INDEX NO: BMFM 33129 Question 4 INDEX NO: BMFM 33129 Cash Allowance for doubtful debts 1.1.2020 358 40 8,615 8,615 Wish Berhad was incorporated with an authorized share capital of 2,000,000 ordinary shares of RM0.70 each and 1,000,000 8% preference shares of RM1.00 each. The following balances were extracted from the books of the company as at 31" December 2020. Additional information: RM000 The sales are inclusive of RM89,000 credit sales which was only delivered to the customer in January 2021 upon the customer's request. The sale took place on 31" December 2020. 2. RM1000 700 400 350 500 100 470 Salesmen's salaries is inclusive of auditors remuneration of RM7,000 3. 1,950 820 370 Depreciation on the company's non-current assets is calculated on a full year basis and it is to be provided as follow (a) Plant and machinery - 10% per year using straight-line method 6) Motor Vehicles - 15% reducing balance method () Building cost is RM950.000 - The estimated useful life of the building is 50 years and the straight line method is used to calculate depreciation. Advertising expenses include RM6,000 paid in respect of sales for the year ending 31 May 2021. Electricity expenses does not include an invoice of RM9,000 for electricity for the three months ending 31 December 2020, which was paid in January 2021. 4. 150 164 280 5. 10 265 190 6. 70 sen ordinary shares (fully paid) 5% debentures (secured) Retained earnings 1.1.2020 8% Preference shares General reserve 1.1.2020 Share Premium Land and Building 1.1.2020 (cost) Plant and machinery 1.1.2020 (cost) Motor Vehicle 1.1.2020 (cost) Accumulated depreciation: Buildings 1.1.2020 Plant and Machinery 1.1.2020 Motor Vehicles 1.1.2020 Carriage inwards Manufacturing direct labour. Manufacturing overhead Retum outwards Sales Dales Purchases of material Development cost Ordinary dividend paid Debenture interest Wages and salaries Electricity expenses Advertising expenses Carriage outwards Preference dividend Deferred tax Salesmen's salaries Retum inwards Distribution costs Trade account receivable Trade accounts payable Directors remuneration 76 5,089 2,000 300 The management wish to provide for: Debenture interest due Preference dividend due A transfer to general reserve of RM20,000 Auditors remuneration of RM20,000 Allowance for doubtful debts is to be provided at 5% of net trade receivables. The development cost is to be written off because the company failed to get license from the government and the ingredients used were not approved by the ministry of health 7. 10 254 31 213 125 25 The current income tax is estimated at RM60,000 and it is due for payment on 31" July 2021. 8. Deferred tax is to be decreased to RM80,000. 85 9. 100,000 ordinary shares were issued and recorded 1" October 2020 for RM0.90 each 10. The directors declared a further dividend of RM0.06 per share at the end of the year. 400 57 340 652 11. Inventory as at 31" December 2020 was RM200,000. 211 220 INDEX NO: BMFM 33129 In respect of the year ended 31 December 2020, prepare: (a) The statement of comprehensive income. [13 Marks] (b) The statement of financial position as at 31 December 2020. [11 Marks] The statement of movement of property, plant and equipment and statement of changes in equity [6 Marks] (d) Notes to the account 10 Marks] Total: [40 Marks] Show all your workings. -0000000- INDEX NO: BMFM 33129 Question 4 INDEX NO: BMFM 33129 Cash Allowance for doubtful debts 1.1.2020 358 40 8,615 8,615 Wish Berhad was incorporated with an authorized share capital of 2,000,000 ordinary shares of RM0.70 each and 1,000,000 8% preference shares of RM1.00 each. The following balances were extracted from the books of the company as at 31" December 2020. Additional information: RM000 The sales are inclusive of RM89,000 credit sales which was only delivered to the customer in January 2021 upon the customer's request. The sale took place on 31" December 2020. 2. RM1000 700 400 350 500 100 470 Salesmen's salaries is inclusive of auditors remuneration of RM7,000 3. 1,950 820 370 Depreciation on the company's non-current assets is calculated on a full year basis and it is to be provided as follow (a) Plant and machinery - 10% per year using straight-line method 6) Motor Vehicles - 15% reducing balance method () Building cost is RM950.000 - The estimated useful life of the building is 50 years and the straight line method is used to calculate depreciation. Advertising expenses include RM6,000 paid in respect of sales for the year ending 31 May 2021. Electricity expenses does not include an invoice of RM9,000 for electricity for the three months ending 31 December 2020, which was paid in January 2021. 4. 150 164 280 5. 10 265 190 6. 70 sen ordinary shares (fully paid) 5% debentures (secured) Retained earnings 1.1.2020 8% Preference shares General reserve 1.1.2020 Share Premium Land and Building 1.1.2020 (cost) Plant and machinery 1.1.2020 (cost) Motor Vehicle 1.1.2020 (cost) Accumulated depreciation: Buildings 1.1.2020 Plant and Machinery 1.1.2020 Motor Vehicles 1.1.2020 Carriage inwards Manufacturing direct labour. Manufacturing overhead Retum outwards Sales Dales Purchases of material Development cost Ordinary dividend paid Debenture interest Wages and salaries Electricity expenses Advertising expenses Carriage outwards Preference dividend Deferred tax Salesmen's salaries Retum inwards Distribution costs Trade account receivable Trade accounts payable Directors remuneration 76 5,089 2,000 300 The management wish to provide for: Debenture interest due Preference dividend due A transfer to general reserve of RM20,000 Auditors remuneration of RM20,000 Allowance for doubtful debts is to be provided at 5% of net trade receivables. The development cost is to be written off because the company failed to get license from the government and the ingredients used were not approved by the ministry of health 7. 10 254 31 213 125 25 The current income tax is estimated at RM60,000 and it is due for payment on 31" July 2021. 8. Deferred tax is to be decreased to RM80,000. 85 9. 100,000 ordinary shares were issued and recorded 1" October 2020 for RM0.90 each 10. The directors declared a further dividend of RM0.06 per share at the end of the year. 400 57 340 652 11. Inventory as at 31" December 2020 was RM200,000. 211 220 INDEX NO: BMFM 33129 In respect of the year ended 31 December 2020, prepare: (a) The statement of comprehensive income. [13 Marks] (b) The statement of financial position as at 31 December 2020. [11 Marks] The statement of movement of property, plant and equipment and statement of changes in equity [6 Marks] (d) Notes to the account 10 Marks] Total: [40 Marks] Show all your workings. -0000000