Question
Montee Bhds list of balances extracted from the General Ledger from the current financial period. Debit Credit 25 million Ordinary Shares Capital 50,000,000 5 million
Montee Bhd’s list of balances extracted from the General Ledger from the current financial period.
Debit | Credit | |
25 million Ordinary Shares Capital | 50,000,000 | |
5 million 6% Preference Shares | 5,000,000 | |
6% Debenture | 5,700,000 | |
General Reserve | 8,300,000 | |
Retained Profits, beginning of year | 17,800,000 | |
Development Costs; qualify as intangible | 4,600,000 | |
Property [Land RM10 million; Building RM80 million] | 90,000,000 | |
Plant and Machinery | 3,097,000 | |
Accumulated Depreciation, beginning of year | ||
Buildings | 10,500,000 | |
Plant and machinery | 1,350,960 | |
Account Receivable and Account Payable | 1,070,000 | 1,553,000 |
Allowance for Doubtful Debt | 21,400 | |
Quoted Investment – 2 million ordinary shares of Saras Bhd | 2,640,000 | |
Sales | 97,000,000 | |
Sales return and allowance | 25,600 | |
Purchase return and allowance | 18,200 | |
Purchases | 38,200,500 | |
Inventories, beginning of year | 12,000,000 | |
Bank | 32,500,120 | |
Tax Paid | 11,937,160 | |
Interim Preference Dividend paid | 100,000 | |
Insurance | 54,000 | |
Advertising and Promotional Expenses | 225,000 | |
Salesmen's Commission | 150,000 | |
Directors' Remuneration | 450,000 | |
Auditors Fee | 23,600 | |
Income From Investment – Dividend from Saras Bhd | 264,000 | |
Office Salaries | 560,000 | |
Utilities Expenses | 48,000 | |
Rentals | 15,800 | 189,220 |
Additional information: | |
Financial accounting period ended | 30/9/2019 |
Ending Inventory was valued at | 17 million |
Tax Expense assessed | RM13 million |
During the year a disposal of plant with a carrying value of RM150,000 (original cost of RM220,000). No adjustment has been made. | Gain RM3k |
The company policy on depreciation is based on annual basis and the rates are as follows: | |
Building; straight line 5% | |
Plant and Machinery; reducing balance 20% | |
The 6% debenture was issued at 1 January 2019 at discount of 5%. | |
A transfer was made to the Retained Profit | 60k |
An advance rental of building amounting was received. This represents rental for the first 2 months of the next year | RM4k |
The allowance for doubtful debt was maintained at …... | 1.80% |
The final dividend was proposed by the board of directors for the remaining preference shares dividend | |
Proposed final dividend for the ordinary shares. All the new shares issued during the year are not entitled for the final dividend. | 6 sen |
Transaction not yet recorded | Offered 3 million 6% preference shares at RM2.50 per share; these were oversubscribed by 500,000 shares |
Answer the following questions:
a. Prepare the adjusting journal entries and update the effected accounts
b. Prepare the statement of profit or loss for the internal purpose; showing a clear separation of cost by function.
c. Based on item (a) prepare the financial statement suitable for publication in according with the relevant MFRSs and Companies Act 2016.
Note1: Statement of cash flows is NOT required
Note2: Working for the classification of costs is NOT required
d. Prepare the relevant notes based on the availability of information provided (at least 5 notes)
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