You are presented with the following trial balance of Golden City Bhd as at 31 December...
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You are presented with the following trial balance of Golden City Bhd as at 31 December 2020: Debit RM'000 Credit RM'000 Intangible assets 50 Plant at cost 100 Plant, accumulated depreciation, at 1 January 2020 Building at cost 20 200 Building, accumulated depreciation, at 1 January 2020 30 Land at cost 350 Bank balance 52 Retained earnings at 1 January 2016 420 5% Loan notes 100 Loan note interest 5 Dividend paid 30 Revenue Returns inwards 5,000 300 Wages and salaries Insurance Energy expenses Inventory at 1 January 2020 1,200 60 320 1.000 Administrative expenses Allowance for receivables, at 31 December 2020 Purchases 250 25 2,300 Discount received Trade payables 38 800 Trade receivables Directors' remuneration RM1 Ordinary shares Share premium account 260 700 400 240 7.125 7.125 Further information relating to Golden City Bhd: 1. Closing inventory has been valued at the cost of RM798,000. 2. Energy expenses of RM30,000 for December 2020 have not been invoiced or recorded. 3. Insurance expenses include RM10,000 for January and February 2021. 4. Depreciation is to be charged as follows: (1) Plant at 25% of written down value, allocated to cost of sales. (ii) Buildings are depreciated at 5% per annum on their original cost, allocated 50% to cost of sales, 30% to distribution costs and 20% to administrative expenses. 5. Based on past experience the allowance for receivables is to be adjusted to 5% of trade receivables and allocated to administrative expenses. 6. Land was revalued at 31 December 2020 to RM500,000. 7. The intangible assets were purchased on 1 January 2020 and have a useful life of five year. Amortisation is to be charged to administrative expenses. 8. Tax of RM40.000 is to be provided for the year. 9. The expenses listed below should be apportioned as follows: Discount received Insurance Energy expenses Wages and salary Directors' remuneration Required: Cost of Distribution Administrative Sales Costs Expenses 0% 0% 100% 0% 50% 50% 50% 20% 30% 40% 35% 25% 0% 0% 100% Prepare the following statements, FOR EXTERNAL USE in accordance with MFRS 101 Presentation of Financial Statements: (a) a comprehensive income statement for the year ended 31 December 2020 (b) a statement of financial position as at 31 December 2020 (20 marks) (20 marks) You are presented with the following trial balance of Golden City Bhd as at 31 December 2020: Debit RM'000 Credit RM'000 Intangible assets 50 Plant at cost 100 Plant, accumulated depreciation, at 1 January 2020 Building at cost 20 200 Building, accumulated depreciation, at 1 January 2020 30 Land at cost 350 Bank balance 52 Retained earnings at 1 January 2016 420 5% Loan notes 100 Loan note interest 5 Dividend paid 30 Revenue Returns inwards 5,000 300 Wages and salaries Insurance Energy expenses Inventory at 1 January 2020 1,200 60 320 1.000 Administrative expenses Allowance for receivables, at 31 December 2020 Purchases 250 25 2,300 Discount received Trade payables 38 800 Trade receivables Directors' remuneration RM1 Ordinary shares Share premium account 260 700 400 240 7.125 7.125 Further information relating to Golden City Bhd: 1. Closing inventory has been valued at the cost of RM798,000. 2. Energy expenses of RM30,000 for December 2020 have not been invoiced or recorded. 3. Insurance expenses include RM10,000 for January and February 2021. 4. Depreciation is to be charged as follows: (1) Plant at 25% of written down value, allocated to cost of sales. (ii) Buildings are depreciated at 5% per annum on their original cost, allocated 50% to cost of sales, 30% to distribution costs and 20% to administrative expenses. 5. Based on past experience the allowance for receivables is to be adjusted to 5% of trade receivables and allocated to administrative expenses. 6. Land was revalued at 31 December 2020 to RM500,000. 7. The intangible assets were purchased on 1 January 2020 and have a useful life of five year. Amortisation is to be charged to administrative expenses. 8. Tax of RM40.000 is to be provided for the year. 9. The expenses listed below should be apportioned as follows: Discount received Insurance Energy expenses Wages and salary Directors' remuneration Required: Cost of Distribution Administrative Sales Costs Expenses 0% 0% 100% 0% 50% 50% 50% 20% 30% 40% 35% 25% 0% 0% 100% Prepare the following statements, FOR EXTERNAL USE in accordance with MFRS 101 Presentation of Financial Statements: (a) a comprehensive income statement for the year ended 31 December 2020 (b) a statement of financial position as at 31 December 2020 (20 marks) (20 marks)
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Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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