COURSE: DIPLOMA IN ACCOUNTING

SUBJECT: FINANCAIL ACCOUNTING & REPORTING 4

I NEED ANSWER FOR QUESTION 1 & 2

Question 1 Amah Plantation Bhd owns an oil palm plantation in Kedah. As at the end of the reporting period, the fair value of the plantation including the land was RM30 million. The fair value of the land was RM13 million. Required: Explain how Amah Plantation Bhd accounts for its oil palm trees. Question 2 Cottage Farm Bhd purchased 1,000 sheep at a cost RM700,000 on 1 January 2015. It is estimated that the fair value of sheep in the market on 31 December 2015 is RM730,000. RM5,000 will incurred for commission to dealers if they decide to sell the sheep. Required: i. Calculate the relevant amount to be presented in the Statement of Financial Position as at 31 December 2015. ii. Prepare the relevant journal entry from the above situation