QUESTION 1 Below are the Statements of Profit or Loss and Statements of Changes in Equity of Jupiter Bhd and Mars Bhd for the year ended 31 December 2018. Statement of Profit or Loss for the year ended 31 December 2018 Jupiter Bhd Mars Bhd RM RM Sales 4,750,000 3,790,000 Cost of sales (1,139,000) (277,300) Gross profit 3,611,000 3,512,700 Profit on sale of equipment - 8,000 Other Income 116,320 3,000 Selling expenses (150,000) (125,000) Administration expenses (100,000) (30,000) Finance cost (30,000) (20,000) Operating profit before tax 3,447,320 3,348,700 Taxation (295,000) (115,550) Profit the year 3,152,320 3,233,150 Statement of Changes in Equity for the year ended 31 December 2018 (extract) Jupiter Bhd Mars Bhd RM RM Retained profit brought forward 127,500 40,000 Profit for the year 3,152,320 3,233,150 Ordinary dividends (232,500) (137,600) Preference dividends (30,000) (24,000) Transfer to general reserves (50,000) - Retained profit carried forward 2,967,320 3,111,550 Additional Information: 1. The paid-up capital of both companies are as follows: Company Name Ordinary shares 6% Cumulative Preference shares RM RM Jupiter Bhd 2,000,000 500,000 Mars Bhd 800,000 400,000 2. Jupiter Bhd acquired 70% of the ordinary shares and 50% of the Preference Shares of Mars Bhd on 2 January 2018 for RM450,000 and RM200,000 respectively. 2 3. Sales of Jupiter Bhd include sales to Mars Bhd amounted to RM140,000. Jupiter Bhd sold the goods to Mars Bhd at cost plus of 25%. At the end of the year, RM60,000 of these goods remained unsold. 4. As at 31 December 2018, goodwill on consolidation was impaired by 20%. 5. During the year, Mars Bhd sold equipment to Jupiter Bhd at RM8,000 above it carrying value. Depreciation has been provided at 20% on carrying value on yearly basis. 6. Both companies have recorded the ordinary and preference dividends declared before the year ended 31 December 2018. However, Jupiter Bhd has only recorded ordinary dividend receivable from Mars Bhd. Required: a. Prepare the Consolidated Statement of Profit or Loss of Jupiter Bhd for the year ended 31 December 2018 (show all workings). b. Prepare the extract of the Statement of Changes in Equity of Jupiter Bhd for the year ended 31 December 2018 showing the retained profit and non-controlling interest column only. (20 marks) QUESTION 2 On 1 July 2017, Venus Bhd acquired 400,000 units ordinary shares, 5,000 6% cumulative preference shares and RM15,000 10% debentures of Mercury Bhd. On that date, the retained earnings of Mercury Bhd was RM100,000. The summarized statements of Profit or Loss and statements of changes in equity (extract) of Venus Bhd and Mercury Bhd for the year ended 30 June 2019 are as follows: Statements of Profit or Loss for the year ended 30 June 2019 Venus Bhd Mercury Bhd RM RM Revenue 1,526,700 876,800 Cost of sales (917,700) (679,400) Gross profit 609,000 197,400 Operating expenses (467,800) (97,200) Finance costs (22,000) (5,000) Investment income 98,000 - Profit before taxation 217,200 95,200 Income tax expense (42,500) (30,400) Profit for the year 174,700 64,800 3 Statements of Changes in Equity for the year ended 30 June 2019 (extract) Venus Bhd Mercury Bhd RM RM Retained profit brought forward 760,000 240,000 Profit for the year 174,700 64,800 Interim dividends - Ordinary (30,000) (6,000) - Preference (8,000) (3,000) Transfer to general reserve (20,000) (10,000) Retained profit carried forward 876,700 285,800 Additional information: 1. The issued share capital of Venus Bhd and Mercury Bhd were as follows: Company Name Ordinary shares 8% Cumulative Preference shares 6% Cumulative Preference shares 10% Debentures Units Units Units RM Venus Bhd 1,800,000 200,000 - - Mercury Bhd 500,000 - 100,000 50,000 2. Land and building of Mercury Bhd have the following value: Land Building RM RM Fair value as at 1 July 2017 470,000 452,000 Carrying value as at 30 June 2017 350,000 350,000 Remaining useful lives of the building on the date of acquisition was 20 years. Building is depreciated on straight line method over its useful lives, and to be charged on yearly basis. 3. Investment income of Venus Bhd includes profit from sale of equipment to Mercury Bhd for RM14,000 and dividends received from Mercury Bhd of RM6,300. On the date of disposal, the remaining useful lives of the equipment is 5 years. Depreciation of the equipment is calculated on straight line method over its useful lives, and to be charged on yearly basis. 4. Finance costs of Mercury Bhd are all debenture interest expense. Venus Bhd has not yet recorded the debenture interest receivable from Mercury Bhd. 5. Mercury Bhd sold goods to Venus Bhd at a mark-up of 25% on cost. During the year, Mercury Bhd recorded sales of RM49,500 to Venus Bhd. As at the year-end, Venus Bhd still held one third (1/3) of these goods. 6. The directors of Venus Bhd and Mercury Bhd have declared the final preference dividend on 20 June 2019 but not yet recorded by both companies. 7. Goodwill on consolidation was impaired by RM10,000 as at 30 June 2019. 4 Required: a. Consolidated Statement of Profit or Loss of Venus Bhd and its subsidiary Mercury Bhd for the year ended 30 June 2019. b. Consolidated Statement of Changes in Equity (extract) for the year ended 30 June 2019 showing the group retained profit and non-controlling interest only.

QUESTION 1 Below are the Statements of Profit or loss and Statements of Changes In Equity of Jupiter Bhd and Mars Bhd for the year ended 31 December 2016. statement of Pront or Loss for the year ended 31 December 2018 Jupiter Bhd RM 4,750,000 (1,139,000 3,611,000 Sales Cost of sales Gross profit Profit on sale of equipment Other Income Seiing expenses Administration expenses Finance cost Operating profit before tax Taxation Profit the year 116,320 (150,000) (100,000) (30,000) 3,447,320 (295,000) 3.152,320 Mars Bhd RM 3.790,000 277.300) 3,512,700 8,000 3.000 (125,000) (30.000) (20,000) 3,348,700 (115,550) 3,233,150 RM Statement of Changes in Equity for the year ended 31 December 2018 (extract) Jupiter Bhd Mars Bhd RM Retained profit brought forward 127,500 40,000 Profit for the year 3,152,320 3,233,150 Ordinary dividends (232,500) (137.600) Preference dividends (30,000) (24.000) Transfer to general reserves (50,000) Retained profit carried forward 2.967,320 3,111,550 Additional Information: 1. The pald-up capital of both companies are as follows: Company Name Ordinary shares 6% Cumulative Preference shares RM 500,000 400,000 RM 2,000,000 800,000 Jupiter Bhd Mars Bhd 2. Jupiter Bhd acquired 70% of the ordinary shares and 50% of the Preference Shares of Mars Bhd on 2 January 2018 for RM450,000 and RM200,000 respectively 3. 4. 5. Sales of Jupiter Bhd Include sales to Mars Bhd amounted to RM140,000. Jupiter Bhd sold the goods to Mars Bhd at cost plus of 25%. At the end of the year, RM60,000 of these goods remained unsold. As at 31 December 2018. goodwil on consolidation was Impaired by 20%. During the year, Mars Bhd sold equipment to Jupiter Bhd at RM8.000 above It carrying value. Depreciation has been provided at 20% on carrying value on yearly basis. Both companies have recorded the ordinary and preference aividends declared before the year ended 31 December 2018. However, Jupiter Bhd has only recorded ordinary dividend receivable from Mars Bhd. 6. a. Required: Prepare the Consolidated Statement of Profit or Loss of Jupiter End for the year ended 31 December 2018 (show all workings). b. Prepare the extract of the Statement of Changes in Equity of Jupiter Bhd for the year ended 31 December 2018 showing the retained profit and non-controling Interest column only [20 marks) QUESTION 2 On 1 July 2017, Venus Bhd acquired 400,000 units ordinary shares, 5.000 6% cumulative preference shares and RM15.000 10% debentures of Mercury Bhd. On that date, the retained eamings of Mercury Bhd was RM100,000. The summarized statements of Profit or Loss and statements of changes in equity (extract) of Venus Bhd and Mercury End for the year ended 3D June 2019 are as folows: Statements of Pront or Loss for the year ended 30 June 2019 Venus Bhd Mercury Bhd RM RM Revenue 1,526,700 876.800 Cost of sales (917,700) 2679.400) Gross profit 609,000 197,400 Operating expenses (467,800) (97,200) Finance costs 122.000) 15.000) Investment income 98,000 Profit before taxation 217,200 95,200 Income tax expense (42,500) (30,400) Profit for the year 174.700 64.800 Statements of Changes in Equity for the year ended 30 June 2019 (extract) Venus Bhd Mercury Bhd RM RM Retained profit brought forward 760,000 240,000 Profit for the year 174,700 64.800 Interim dividends - Ordinary (30.000) 16,000) - Preference 18.000) (3.000) Transfer to general reserve (20.000) (10.000) Retained profit carried forward 876,700 285,800 Additional Information: 1. The issued share capital of Venus Bhd and Mercury Bhd were as follows: Company Name Ordinary shares 8% Cumulative Preference shares Units 200,000 6% Cumulative Preference shares Units 10% Debentures RM Venus Bhd Mercury Bhd Units 1,800,000 500.000 100,000 50,000 2. Land and building of Mercury Bhd have the following value: Land Bullding RM RM Far value as at 1 July 2017 470.000 452.000 Carrying va ue as at 30 June 2017 350.000 350.000 Remaining useful lives of the building on the date of acquisition was 20 years. Building is depreciated on straight line method over its useful lives, and to be charged on yearly basis. 3. Investment income of Venus Bhd Includes profit from sale of equipment to Mercury End for RM14.000 and dividends received from Mercury Bhd of RM6,300. On the date of disposal, the remaining useful lives of the equipment is 5 years. Depreciation of the equipment is calculated on straight line method over its useful lives, and to be charged on yearly basis. 4. Finance costs of Mercury Bhd are al debenture interest expense. Venus Bhd has not yet recorded the debenture Interest receivable from Mercury Bhd. 5. Mercury Bhd sold goods to Venus End at a mark-up of 25% on cost. During the year, Mercury Bhd recorded sales of RM49,500 to Venus Bhd. As at the year-end. Venus End still held one third (1/3) of these goods. 6. The directors of Venus Bhd and Mercury Bhd have declared the final preference dividend on 20 June 2019 but not yet recorded by both companies. 7. Goodwill on consolidation was impaired by RM10,000 as at 30 June 2019. Required: a. Consolidated Statement of Profit or Loss of Venus Bhd and its subsidiary Mercury End for the year ended 30 June 2019. b. Consolidated Statement of Changes in Equity (extract) for the year ended 30 June 2019 showing the group retained profit and non-controlling Interest only (20 marks) QUESTION 1 Below are the Statements of Profit or loss and Statements of Changes In Equity of Jupiter Bhd and Mars Bhd for the year ended 31 December 2016. statement of Pront or Loss for the year ended 31 December 2018 Jupiter Bhd RM 4,750,000 (1,139,000 3,611,000 Sales Cost of sales Gross profit Profit on sale of equipment Other Income Seiing expenses Administration expenses Finance cost Operating profit before tax Taxation Profit the year 116,320 (150,000) (100,000) (30,000) 3,447,320 (295,000) 3.152,320 Mars Bhd RM 3.790,000 277.300) 3,512,700 8,000 3.000 (125,000) (30.000) (20,000) 3,348,700 (115,550) 3,233,150 RM Statement of Changes in Equity for the year ended 31 December 2018 (extract) Jupiter Bhd Mars Bhd RM Retained profit brought forward 127,500 40,000 Profit for the year 3,152,320 3,233,150 Ordinary dividends (232,500) (137.600) Preference dividends (30,000) (24.000) Transfer to general reserves (50,000) Retained profit carried forward 2.967,320 3,111,550 Additional Information: 1. The pald-up capital of both companies are as follows: Company Name Ordinary shares 6% Cumulative Preference shares RM 500,000 400,000 RM 2,000,000 800,000 Jupiter Bhd Mars Bhd 2. Jupiter Bhd acquired 70% of the ordinary shares and 50% of the Preference Shares of Mars Bhd on 2 January 2018 for RM450,000 and RM200,000 respectively 3. 4. 5. Sales of Jupiter Bhd Include sales to Mars Bhd amounted to RM140,000. Jupiter Bhd sold the goods to Mars Bhd at cost plus of 25%. At the end of the year, RM60,000 of these goods remained unsold. As at 31 December 2018. goodwil on consolidation was Impaired by 20%. During the year, Mars Bhd sold equipment to Jupiter Bhd at RM8.000 above It carrying value. Depreciation has been provided at 20% on carrying value on yearly basis. Both companies have recorded the ordinary and preference aividends declared before the year ended 31 December 2018. However, Jupiter Bhd has only recorded ordinary dividend receivable from Mars Bhd. 6. a. Required: Prepare the Consolidated Statement of Profit or Loss of Jupiter End for the year ended 31 December 2018 (show all workings). b. Prepare the extract of the Statement of Changes in Equity of Jupiter Bhd for the year ended 31 December 2018 showing the retained profit and non-controling Interest column only [20 marks) QUESTION 2 On 1 July 2017, Venus Bhd acquired 400,000 units ordinary shares, 5.000 6% cumulative preference shares and RM15.000 10% debentures of Mercury Bhd. On that date, the retained eamings of Mercury Bhd was RM100,000. The summarized statements of Profit or Loss and statements of changes in equity (extract) of Venus Bhd and Mercury End for the year ended 3D June 2019 are as folows: Statements of Pront or Loss for the year ended 30 June 2019 Venus Bhd Mercury Bhd RM RM Revenue 1,526,700 876.800 Cost of sales (917,700) 2679.400) Gross profit 609,000 197,400 Operating expenses (467,800) (97,200) Finance costs 122.000) 15.000) Investment income 98,000 Profit before taxation 217,200 95,200 Income tax expense (42,500) (30,400) Profit for the year 174.700 64.800 Statements of Changes in Equity for the year ended 30 June 2019 (extract) Venus Bhd Mercury Bhd RM RM Retained profit brought forward 760,000 240,000 Profit for the year 174,700 64.800 Interim dividends - Ordinary (30.000) 16,000) - Preference 18.000) (3.000) Transfer to general reserve (20.000) (10.000) Retained profit carried forward 876,700 285,800 Additional Information: 1. The issued share capital of Venus Bhd and Mercury Bhd were as follows: Company Name Ordinary shares 8% Cumulative Preference shares Units 200,000 6% Cumulative Preference shares Units 10% Debentures RM Venus Bhd Mercury Bhd Units 1,800,000 500.000 100,000 50,000 2. Land and building of Mercury Bhd have the following value: Land Bullding RM RM Far value as at 1 July 2017 470.000 452.000 Carrying va ue as at 30 June 2017 350.000 350.000 Remaining useful lives of the building on the date of acquisition was 20 years. Building is depreciated on straight line method over its useful lives, and to be charged on yearly basis. 3. Investment income of Venus Bhd Includes profit from sale of equipment to Mercury End for RM14.000 and dividends received from Mercury Bhd of RM6,300. On the date of disposal, the remaining useful lives of the equipment is 5 years. Depreciation of the equipment is calculated on straight line method over its useful lives, and to be charged on yearly basis. 4. Finance costs of Mercury Bhd are al debenture interest expense. Venus Bhd has not yet recorded the debenture Interest receivable from Mercury Bhd. 5. Mercury Bhd sold goods to Venus End at a mark-up of 25% on cost. During the year, Mercury Bhd recorded sales of RM49,500 to Venus Bhd. As at the year-end. Venus End still held one third (1/3) of these goods. 6. The directors of Venus Bhd and Mercury Bhd have declared the final preference dividend on 20 June 2019 but not yet recorded by both companies. 7. Goodwill on consolidation was impaired by RM10,000 as at 30 June 2019. Required: a. Consolidated Statement of Profit or Loss of Venus Bhd and its subsidiary Mercury End for the year ended 30 June 2019. b. Consolidated Statement of Changes in Equity (extract) for the year ended 30 June 2019 showing the group retained profit and non-controlling Interest only (20 marks)