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SECTION A: STRUCTURED QUESTIONS (100 MARKS) ANSWER ALL QUESTIONS QUESTION 1 (35 MARKS) The authorized capital of Manis Madu Berhad consists of 1,500,000 Ordinary Shares of RM1 each and 600,000 10% Preference Shares of RM1 each. Given below the trial balance of the company for the year ended 31 August 2015. Debit (RM Credit (RM 660,000 Ordinary Share Capital % Preference Share Capital General reserve 325,000 63,600 200,100 Retained Profit (I July 2014) 10% Debenture 400,000 Frechold land (at cost) Building (carrying value as at I July 2014) Delivery van (carrying value as at 1 July 2014) Office equipments (carrying value as at I July 2014) Investments in equity shares of listed companies Inventory as at 31 August 2015 Bank 700,000 320,000 42,000 60,000 500,000 60,000 149,900 Sales Cost of sales 1,440,600 Dividend income Discount received Directors' remuneration Auditors' fees 4,000 72,000 28,000 78,000 13,000 160,000 Selling and distribution expenses Interim preference dividend paid Administrative expenses Advertising expenses Tax paid for year 2015 Tax under-provided in year 2014 Debenture interest paid Trade receivables and trade payables 38,000 64,000 7,000 20,000 3.322.800 3,22280 Additional infermation: I. The net realizable value of closing inventory as at 31 August 2015 was RM58,000. 2. Included in the amount of administrative expenses is the amoant of building insurance for September to Decernber 2015 of RM4,000 Freehold land was revalued to RM780,000 by an independent valuer and this is to be taken into account 3. CONFIDENTIAL 4. Depreciations for the year have not been provided for by the conmpany The rates are as follows Rate Method 5% Straight line 10% Reducing balance 5% Reducing balance Building (cost: RM352,000) Delivery Van (cost: RM50,400) Office Equipment (cost: RM100,000) About 70% depreciation expenses of building are allocated to administrative er and the balance to cost of sales. Depreciation expenses of delivery van and office equipment is fully allocated to selling and distribution expenses and administrative expenses respectively 5. Provision is required for the following items: Accrued auditors' fees RM2,000 RM36,500 RM20,000 RM30,000 Transfer from retained profit to general reserve Accrued debentures interest Bad debts The directors had declared final dividend for the preference shares and final dividend of ordinary shares at 15 cent per share. The announcement was made before financial year-end. 6. 7. At financial year-end the fair valsn of investment in equity shares was RM600,000 & Tax expense for the year was estimated to be RM82,000. Required a. Prepare a Statement of Comprehensive Income of Manis Madu Berhad for the year ended 31 August 2015 (15 marks) b. Prepare a Statement of Changes in Equity of Manis Madu Berhad for the year ended 31 August 2015. /o marks) c. Prepare a Statement of Financial Position of Manis Madu Berhad as at 31 August 2015. (8 marks) d. Prepare notes to the followings i. Earnings per share i. Property, plant and equipment 6 marks) CONFIDENTIAL SECTION A: STRUCTURED QUESTIONS (100 MARKS) ANSWER ALL QUESTIONS QUESTION 1 (35 MARKS) The authorized capital of Manis Madu Berhad consists of 1,500,000 Ordinary Shares of RM1 each and 600,000 10% Preference Shares of RM1 each. Given below the trial balance of the company for the year ended 31 August 2015. Debit (RM Credit (RM 660,000 Ordinary Share Capital % Preference Share Capital General reserve 325,000 63,600 200,100 Retained Profit (I July 2014) 10% Debenture 400,000 Frechold land (at cost) Building (carrying value as at I July 2014) Delivery van (carrying value as at 1 July 2014) Office equipments (carrying value as at I July 2014) Investments in equity shares of listed companies Inventory as at 31 August 2015 Bank 700,000 320,000 42,000 60,000 500,000 60,000 149,900 Sales Cost of sales 1,440,600 Dividend income Discount received Directors' remuneration Auditors' fees 4,000 72,000 28,000 78,000 13,000 160,000 Selling and distribution expenses Interim preference dividend paid Administrative expenses Advertising expenses Tax paid for year 2015 Tax under-provided in year 2014 Debenture interest paid Trade receivables and trade payables 38,000 64,000 7,000 20,000 3.322.800 3,22280 Additional infermation: I. The net realizable value of closing inventory as at 31 August 2015 was RM58,000. 2. Included in the amount of administrative expenses is the amoant of building insurance for September to Decernber 2015 of RM4,000 Freehold land was revalued to RM780,000 by an independent valuer and this is to be taken into account 3. CONFIDENTIAL 4. Depreciations for the year have not been provided for by the conmpany The rates are as follows Rate Method 5% Straight line 10% Reducing balance 5% Reducing balance Building (cost: RM352,000) Delivery Van (cost: RM50,400) Office Equipment (cost: RM100,000) About 70% depreciation expenses of building are allocated to administrative er and the balance to cost of sales. Depreciation expenses of delivery van and office equipment is fully allocated to selling and distribution expenses and administrative expenses respectively 5. Provision is required for the following items: Accrued auditors' fees RM2,000 RM36,500 RM20,000 RM30,000 Transfer from retained profit to general reserve Accrued debentures interest Bad debts The directors had declared final dividend for the preference shares and final dividend of ordinary shares at 15 cent per share. The announcement was made before financial year-end. 6. 7. At financial year-end the fair valsn of investment in equity shares was RM600,000 & Tax expense for the year was estimated to be RM82,000. Required a. Prepare a Statement of Comprehensive Income of Manis Madu Berhad for the year ended 31 August 2015 (15 marks) b. Prepare a Statement of Changes in Equity of Manis Madu Berhad for the year ended 31 August 2015. /o marks) c. Prepare a Statement of Financial Position of Manis Madu Berhad as at 31 August 2015. (8 marks) d. Prepare notes to the followings i. Earnings per share i. Property, plant and equipment 6 marks) CONFIDENTIAL