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PLEASE answer this as soon as possible. The trial balance of Wear Smart Bhd., a fabric manufacturer, as at 30 September 2019 is given below.

image text in transcribedimage text in transcribedPLEASE answer this as soon as possible.

The trial balance of Wear Smart Bhd., a fabric manufacturer, as at 30 September 2019 is given below. Trial Balance as at 30 September 2019 Dr Cr RM1000 RM'000 Administrative expenses 16,000 Bank 1,000 Capitalised development expenditure at 1 Oct 2018 15,000 Cost of sales 143,000 Development expenditure - accumulated amortisation at 1 Oct 2018 4,500 Distribution costs 10,800 Interest on bank borrowings 200 Inventory at 30 September 2019 15,000 Property at valuation 1 Oct 2018 37,500 Property revaluation reserve 7,500 Ordinary dividends paid 5,000 Ordinary shares 52,500 Plant and equipment - accumulated depreciation at 1 Oct 2018 21,000 Plant and equipment at cost 60,000 Research and development costs 6,000 Retained earnings at 1 Oct 2018 22,000 Revenue 215,000 Trade payables 17,000 Trade receivables 30,000 339,500 339,500 Additional information: (1) Non-current tangible assets: The property has a remaining life of 25 years at 1 Oct 2018. The company's policy is to revalue its property at each year-end and at 30 September 2019 it was valued at RM33 million. Ignore deferred tax on the revaluation. Plant and equipment are depreciated at 20% per annum using the straight-line method. Depreciation of non-current assets is charged to cost of sales. (2) Non-current intangible assets: In addition to the capitalised development expenditure of RM15 million, further research and development costs were incurred on a new project which commenced on 1 Oct 2018 and incurred a cost of RM600,000 at the research stage. The research stage of the new project was completed in December 2018. From that date the project incurred development costs of RM600,000 per month. On 1 April 2019, the directors became confident that the project would be successful and yield a profit well in excess of its costs. The project is still in development at 30 September 2019. Capitalised development expenditure is amortised at 20% per annum using the straight-line method. Amortisation of non-current intangible assets and all research and development costs are charged to cost of sales. (3) The accountant reviewed the trade receivables of RM30 million and decided that the allowance for doubtful debts should be adjusted to 2% of the remaining trade receivables. Allowance for doubtful debts is charged to administrative expenses. (4) The directors had estimated the provision for income tax for the year at RM4 million. Provision for taxation in 2018 was under estimated by RM200,000. Wear Smart Bhd has not recognised this amount in 2019. Required: Prepare the following statements for Wear Smart Bhd. in accordance with the requirements of IAS 1/ MERS 101. You are required to show all relevant workings. (a) A statement of Profit or Loss and Other Comprehensive Income for the year ended 30 September 2019. (9 marks) (b) A Statement of Changes in Equity for the year to 30 September 2019. (3 marks) (c) A Statement of Financial Position as at 30 September 2019. (13 marks) [Total: 25 marks]

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