drawings18,600Long-term loan at 11% per annum60,000Capital 1May 2015200,000Additional information on 30 April 2016:1. Stock was valued at RM15,1002. No interest has been paid or provided for on the loan, which had been taken out on 1st November 20153. Mr Chandra’s tenant had paid only eleven month’s rent; one month’s rent was due and unpaid4. Electricity paid for the period 1 May 2016 to 30th June 2016 amount to RM405. General expenses which was due and unpaid amounted to RM506. One of the debtors, Mr Phillo had passed away and the company decided to write-off his debts of RM200.Depreciation was to be provided on machinery at 40% using the reducing balance methodDoubtful debts provision was to be 3% of debtors at the end of the yearRequired:a. Prepare Mr Chandra’s Income Statement for the year ended 30th April 2016b. Prepare Mr Chandra’s Statement of Financial Position as at 30th April 2016
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