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Please show all the workings. Dolly Bhd is a manufacturing company producing paper containers. The following is the trial balance as at 31 December 2017
Please show all the workings.
Dolly Bhd is a manufacturing company producing paper containers. The following is the trial balance as at 31 December 2017 Debit RM'000 Credit RM'000 202,000 Revenue Cost of Sale Distribution Costs Administrative expenses Finance Costs Inventory at 31 December 2017 Investment income Trade receivables Trade payables Motor vehicles at cost Freehold property at valuation Plant at cost Machinery at cost Capitalised development expenditure at 1 January 2017 Accumulated depreciation and amortisation at 1 January 2017 89,200 16,400 14,500 400 22,900 4,200 32,000 35,000 70,000 100,000 130,000 40,000 20,000 Motor vehicles Freehold property Plant Machinery Capitalised development expenditure 14,000 20,000 34,000 6,000 6,000 Investments at fair value at 1 January 2017 Ordinary shares capital 8% Redeemable preference share Retained earnings at 1 January 2017 Asset revaluation reserves Research and development expenditure Deferred tax Bank overdraft 12,900 155,000 10,000 25,500 700 8,600 14,000 30,500 556,900 556,900 The following information is relevant i. The freehold property was revalued at RM80 million on 31 December 2017 The estimated remaining life of the property on 1 January 2017 was 20 years ii. It is the policy of the company to use the straight-line method to depreciate all property, plant and machinery based on period of ownership. The estimated life of all plant, machinery and motor vehicles is 10 years. The depreciation charge is treated as administration expense ii. Research and development costs were incurred for a new project on 1 January 2017.The company has incurred RM1.4 million on research activities from that date until 30 June 2017. The development costs of RM1.2 million per month were incurred from 1 July 2017 until the end of the accounting year 31December 2017. This project is expected to be successful and will generate income to the company. All development costs are Capitalised and amortised at 10% per annum using straight line method and charged to cost of sales. The research and development costs incurred during the year were paid but not yet appropriately accounted for in the financial statements. iv The estimated tax payable for the year was RM17.1 million. This does not include a decrease of the company's taxable temporary difference during the year of RM4.8 million. The income tax rate for 2015 is 25% The finance cost of RM400,000 represents amount paid to the holders of the redeemable preference share capital. V. Required Prepare the following statements in a form suitable for publication and in compliance with MFRS 101 (2009) Presentation of Financial Statements a The Statement of Profit or Loss and Other Comprehensive Income for the (18 marks) year ended 31 December 2017 b) The Statement of Financial Position as at 31 December 2017. (12 marks)Step by Step Solution
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