Preparation of SOPL & SOFP

Carriage inwards and import duty to be recorded in

• SOFP: Current Asset

• SOFP: Current Liabilities

• SOPL: Cost of Goods Sold

• SOPL: Expenditure

Carriage outwards to be recorded in

• SOFP: Current Asset

• SOFP: Current Liabilities

• SOPL: Cost of Goods Sold

• SOPL: Expenditure

Bank with credit balance of RM2,000 to be recorded as

• Bank balance RM2,000 under Current Assets in SOFP

• Bank overdraft RM2,000 under Current Liabilities in SOFP

• Revenue RM2,000 in SOPL

• Other Income RM2,000 in SOPL

Bank with debit balance of RM6,000 to be recorded as

• Bank balance RM6,000 under Current Assets in SOFP

• Bank overdraft RM6,000 under Current Liabilities in SOFP

• Revenue RM6,000 in SOPL

• Other Income RM6,000 in SOPL

How does the Interest on loan RM3,600 outstanding at year end to be recorded in SOPL?

• + Interest received RM3,600 in SOPL

• - Interest received RM3,600 in SOPL

• + Interest paid RM3,600 in SOPL

• - Interest paid RM3,600 in SOPL

How does the Interest on loan RM3,600 outstanding at year end to be recorded in SOFP?

• Accrued interest income RM3,600 under Current Assets in SOFP

• Interest income received in advanced RM3,600 under Current Liabilities in SOFP

• Prepaid interest RM3,600 under Current Assets in SOFP

• Accrued interest RM3,600 under Current Liabilities in SOFP

How does the commission received in advanced RM1,200 at year end to be recorded in SOFP?

• Accrued commission income RM1,200 under Current Assets in SOFP

• Commission income received in advanced RM1,200 under Current Liabilities in SOFP

• Prepaid commission expenses RM1,200 under Current Assets in SOFP

• Accrued commission expenses RM1,200 under Current Liabilities in SOFP

How does the commission received in advanced RM1,200 at year end to be recorded in SOPL?

• + Commission received RM1,200 in SOPL

• - Commission received RM1,200 in SOPL

• + Commission paid RM1,200 in SOPL

• - Commission paid RM1,200 in SOPL

Allowance for doubtful debt (AFDD) to be increased from RM1,000 to RM1,400.

How to record this in SOPL & SOFP?

• Doubtful Debts RM400 as Expenses in SOPL

• Doubtful Debts RM400 as Other Income in SOPL

• AFDD RM1,400 as asset contra to reduce T/R in SOFP

• AFDD RM1,000 as asset contra to reduce T/R in SOFP

Allowance for doubtful debt (AFDD) to be reduced from RM2,200 to RM1,600

How to record this in SOPL & SOFP?

• Doubtful Debts RM600 as Expenses in SOPL

• Doubtful Debts RM600 as Other Income in SOPL

• AFDD RM2,200 as asset contra to reduce T/R in SOFP

• AFDD RM1,600 as asset contra to reduce T/R in SOFP