Cash RM 20860

Question 2 (Soalan 21 Emiria makes components for the motor industry, buying in plastic and metal raw materials from the UK and overseas. Her factory contains mostly quite old machinery, some of which is fully depreciated. She incurs relatively high labour and maintenance and repair costs. Emiria would like to borrow more money from the bank to invest in new plant and machinery so as to bring the production processes up to date and reduce labour costs. The bank manager has told her, however, that she must take steps to reduce her overdraft before the bank will consider lending any more money. The following is Emiria's list of balances at 31 December 2016 together with some notes that will help in preparing the accounts BFT106) RM 13,850 93,450 150,000 9,000 87,482 10,000 28,411 6,769 Accounts Land Plant and machinery (At cost) Buildings (At cost) Accumulated depreciation at I January 2016: Buildings Accumulated depreciation at 1 January 2016: Plant and machinery Bank loans long term) Bank overdraft Rates and taxes Capital st 1 January 2016 Credito Debtors Direct labour costs Drawings Electricity Factory supervisor's salary Finished goods 1 January 2016 Finished goods 31 December 2016 Import duties on purchases of raw materials Purchases of raw materials Raw materials 1 January 2016 Raw materials at 1 December 2016 Sales Secretarial and clerical staff Sundry administration and selling expenses Work-in-progress 1 January 2016 Work-in-progress 1 December 2016 32.229 24,459 46.242 79,690 39.511 10.710 14,778 39,451 39.750 1,570 97,010 16,333 15,250 337,570 12.760 1,670 6,440 6,693 Note the following: Note adalah seperti berila The depreciation for plant and machinery for 2016 is RM3,130. Sulilah lol dan jentera bagla 2016 ialah RM3,130.) Depreciation is charged on the cost of buildings at 2% per annum on the straight line basis. The charge is split between the factory (80%) and the administration office (20%). Sun will die ke atas ko bangun pada dilal 2% lahus mengikut kaedah garis lurt Kos tersebut dipecahkan kepada kilang (8090) dan polabar pentadbiran (2010. Electricity expenses are to be allocated equally between factory and administrative office. (Belanja elektrik dibahagikan secara sama rata di antara kilang dan pejabat pentadbiran You are required to answer the following questions: [Anda dikehendak menjawab soalan-soalan berikut: (a) Prepare a Statement of Cost of Production for Emiria for the year ended 31 December 2016. {Sediakan Penyata Kos Pengeluaran bagi Emiria bagi tahun berakhir 31 Disember 2016.) (8 Marks / Markah) (6) Prepare a Statement of Comprehensive Income and Statement of Financial Position for the year ended 31 December 2016. [Sediakan Pentyata Pendapatan Komprehensif dan Penyata Kedudukan Kewangan bagi tahun berakhir 31 Disember 2016.) (12 Marks / Markah) (c) Advise Emiria on how she can help to reduce her overdraft and borrow more money for investment in new plant and machinery. [Nasihatkan Emiria bagaimana beliau boleh membantu untuk mengurangkan overdraf beliau dan meminjam lebih banyak wang untuk pelaburan dalam kilang dan jentera baru.] (5 Marks / Markah)