JULY 2023 (Q1)

SOLUTION 1

a) Harxurn Bhd
Statement of Profit or Loss for the Year Ended 31 December 2022

Note (RM)
Revenues (14,270,050+50k) 14,320,050
Cost of sales (4,550,000)
Gross profit 9,770,050
Increase in FV of IP (350k-300k) 50,000
Gain on disposal – land (2,520k-2500k) 20,000
Investment income 134,660
Administrative costs W1 (2,611,000)
Selling and distribution costs (674,000)
Finance costs (3%x650kx4/12) (6,500)
Profit before taxation 6,683,210
Income tax expense (500,000)
Profit for the year 6,183,210

Other comprehensive income

Surplus on revaluation – land 10,000
Total comprehensive income for the year 6,193,210

Administrative
expenses
W1 RM
As per trial balance 1,747,000
Depreciation - machinery (W2) (450k+372k) 822,000
Depreciation – building(2%x1,450k) 29,000
Loss in disposal old component 13,000
machine
2,611,000

W2
Cost 9,000,000
(-) acc. Depreciation
2.6m + depreciation current year (9m/10x6/12) (3,050,000)
CA as at 30/6/2022 5,950,000
(-) CA old component
20k – (20k/10x3.5) (13,000)
(+) new component 15,000
New CA 5,952,000
Depreciation for the year (6/12)
 (5,952k/8x6/12) (372,000)
CA as at 31/12/2022 5,580,000

b)

Hurxurn Bhd
Statement of Changes in Equity for the year ended
31 December 2022

Ordinary Retained
Shares Earnings ARR
Balance, 1/1/2022 5,600,000 1,072,070
Retrospective adjustment 15,000
Restated balance 1,087,070
Profit for the year 6,183,210
Revaluation -land 10,000
Disposal of land 10,000 (10,000)
Balance, 31/12/2022 5,600,000 7,720,280 10,000

Hurxurn Bhd

c) Statement of Financial Position as at 31 December 2022

Note (RM'000) (RM'000)
Non-current assets
Property, plant and equipment 1 6,801,000
Investment Property (1,320k+50k) 1,370,000
Long-term Investments 530,000
8,701,000
Current assets
Tax recoverable (550k-500k) 50,000
Inventories 1,770,000
Cash and bank (905,550+50k+2,520k-15k) 3,460,550
Accounts receivable (1,234.5k-11,050) 1,223,450
Less: AFITR (157,340-11,050) (146,290) 1,077,160
6,357,710

15,058,710
Financed by:
Share capital 5,600,000
Reserves 7,280,280
 13,340,680
Non-current Liabilities
Loan from Perdana Bank 650,000

Current liabilities
Accounts payable (1,540,430-15k) 1,525,430
Accrued interest on loan (3%x650kx4/12)-3.5k 3,000
15,058,710

NOTES TO THE FINANCIAL STATEMENTS

i.Property, plant & equipment

Plant and
Freehold Building machinery
land Total
Valuation / Cost (RM) (RM) (RM) (RM)
Bal b/d 2,490,000 1,450,000 9,000,000
Surplus on revaluation 10,000
Disposal (2,500,000) (20,000)
Acquisition 15,000
0 1,450,000 8,995,000

Acc. Depreciation
Bal b/d - 200,000 2,600,000
Disposal (7,000)
Charge for the year - 29,000of 822,000of
0 229,000 3,415,000

Carrying amount 0 1,221,000 5,580,000 6,801,000

ii. Contingent liability

On 1 July 2022, one of the company’s customers sued the company due to unfunctional
chip amounting RM13,000. However, the legal advisor is in the opinion that the company
will not liable because of the customer was incorrectly installed the chip and not following
the installation guideline.