Bauk Consumer Electrical Berhad Statement of Financial Position as at 31 December 2021.

Statement of Financial Position as at 31 December 2021.

PART B: PREPARATION OF FINANCIAL STATEMENTS FOR PUBLICATION PURPOSES 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 RM Credit RM 1,306,800 Sales Cost of sales Selling and distribution expenses Administrative expenses Interim Dividend Interest on loan Interest on debentures Tax paid Inventories as at 31 December 2021 (at cost) Bank Intangible asset Land Building (at cost) Machinery (at cost) Motor vehicle (at cost) Accumulated Depreciation (31 December 2020): Building Machinery Motor vehicles Receivables and Payables Allowance for Impairment of Trade Receivable Rental income 4.5% Bank loan 8% Debentures Retained profit as at 31 December 2020 Ordinary share capital 12% Preference shares capital General reserve Assets Revaluation Reserve as at 31 December 2020 562,200 54,800 100,260 64,800 43,750 16,440 70,400 352,700 424,248 326,250 1,800,000 880,000 386,000 1,223,700 211,750 440,000 87,320 656,198 131,050 15,430 57,200 1,300,000 411,000 422,300 1,200,000 330,000 60,000 100,000 6,517,298 6,517,298 1. 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 5% on cost; yearly basis. Machinery 5% on reducing balance; yearly basis. Motor vehicles 20% on reducing balance, monthly basis. Land 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. 5 GROUP PROJECT / FAR210 / JAN2022 b. 5% Throughout the year, the company had acquired the following assets: Assets Cost Financing (RM) method Purchase price 372,000 Motor vehicles Trade discount Road tax & Insurance 6.420 Credit basis Date of acquisition: Cost of painting company's logo 5,190 26 March 2021 Cost of maintenance 2.250 Purchase price 188,900 Machinery Import duties 2,340 Installation cost 6,210 Cash basis Date of acquisition: Transportation cost 3,980 4 July 2021 Training cost 15,870 The acquired machinery has an estimated residual value of RM15,800. On 29 September 2021, one of the vehicles costing RM88,700 involved in an accident and totally damaged. Company received RM22,000 from the insurance company as compensation. The vehicle was acquired on 11 July 2019. On 31 December 2021, the land was revalued to RM2,505,000 by a professional valuer. The management decided to incorporate the revalued amount in the company's book. c. d. 2. As at 31 December 2021 the following items remained unsold. Bauk Consumer Electrical Berhad is using group of similar items in valuing their inventory. Group Cost (RM) Net realizable value (RM) Coffee maker A001 A 29,450 24,750 A002 A 36,950 33,200 Dishwasher B001 B 64,100 62,400 B002 B 73,500 82,800 Handheld vacuum C001 40,850 38,500 C002 36,050 37,700 Air purifier D001 D 35,950 40,150 D002 D 35,850 30,250 i. Required: Describe whether the unsold product above are items of inventory in accordance with MFRS 102 inventories. (3 marks) ii. Determine the value of closing inventory as at 31 December 2021 by using the item by item basis. (Show all workings). (5 marks) (Total: 8 marks) 3 3. The company's aging analysis of receivables as at 31 December 2021 is as follows: No. of Days Past Due Not yet 1-30 31-60 61 - 90 Over 90 due days days days days % Uncollectible 1% 6% 10% 14% 100% Amount of receivables (RM) 57,800 54,500 66,200 23,500 9.750 Required: i. Advise on the amount to be disclosed in the Statement of Profit or Loss for the financial year end 31 December 2021 (show all workings). (4 marks) ii. Determine the net realizable value of trade receivables as at 31 December 2021. (2 marks) 4. i. ii. On 15 May 2021, Bauk Consumer Electrical Berhad sent a Purchase order to AM Supplier requesting for some raw materials. On 3 June 2021 company received the raw materials together with an invoice worth RM88,800. Additional costs incurred include delivery charges of RM1,900 and insurance on purchase of RM1,660. On 5 September 2021, company paid half of the outstanding debt to AM Supplier by cheque and received 10% discount given by the supplier. On 28 December 2021, company paid the remaining balance to AM Supplier by issuing a cheque. Required: Prepare the journal entry to record the payment made on 5 September 2021. (3 marks) Discuss whether Bauk Consumer Electrical Berhad can derecognize AM Supplier from company's book on 31 December 2021. (3 marks) (Total: 6 marks) Tax charge for the year is RM106,400. During the year, the director proposed the following: i. Final dividend for preference shares and final ordinary dividend of 8%. During the year, the company had declared and paid an interim dividend of RM19,800 to the preference shareholders. ii. Transfer to general reserves of RM33,800 The following transactions have not been considered: Half year debentures interest. ii. Auditor's fees of RM60,000. iii. Rental income RM28,600. Loan was taken on 2 March 2021. 5. 6. . 7. i. iv