FAR270 Assignment AC1104E

UNIVERSITI TEKNOLOGI MARA CAWANGAN PAHANG
DIPLOMA PERAKAUNAN
FINANCIAL ACCOUNTING 4
FAR270
GROUP ASSIGNMENTS
LECTURER’S NAME:
SIR AZIZI @ HASHIM BIN HASHIM
GROUP MEMBERS:
NAME NO.MATRIX
HASRUL AZANI BIN KHAIRUL 2022857768
MUHAMMAD FARIS BIN MOHD ZUHAR 2022860506
SYED AKMAL BIN SYED MUSA 2022890328
AMIR HAZIQ BIN ASFAZIAN 2022871244
MUHAMMAD FADHLAN FIKRI BIN 2022486794

MOHAMED FAUZI
COMPANY BACKGROUND
Our company name is Aerial Asia Bhd. It was established in 2019 by family . It is located at
No 87 ,Jalan Tunku Abdul Rahman ,Bandar Tasik Selatan, 68100, Selangor . Our company
sells good sports attire such as Shirts ,Football jerseys, sports shoes, sports equipment, etc.
We also got a lot of options from different brands in the world such as Nike ,Adidas, Puma
,Asics, etc. We also sell sports attire and equipment from local brand such as Ortuseight
,Voltra, etc. Other than sportswear we also sell sport equipment such as Dumbbells, running
equipment ,swimwear, outdoor activities equipment and a lot more. We use warehouse to
sell our goods so it has become one of the biggest and cheapest sports selling center in
Malaysia. We also has branch in big malls such as Melawati Mall, Sunway Pyramid mall and
other big malls. We were open everyday starting from 10am – 10pm in weekdays and
10am-12am in weekend .This can help to reach higher sales per month since weekend has
a lot more sales in a day than weekday. For daily transaction, we only accept cashless
payment (Cash in bank only) and also take orders from others (Account Receivables) only
due to our company policies. Our company pays for its supply and we take materials from
other suppliers in order to create the stuff and clothes . Our company closes its financial
statement accounts by 31st December every year.
Transactions
MFRS 116: PROPERTY, PLANT AND EQUIPMENT
1. The bod decided to revalue the land due to the recent changes in the MV. The land was
revalued to a fair value of RM18,000,000 on 1 July 2023.
2.The company sold one of their land at its current value of RM2,000,000 by cheque on 31
December 2023.
3. On 1 January 2023, One of the equipment components was damaged due to the wrong
handling of an unskilled worker. The company decided to replace the component and
purchased a new component costing RM30,000 by cheque. It is expected that a new
component will increase the production capacity. The new component's useful life is 10
years. The old component was acquired on 1 January 2021 at the cost of RM40,000
4. The company has adopted the revaluation model for buildings and land. The building is
depreciated at 6% per annum while the plant and equipment are depreciated over 20 years
of useful life. All the property, plant, and equipment are depreciated on a yearly basis. The
depreciation charges for all assets for the year ended 31 December 2023 have yet to be
recorded.
5. On 1 July 2023, the company acquired a motor vehicle amounting to RM150,000 by

cheque. The depreciation charge is 10% of the cost using a yearly basis.
MFRS 140: Investment Property
1. On 1 March 2023, The company converted a building that had a carrying value and fair
value amounted to 940,000 and 1,200,000 respectively.
2. The investment property has a market value of the investment property building on 31
December 2023 is RM2,000,000.
MFRS 108: Accounting Treatment (Errors & Changes in Accounting Estimates)
1. In June 2021, BOD discovered that one of the company’s ex-employees, Johan
committed a fraud. Cash receipts from customers of RM455,000 were divested by him from
the previous years.
2. On 1st January 2023, there are changes in estimates have been made on the building.
One of the buildings was acquired on 1st January 2022 in the amount of RM1,000,000 with
depreciated 6% on cost on yearly basis. The company decided to change the building’s
depreciation method policy from the straight-line method to reducing balance at a
percentage of 20% on a yearly basis.
MFRS 110: Event After Reporting Period
1. At the year end, one of its account receivables was declared bankrupt. The amount owed
is RM10,000 and it is expected that only 20% of the debt could be collected.
2. Some of the inventories amount RM100,000 were not accounted in the closing stock as at
31 December 2023
MFRS 137: Provisions, Contingent Liabilities and Assets
1. On 1 June 2023, one of the employees of the company got injured from a faulty machine.
He sued the company for damages amount RM2,000,000. The legal adviser told the
company that there will be 60% chance that the company will held liable for
RM1,000,000.(Non-current liability)
2. On 15 March 2023, part of company’s building was damaged by an earthquake. The loss
was estimated at RM200,000. (Note to damage)
MFRS 15: Revenue from contracts with customers
1. On 1 May 2023, The company enter into a contract to transfer a product C and product D
for RM200,000. The contract stated that payment of product D will not occur until they got
product C. The prices of product C are RM120,000 while product D are RM80,000. The
company deliver product D to them on 1 June 2023 and product C on 1 July 2023.
On 1 March 2023, the company enters into a contract to transfer a product to Gospel Bhd on
31 July 2023. It is agreed that Gospel will pay the full price of RM25,000 in advance on 1
April 2023. The contract is non-cancelable. Propel, however, pays on 15 April 2023, and
Harry delivers the product on 31 July 2023.
3 MFRS from the previous semester:
MFRS 9: Payables
1. The price of the item is RM 5000. Trade discount of 5% is received from MaMee Bhd. The
credit terms is 6/10, net 60. The purchase was made on 15 August 2023. On 21 August
2023 the company paid the full amount due to MaMee Bhd.
MFRS 9: Receivables
1.Cruyff Sdn Bhd has purchase good on credit Rm3000 from Kroos bhd .He purchase it on
1/ 6 and then he paid fully on 7 / 6 . the terms on the purchase is 3/10, net 60 days”, a 3%
cash discount on the gross invoiced amount is given if the customer pays within 10 days.
Otherwise, the full gross invoiced amount is payable within 60 days.
MFRS 102: Inventories

1. At the end of the year 2023, BOD had 1,000 units worth of sales in its inventory. These
items were purchased at RM100 per unit. The selling price is RM 120 per unit and the
estimated selling cost is RM 30 per unit.
Other Adjustment
1. Directors also announce that there will be a final dividend for 10% preference shares
2. The interest rate for the loan from Mentari Bank is 5%. The interest has not yet been paid.
3. The tax expense estimated for the current year was RM3,750,000.+
Journal Entries
MFRS 116
1.The bod decided to revalue the land due to the recent changes in the MV. The land was
revalued to a fair value of RM18,000,000 on 1 July 2023.
Date Particulars RM RM
2023 Property, Plant and Equipment 1,375,000

1/7/2023
Asset Revaluation Reserve- Surplus 1,375,000
2.The company sold one of their land at its current value of RM2,000,000 by cheque on 31
December 2023.
2023 Bank 2,000,000

31/12/2023
Land 2,000,000
3.On 1 January 2023, One of the equipment components was damaged due to the wrong
handling of an unskilled worker. The company decided to replace the component and
purchased a new component costing RM30,000 by cheque. It is expected that a new
component will increase the production capacity. The new component's useful life is 10
years. The old component was acquired on 1 January 2021 at the cost of RM40,000
2023 Equipment 30,000

1/1/2023
Bank 30,,000
2023 Accumulated Depreciation 18,000

1/1/2023
SOPL-Loss on Disposal 22,,000
Equipment 40,000
2023 Depreciation 3,000

31/12/2023
Accumulated Depreciation 3,,000
4.The company has adopted the revaluation model for buildings and land. The building is
depreciated at 6% per annum while the plant and equipment are depreciated over 20 years
of useful life. All the property, plant, and equipment are depreciated on a yearly basis. The
depreciation charges for all assets for the year ended 31 December 2023 have yet to be
recorded.
2023 Depreciation-Building 180,000

31/12/2023
Accumulated Depreciation 180,000
2023 Depreciation-Plant and Equipment 223,000

31/12/2023
5. On 1 July 2023, the company acquired a motor vehicle amounting to RM150,000 by

cheque. The depreciation charge is 10% of the cost using a yearly basis.
2023 Motor Vehicle 150,000

1/7/2023
Bank 150,000

31/12/2023

MFRS 140
1. On 1 March 2023, The company converted a building that had a carrying value and fair
value amounted to 940,000 and 1,200,000 respectively.
2023 Investment Property 1,200,000

1/3/2023
Building 940,000
Asset Revaluation Reserve-Surplus 260,000
2. The investment property has a market value of the investment property building on 31
December 2023 is RM2,000,000
2023 Investment Property 800,000

31/12/2023
SOPL-Change In Fair Value 800,000

.
MFRS 108
1. In June 2021, BOD discovered that one of the company’s ex-employees, Johan
committed a fraud. Cash receipts from customers of RM455,000 were divested by him from
the previous years.
2023 Retained Earnings 455,000

31/12/2023
Trade Receivables 455,000
2. On 1st January 2023, there are changes in estimates have been made on the building.
One of the buildings was acquired on 1st January 2022 in the amount of RM1,000,000 with
depreciated 6% on cost on yearly basis. The company decided to change the building’s
depreciation method policy from the straight-line method to reducing balance at a
percentage of 20% on a yearly basis.

31/12/2023

MFRS 110
1. At the year end, one of its account receivables was declared bankrupt. The amount owed
is RM10,000 and it is expected that only 20% of the debt could be collected.
2023 Allowance For Impairment Trade 8,000

31/12/2023
Account Receivables 8,000
2023 Bank 2,000

31/12/2023
Trade Receivable 2,000
2. Some of the inventories amount RM100,000 were not accounted in the closing stock as at
31 December 2023
2023 Inventories 100,000

31/12/2023
Cost Of Good Sold 100,000
MFRS 137
1. On 1 June 2023, one of the employees of the company got injured from a faulty machine.
He sued the company for damages amount RM2,000,000. The legal adviser told the
company that there will be 60% chance that the company will held liable for
RM1,000,000.(Non-current liability)
2023 Operating Expenses 1,000,000

1/6/2023
Provision 1,000,000
MFRS 15
1. On 1 May 2023, The company enter into a contract to transfer a product C and product D
for RM200,000. The contract stated that payment of product D will not occur until they got
product C. The prices of product C are RM120,000 while product D are RM80,000. The
company deliver product D to them on 1 June 2023 and product C on 1 July 2023.
2023 Contract Asset 80,000

1/6/2023
Sales 80,000
2023 Trade Receivables 200,000

1/7/2023
Contract Asset 80,000
Sales 120,000
On 1 March 2023, the company enters into a contract to transfer a product to Gospel Bhd on
31 July 2023. It is agreed that Gospel will pay the full price of RM25,000 in advance on 1
April 2023. The contract is non-cancelable. Propel, however, pays on 15 April 2023, and
Harry delivers the product on 31 July 2023.
2023 Trade Receivables 25,000

1/4/2023
Contract Liability 25,000
2023 Bank 25,000

15/4/2023
Trade Receivables 25,000

2023 Contract Liability 25,000

31/7/2023
Sales Revenue 25,000
MFRS 9
1. The price of the item is RM 5000. Trade discount of 5% is received from MaMee Bhd. The
credit terms is 6/10, net 60. The purchase was made on 15 August 2023. On 21 August
2023 the company paid the full amount due to MaMee Bhd.
2023 Purchase 5,000

15/8/2023
Discount Received 250
Account Payable 4,750
2.Cruyff Sdn Bhd has purchase good on credit Rm3000 from Kroos bhd .He purchase it on
1/ 6 and then he paid fully on 7 / 6 . the terms on the purchase is 3/10, net 60 days”, a 3%
cash discount on the gross invoiced amount is given if the customer pays within 10 days.
Otherwise, the full gross invoiced amount is payable within 60 days.
2023 Account Payables 4,750

21/8/2023
Purchased Discount 285
Bank 4,465
MFRS 102
1. At the end of the year 2023, BOD had 1,000 units worth of sales in its inventory. These
items were purchased at RM100 per unit. The selling price is RM 120 per unit and the
estimated selling cost is RM 30 per unit.
2023 Cost Of Good Sold 1,000

31/7/2023
Inventories 1,000
Others
1. Directors also announce that there will be a final dividend for 10% preference shares
2023 Retained Earning 50,000

31/12/2023
Accrued Final Dividend-10% Preference Share 50,000
2. The interest rate for the loan from Mentari Bank is 5%. The interest has not yet been paid.
2023 Interest Expense 125,000

31/12/2023
Accrued Interest Expense 125,000
3. The tax expense estimated for the current year was RM3,750,000.
2023 Tax Expense 3,750,000

31/12/2023
Tax Payable 600,000
Tax Paid 3,150,000

Statement of Profit or Loss and Other Comprehensive Income
Aerial Asia Bhd

Statement of Profit or Loss and Other Comprehensive Income
For The Year Ended 31 December 2023
Particulars RM RM
Revenue (70,550,000+200,000+25,000+3,000-90) 70,777,910
(-)Cost Of Goods Sold
(35,240,000-100,000+5,000-250-285+10,000) -35,154,465
Gross Profit 35,623,445
(+)Other Income -
(-)Administrative expenses -12,795,000
(-)Selling and Distribution expenses -9,741,000 -22,536,000
Profit From Operation 13,087,445
Increase In Fair Value 800,000
Investment Income 325,000
(-)Finance Cost -125,000
Net Profit Before Tax 14,087,445
Taxation -3,750,000
Net Profit After Tax 10,337,445
Other Comprehensive Income
Surplus On Revaluation-Land 1,375,000
Surplus On Revaluation-Building 260,000
11,972,445
List Of Expenses
Administration Selling & Finance

Expense Distribution Expense
Expense
Balance b/d 1,0500,000 9,500,000
Audit Fees 55,000
Director Remuneration 700,000
Consultancy Fees 15,0000
Damages 1,000,000
Accrued interest paid 125,000
Loss on disposal 22,000
Depreciation 368,000 226,000
Motor vehicle 15,000
Balance c/d 12795000 9741000 125000

Statement Of Changes In Equity
Aerial Asia Bhd

Statement Of Changes In Equity For The Year Ended 31 December 2023
10%
Ordinary Preference Asset
Share Share Retained Revaluation
Capital Capital Profit Reserve
Balance b/d 12,000,000 4,000,000 11,457,500
Net Profit After Tax 10,337,445
Interim Dividend:-Preference Share (350,000)
Final Dividend (50,000)
Surplus On Revaluation-Land 1,375,000
Surplus On Revaluation-Building 260,000
Stolen Profit (455,000)
Balance c/d 12,000,000 4,000,000 20,939,945 1,635,000
Statement Of FInancial Position
Aerial Asia Bhd

Statement Of Financial Position For The Year Ended 31 December 2023
Particular RM RM
Non-Current Asset
Notes to PPE 21,784,000
Investment 6,637,500
Investment Property 2,000,000
30,421,500
Current Asset
Cash at bank
(4,550,000-2,000,000-30,000-150,000+2,000+25,000-4,465+2,910) 6,395,445
Trade Receivables (4,500,000+200,000-455,000-1,000) 3,493,000
Inventories (5,200,000+100,000-10,000) 5,290,000 15,178,445
TOTAL ASSETS 45,599,945
Financed by: Equity

Share Capital 16,000,000
Reserves 22,574,945
Current Liability
Accrued interest on loan 125,000
Tax payable 600,000
Trade payable 2,750,000
Accrued final dividend 50,000 3,525,000
Non-Current Liability
Long term loan 2,500,000
Damages 1,000,000 3,500,000
TOTAL LIABILITIES 45,599,945
Notes To The FInancial Statements
Notes To Property, Plant, and Equipment
Land Building Plant & Equipment Motor Vehicle

Cost (balance b/d) 16,625,000 5,000,000 4,500,000
(+) Acquisition 30,000 150,000
(-) Disposal -(2,000,000) (940,000) (22,000)
Revaluation Surplus 1,375,000
Deficit
(-) Elimination (60,000) (18,000)
Balance c/d 16,000,000 4,000,000 4,490,000 150,000
Depreciation
Balance b/d 300,000 2,025,000
Current year 368,000 226,000 15,000
(-) Elimination (60,000) (18,000)
Balance c/d 608,000 2,233,000 15,000
Carrying Value 16,000,000 3,392,000 2,257,000 135,000
Total = RM21,784,000
Building =
3,000,000 * 0.06 = 180,000
1,000,000 - 60,000 = 940,000 * 0.2 = 188,000
940,000 (IP)
Notes Disclosures
On 15 March 2023, part of the company’s building was damaged by an earthquake. The loss
was estimated at RM200,000

FAR270 Assignment AC1104E

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FAR270 Assignment AC1104E

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UNIVERSITI TEKNOLOGI MARA CAWANGAN PAHANG

SIR AZIZI @ HASHIM BIN HASHIM

HASRUL AZANI BIN KHAIRUL 2022857768

MUHAMMAD FARIS BIN MOHD ZUHAR 2022860506

SYED AKMAL BIN SYED MUSA 2022890328

AMIR HAZIQ BIN ASFAZIAN 2022871244

MUHAMMAD FADHLAN FIKRI BIN 2022486794

MFRS 116: PROPERTY, PLANT AND EQUIPMENT

5. On 1 July 2023, the company acquired a motor vehicle amounting to RM150,000 by

MFRS 140: Investment Property

MFRS 108: Accounting Treatment (Errors & Changes in Accounting Estimates)

MFRS 137: Provisions, Contingent Liabilities and Assets

MFRS 15: Revenue from contracts with customers

3 MFRS from the previous semester:

MFRS 102: Inventories

2023 Property, Plant and Equipment 1,375,000

Asset Revaluation Reserve- Surplus 1,375,000

2023 Bank 2,000,000

2023 Equipment 30,000

2023 Accumulated Depreciation 18,000

SOPL-Loss on Disposal 22,,000

2023 Depreciation 3,000

Accumulated Depreciation 3,,000

2023 Depreciation-Building 180,000

Accumulated Depreciation 180,000

2023 Depreciation-Plant and Equipment 223,000

Accumulated Depreciation 223,000

5. On 1 July 2023, the company acquired a motor vehicle amounting to RM150,000 by

2023 Motor Vehicle 150,000

2023 Depreciation 15,000

Accumulated Depreciation 15,000

2023 Investment Property 1,200,000

Asset Revaluation Reserve-Surplus 260,000

2023 Investment Property 800,000

SOPL-Change In Fair Value 800,000

2023 Retained Earnings 455,000

Trade Receivables 455,000

2023 Depreciation 188,000

Accumulated Depreciation 188,000

2023 Allowance For Impairment Trade 8,000

Account Receivables 8,000

2023 Bank 2,000

Trade Receivable 2,000

2023 Inventories 100,000

Cost Of Good Sold 100,000

2023 Operating Expenses 1,000,000

2023 Contract Asset 80,000

2023 Trade Receivables 200,000

Contract Asset 80,000

2023 Trade Receivables 25,000

Contract Liability 25,000

2023 Bank 25,000

Trade Receivables 25,000

2023 Contract Liability 25,000

Sales Revenue 25,000

2023 Purchase 5,000

Discount Received 250

Account Payable 4,750

2023 Account Payables 4,750

Purchased Discount 285

2023 Cost Of Good Sold 1,000

2023 Retained Earning 50,000

Accrued Final Dividend-10% Preference Share 50,000

2023 Interest Expense 125,000