TUTORIAL

COMPANY ACCOUNT

Question 1

The following information has been extracted from the books of Wazz Berhad as of 31
October 2020:
Dr Cr
Bank 4,000
Capital: 200,000 issued and fully paid ordinary shares of RM1 200,000
each
100,000 issued and fully paid 8% preference shares of RM1 each 100,000
Debenture loan stock (10%: repayable 2029) 60,000
Debenture loan stock interest 6,000
Dividends received 1,400
Dividends paid: Ordinary interim 10,000
Preference 8,000
Freehold land at cost 400,000
Investments (listed: market value on 31 October 2020 was 20,000
RM22,000)
Office expenses 94,000
Motor van at cost 30,000
Motor van: accumulated depreciation (on 1 November 2019) 12,000
Motor van expenses 5,400
Purchases 440,000
Retained profits (on 1 November 2019) 18,000
Sales 600,000
Share premium account 20,000
Stocks at cost (on 1 November 2019) 40,000
Account Payable 100,000
Account Receivable 54,000
1,111,400 1,111,40
0

Additional information:
1. The stocks on 31 October 2020 were valued at their historical cost of RM80,000.
2. Depreciation is to be charged on the motor van at a rate of 20% per annum on cost. No
depreciation is to be charged on the freehold land.
3. The company tax for the year has been estimated to be RM20,000.
4. The directors propose to declare a final ordinary dividend of RM0.10 per share.
5. The authorized share capital of the company is as follows:
(a) 300,000 ordinary shares of RM1 each; and
(b) 150,000 preference shares of RM1 each.

Required:
a) Prepare Statement of Comprehensive income for Wazz Berhad for the year ended 31
November 2020.
b) Prepare a statement of changes in equity for the year ended 31 November 2020.
c) Prepare a statement of financial position as of 31 November 2020.
Question 2

The following trial balance has been extracted from Medora Berhad as of 28 February 2021:

Debit Credit
Advertising 6,000
Bank 60,000
Interest 12,000
Account Payable 240,000
Account Receivable 429,000
Directors’ remuneration 90,000
Buildings (at cost) 2,400,000
Accumulated depreciation at 1.3.2020 306,000
General expenses 45,000
Investments at cost 90,000
Investment income 15,000
Motor vehicles (at cost) 108,000
Accumulated depreciation (at 1.3.2020) 54,000
Preference dividend paid 45,000
Preference shares (cumulative 10% shares of RM1 each) 450,000
Retained profit (at 1.3.2020) 300,000
Purchases 1,440,000
Repairs and renewals 12,000
Sales 2,700,000
Share capital 1,500,000
(Authorized, issued and fully paid ordinary shares of RM1 each)
Share premium 75,000
Stock (at 1.3.2020) 360,000
Salaries 663,000
5,700,000 5,700,000

Additional information:
1. Stock on 28 February 2021 was valued at RM420,000. COGS & CURRENT ASSET
2. Depreciation for the year of RM84,000 is to be provided on buildings and RM27,000 for
motor vehicles.
3. A provision of RM18,000 is required for the auditors’ remuneration.
4. RM6,000 had been paid in advance for renewals.
5. Accrued company tax on 28 February 2021 is RM180,000.
6. The directors propose to declare an ordinary dividend of RM0.10 per share.
7. The market value of the investments on 28 February 2021 was RM105,000.

Required:
a) Prepare Statement of Comprehensive income for Medora Berhad for the year 28
February 2021
b) Prepare a statement of changes in equity for the year ended 28 February 2021
c) Prepare a statement of financial position as of 28 February 2021.