explain statement of profit or and statement of financial position

Question 2

(i). Explain the following items:

a) Statement of Comprehensive Income

b) Statement of financial Position

(Each explanation = 10 marks * 2 = 20 marks)

(ii). Classify the following items:

Total RM Asset/Liabilities/Equity/Revenue/Expenses

Inventories @ 1 Jan 2009 21,950

Office equipment 20,000

Motor vehicles 60,000

Trade receivables 26,000

Bank 18,000

Trade payables 18,500

Drawings 14,000

Loan 50,000

Sales 475,000

Purchases 400,000

Carriage outward 5,600

Discount received 3,800

Discount allowed 4,000

Salaries 35,000

Capital 57,250

Closing Inventory 10,950

(16 marks)

(iii). Based on information in (ii), generate statement of comprehensive income and statement of financial position.