The document provides the trial balance and additional financial information for On-vest Software Enterprise as of January 31, 2009. It asks to prepare an income statement and balance sheet based on the information given. The income statement will show the company's revenues, expenses and net income for the year. The balance sheet will report the company's assets, liabilities and equity as of the specified date.

1. Tutorial 9: Final Accounts of the Sole Trader
Question 1
Mr. Tan works as an accounting clerk in On-vest Software Enterprise. The
principal activities of the company are selling software program and providing
maintenance services to the clients. Mr. Tan was asked to prepare a financial
statement for the year ended 31 January 2009. He extracted the following ledger
balances:
ON-VEST SOFTWARE ENTERPRISE.
Trial Balance as at 31 January 2009
Debit (RM) Credit (RM)
Cash 8,000
Bank 967,000
Trade debtors 4,500
Supplies 200
Computer equipment 350,000
Furniture 20,000
Land 40,000
Accumulated depreciation:
Computer equipment 70,000
Furniture 2,000
Trade creditors 500
Salaries payable 7,000
Unearned revenue 12,650
Provision for doubtful debt 550
Paid up capital 500,000
Sales and purchase 195,000 422,000
Service revenue 8,900
Interest expenses 90,000
Salaries expenses 17,550
Advertising expenses 25,000
Miscellaneous expenses 4,500
Bad debt expenses 900
Prepaid rent 6,000
Inventory (1 February 2008) 295,000
Mortgage loan (12% p.a.) 1,000,000
Accrued electricity bill 1,250
Carried inwards 460
Discount received and discount allowed 1,000 260
2,025,110 2,025,110

2. Additional information:
(i) A stock take values the closing stock at RM166,000.
(ii) Received RM 2,500 from Spidernet Enterprise for the purpose of
providing software maintenance service. However, the service has
yet to be provided.
(iii) Prepaid rent of RM300 had expired.
(iv) Depreciation for the fixed assets are based on the following data:
Computer Equipment 20% on net book value
Furniture 10% on cost
(v) 10% of the trade creditors have been paid by cash.
(vi) One of the trade debtors, Supermario Enterprise, which owed
RM2,000 has been recognized as bankrupt.
(vii) A 25% doubtful debt provision is necessary on the year-end trade
debtor’s balance.
(viii) The remainder of a full year’s interest on the mortgage loan is still
outstanding.
.
Required:
(a) Draw up an Income Statement for On-vest Software Enterprise for
the year ended 31 January 2009.
(b) Prepare a Balance Sheet for On-vest Software Enterprise. as at 31
January 2009.