Question 1 and Question 2 :)

PART B QUESTION I Simba Bhd. operates in Petaling Jaya. The following information is the company's unadjusted year-end trial balance dated December 31st, 2018 Simba Bhd. Unadjusted Trial Balance as at 31 December 2018 RM 98,000 RM Accounts receivable Fr Uncamed rent revenue Se Accounts payable Administrative expense ee Cash e Cost of goods sold oeIncome tax expense eeLong-term investment Inventory Freehold land drPlant and machinery Accumulated depreciaticen: Plant and machinery Ordinary share capital Bank loan Prepayment ce Retained earnings (January 1, 2018) 7Rent revenue Sales revenue Other operating expense , Supplies 5,250 71,000 87,500 36,300 220,260 23.000 30,000 75,000 250,000 100,700 20,140 100,000 50,000 4,830 132.270 9,000 610,000 70,000 2070 997,660 997.660 At the end of the accounting period, the following transactions were unrecorded and needed to be adjusted in the ledger accounts: 1. The freehold land is to be revalued to RM370,000. 2. The bank loan of RM50,000 was obtained on I June 2018. The 6 % of interest expense on the bank loan is accrued at year end. 3. Depreciation on plant and machinery has yet to be charged. Simba Bhd. charges depreciation at a rate of 20% per year on book value. 4. On February 1, 2018, Simba Bhd. purchased an insurance policy that covers 15 months. It is recorded as prepayment. Insurance expense is treated as an administrative expense. 5. The unearmed rent revenue account recorded four months revenue collected in advance on November 1, 2018. The rent revenue is eamed evenly over the four months, 6. Dividend declared and paid was RM5,000. Page 5 of 7 9. Siba hd received an invoice mounting to RMI.300 for December's online advertising. The company will not pay the billinvoice until Janoary 2019. The expense is treated as other operating expense Required a Journalise transactions 1 to 7 above b Prepare a Statement of Profit and Loss and Other Comprchensive Income and a Statement of Changes in Equity for the year ended December 31, 2018, and a Statement of Financial Pasition as at that date. (Total: 25 marks) QUESTION 2 You are the accountant of ANZ Consulting Services and your client LYT Bhd. has recently seek your advice on the following transaction invollving the company's Property, Plant and Equipment On I January 2014, the company bought a plant costing RM600,000 whose economic life is estimated to be 10 years with no scrap value. The plant is to be depreciated using a straight- tine method and the depreciation is made on a full year basis. On 1 January 2018, the following costs on the plant were incurred: RM. Purchase of spare parts 40,000 . Repairs and annual overhaul of plant b. 80,000 Modification to the plant that results in lower operating costs 100,000 C. Replacement of a major part of the plant so as to improve the efficiency of the plant. d. 200,000 (The cost of the part of the plant being replaced and disposed was RM60,000 and the depreciation expense that was previously provided for this part of the plant was RM24,000) Required: 1. Briefly explain how each of the additional costs (a) to (d) incurred by the company should be treated? (8 marks) 2. Compute the depreciation charge for the year 2018 AND report the Cost; Accumulated Depreciation and Net book value (NBV) of the plant as in the Statement of Financial Position as at 31 December 2018 (4 marks) Ace DE PRCTN CUST 3. Suppose LYT Bhd. revalued the plant in the year 2019 to RM900,000 and the company has never revalued any of its non-current assets before. Show the ledger accounts as to (3 marks) how to record such transaction. (Total: 15 marks) End of Questions