ACC6033 INTERMEDIATE ACCOUNTING I TUTORIAL

REQUIRED: For each question, prepare the financial statements for publication in accordance with MFRS 101
Presentation of Financial Statements and other Malaysian Financial Reporting Standards.

QUESTION 1

Below is the list of account s for One Bhd as at 31 December 2017.

RM’000 RM’000
Sales 2,590
Cost of sales 1,500
Administrative expenses 275
Selling and distribution expenses 310
Directors remuneration 40
Finance expenses 50
Dividend income 45
Rental income 12
Land 4,500
Building 1,550
Motor vehicles 500
Accumulated depreciation on 1 January 2017:
Building 305
Motor vehicles 200
Investment 200
Inventories 380
Account receivable and payable 375 120
Bank 370
Tax paid 50
Ordinary share capital 5,023
8% preference share capital 1,000
General reserve 15
Retained profit at 1 January 2017 880
Interim ordinary dividend 50
Interim preference dividend 40
10,190 10,190

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ACC6033 INTERMEDIATE ACCOUNTING I TUTORIAL

Additional information:

1. The depreciation policy of the company are as follows:

Land is not depreciated.
Building RM25,000
Motor vehicles RM60,000
The depreciation on motor vehicle is charged as distribution cost.
2. The land was revalued to RM5,000,000
3. Tax expenses during the year was estimated at RM48,000
(SOCI: RM839,000, SOCE:RM7,667,000, SOFP:RM7,787,000)

QUESTION 2

The following information is about the trial balance of Rich Mind Bhd as at 31 December 2018:

Rich Mind Bhd.

Trial Balance as at 31 December 2016

RM RM
Ordinary shares 4,000,000
10% Preference shares 300,000
5% debentures 200,000
Sales 3,200,000
Cost of sales 390,000
Land and building (cost) 780,000
Plant and machineries (cost) 300,000
Vehicles (cost) 250,000
Accumulated depreciation:
Plant and machineries 72,000
Vehicles 75,000
Investment 410,000
Interim Dividend:
Preference shares 15,000
Ordinary shares 40,000
Investment income 28,800
Auditor’s fees 23,000
Directors’ emolument 100,000
General expenses 55,600
Tax expenses 54,700
Retained earnings as at January, 1 277,300
Trade receivables and payables 73,900 145,000
Advertisement expenses 53,200

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ACC6033 INTERMEDIATE ACCOUNTING I TUTORIAL

Salesperson commission and allowance 85,000

Sales and distribution 25,000
Debentures interest 10,000
Cash at bank 5,632,700
8,298,100 8,298,100

Additional information:
1) General expenses include:
Depreciation of plant and machineries – 8% on cost.
Depreciation of vehicles- 10% on cost.
Both expenses are charged as administrative and distribution respectively.
2) The cost of unsold inventories at 31 December is RM19,700
3) Tax paid for the current year is RM35,000
4) The fair value of the land was RM1,000,000.
(SOCI: RM2,603,300, SOCE:RM7,125,600, SOFP:RM7,490,300)

QUESTION 3

The following information is about the trial balance of Jingga Bhd as at 31 December 2017.
Jingga Bhd
Trial Balance as at 31 December 2017
Debit Credit
RM’000 RM’000
10% Preference shares at RM2 each 5,000
Ordinary shares at RM1 each 15,480
Assets revaluation reserves 5,700
Retained profit as at 1 January 7,700
Income tax 3,850
Long term loan 2,000
Investment 1,030
Land (revaluation) 1,000
Building (cost) 1,000
Vehicle (cost) 400
Equipment (cost) 200
Accumulated depreciation as at 1 January
Building 40

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ACC6033 INTERMEDIATE ACCOUNTING I TUTORIAL

Vehicle 120
Equipment 60
Sales 20 000
Cost of sales 8,700
Salaries 4,000
Utility 400
Advertisement expenses 1,400
Preference shares dividend-interim 250
Ordinary shares dividend-interim 420
Interest expenses 100
Bank 32,650
Trade receivables and payables 1,100 450
Vehicle insurance 50
56,550 56,550

Additional information:
1) At 31 December, the cost of unsold inventory is RM3,500,000.
2) The company’s policy is to depreciate non-current asset (except land) using the straight-line method on
a yearly basis. The building is estimated by 2 percent on cost, while vehicle and equipment are 10
percent and 20 percent on cost respectively. Depreciation on building and office equipment are charged
to administrative expenses, on the other hand depreciation on vehicle is charged to distribution
expenses.
3) Tax paid for the current year is RM350 000
(SOCI: RM1,400,000, SOCE:RM34,610,000, SOFP:RM40,560,000)

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ACC6033 INTERMEDIATE ACCOUNTING I TUTORIAL

QUESTION 4

Fitness First Bhd., a company incorporated in Malaysia is involved in manufacturing and selling of gymnasium
and fitness equipment. Given below is the trial balance of Fitness First. Bhd as at 30 June 2017:

Debit Credit
RM’000 RM’000
Revenue 95,000
Cost of sales 34,755
Distribution expenses 12,400
Administrative expenses 31,000
Finance costs 200
Ordinary share capital 61,500
Retained earnings as at 1 July 2016 42,800
Interim dividend: Ordinary Shares 5,500
Tax paid 3,200
Property, plant and equipment as at
1 July 2016:
Land at cost 13,900
Building at cost 34,200
Motor vehicle at cost 13,600
Accumulated depreciation as at 1 July 2016:
Building 1,640
Motor vehicles 1,360
Intangible assets 10,000
Inventories on 30 June 2017 12,000
Bank and cash balances 30,665
Trade receivables and payables 12,180 8,800
8% Long term loan 2,500

213 600 213 600

Additional Information:
1. On 1 July 2016, the fair value of the land was RM15,000,000. The company adopts the revaluation
model for its land.
2. The depreciation expenses as follows: Building RM2,880,000 and motor vehicle RM1,360,000 .
3. The tax expenses for the year was detemined to be RM3,700,000.
(SOCI: RM9,805,000, SOCE:RM108,605,000, SOFP:RM120,405,000)

UNIVERSITI SULTAN AZLAN SHAH 5

ACC6033 INTERMEDIATE ACCOUNTING I TUTORIAL

QUESTION 5
Below is the trial balance of Yukami Bhd as at 31 March 2018:
RM RM
Ordinary shares 166,500,000
8% Preference shares 20,000,000
Sales 471,000,000
Retained profit as at 1 April 2017 66,700,000
Dividend income 11,000,000
6% Debenture 60,000,000
Trade payables 25,000,000
Commission received 900,000
Tax paid 32,500,000
Interim dividend- preference shares 800,000
Cost of sales 150,600,000
Wages and salaries 142,700,000
Insurance 6,000,000
Debenture interest 1,500,000
Land 22,000,000
Building 69,000,000
Accumulated depreciation- building at 1 April 2017 6,900,000
Motor vehicle 43,5000,000
Accumulated depreciation- motor vehicle at 1 April 2017 8,700,000
Investment 74,600,000
Trade receivables 64,500,000
Patents 95,000,000
Inventories 74,000,000
Bank 60,000,000
836,700,000 836,700,000

The following information has not been taken into account:

1. Land costing RM10,000,000 was revalued to RM24,000,000
2. Taxation expense for the year was estimated at RM31,000,000
3. The depreciation policies of Yukami Bhd are as follows: Building 2% per annum – Straight line method,
motor vehicle 20% per annum – reducing balance method and land- no depreciation
4. All expenses that relate to motor vehicle is considered as selling and distribution expenses
(SOCI: RM142,760,000, SOCE:RM395,160,000, SOFP:RM480,160,000)

UNIVERSITI SULTAN AZLAN SHAH 6