Question
Bauk Consumer Electrical Berhad manufactures a variety of home electrical equipment in Malaysia. The following is the Trial Balance of the company as at
Bauk Consumer Electrical Berhad manufactures a variety of home electrical equipment in Malaysia. The following is the Trial Balance of the company as at 31 December 2021: Debit Credit RM RM Sales 1,306,800 Cost of sales 562,200 Selling and distribution expenses 54,800 Administrative expenses 100,260 Interim Dividend 64,800 Interest on loan 43,750 Interest on debentures 16,440 Tax paid 70,400 Inventories as at 31 December 2021 (at cost) 352,700 Bank 424,248 Intangible asset 326,250 Land 1,800,000 Building (at cost) 880,000 Machinery (at cost) 386,000 Motor vehicle (at cost) 1,223,700 Accumulated Depreciation (31 December 2020): Building 440,000 Machinery 87,320 Motor vehicles 656,198 Receivables and Payables 211,750 131,050 Allowance for Impairment of Trade Receivable 15,430 Rental income 57,200 4.5% Bank loan 8% Debentures Retained profit as at 31 December 2020 Ordinary share capital 1,300,000 411,000 422,300 1,200,000 12% Preference shares capital General reserve Assets Revaluation Reserve as at 31 December 2020 330,000 60,000 100,000 6,517,298 6,517,298 1. You are given the following information: The information related to the property, plant and equipment of the company is as follows: a. The depreciation policy of the company is as follows: Building Machinery Motor vehicles Land 5% on cost; yearly basis. 5% on reducing balance; yearly basis. 20% on reducing balance, monthly basis. is not depreciated. Note: Depreciation on motor vehicles is treated as selling and distribution expenses while depreciation for other property, plant and equipment to be treated as administrative expenses.
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