JAN 2024 (FUBLISHED FS)

SOLUTION 1

a.
AMG Bhd
Statement of profit and loss and other comprehensive income
for the year ended 31 December 2022

RM’000
Revenue (276,505,000 – 250,000) 276,255
Cost of sales (106,520,000+500,000) (107,020)
Gross profit 169,235
Other income - Rental 860
Administrative expenses (26,550) W1
Deficit on revaluation of land (85M – 84M) (1,000)
Distribution expenses (9,500)
Other operating expenses – Damage cost (1,000)
Profit from operation 132,045

Finance expenses (720)

Income from investment 4,500
FV loss on investment property (4.5M–5M) (500)
135,325
Profit before tax
Income tax expense (26,000)
Profit for the year 109,325

Other comprehensive income:

Surplus on revaluation of freehold property 2,000
[18m-(20m-6m)]
Total comprehensive income 111,325

Workings 1:
Admin Dist exp Finance
exp exp
RM’000 RM’000 RM’000
As per Trial Balance 16,280 9,500 720
Depreciation on building (2% x 2,000
100M)
Depreciation on plant & 6,400
equipment (80M-16M) x 10%
Depreciation of freehold 450
property (18M/40 years)
Maintenance expense 1,420
Total 26,550 9,500 720
b.

AMG Bhd
Statement of changes in equity for the year ended 31 December 2022

Asset
Ordinary revaluation Retained
shares reserve earning
RM’000 RM’000 RM’000
Bal as at 1 Jan 2022 122,000 - 44,900
Prior year adjustment –
maintenance cost (2,200)

Restated balance 42,700

Surplus on revaluation of
freehold property 2,000
Current year profit 109,325
Ordinary shares dividend (6,800)
Bal as at 31 Dec 2022 122,000 2,000 145,225
c.
AMG Bhd
Statement of financial position as at 31 December 2022
Non-current assets RM’000
Property, plant and equipment 251,150
Investment properties (5m-0.5m) 4,500
Long term investments 21,000
276,650
Currents assets
Inventory (12.5m-0.5m) 12,000
Trade receivable 13,275
Bank 16,350
318,275
Equity
Share capital 122,000
Reserves 147,225
269,225

Non-current liabilities
8% bank loan 9,000

Current liabilities
Trade payable 35,600
Tax payable (26m-25m) 1,000
Provisions for damages 1,000
Unearned revenue 250
Accrued maintenance cost 2,200
318,275
Note on PPE
Land Freehold Building Plant and Total
property equipment
Cost/valuation RM’000 RM’000 RM’000 RM’000 RM’000
As at 1 Jan 2022 85,000 20,000 100,000 80,000
Surplus on revaluation 2,000
Deficit on revaluation (1,000)
Elimination of acc dep (4,000)
As at 31 Dec 2022 84,000 18,000 100,000 80,000
Accumulated
Depreciation
As at 1 Jan 2022 - 4,000 6,000 16,000
Current year - 450of 2,000of 6,400of
depreciation
Elimination of acc dep (4,000)
As at 31 Dec 2022 - 450 8,000 22,400
Carrying amount 84,000 17,550 92,000 57,600 251,150

ii. Contingent liabilities

On 2 January 2023, part of company’s warehouse was damaged by heavy floods. The
loss was estimated at RM235,000.