QUESTION 1 Prestige Bhd is a public listed company involves in the manufacture and sales of industrial products. Unless stated otherwise, the following trial balance related to the accounts of the company as at 31 December 2020, Dehit (RM 000) Credit (RM 000) 300,000 79.429 3,000 12.090 75,000 240,000 100,000 18.000 96,000 40,951 4,500 300,000,000 units of ordinary shares capital Retained earnings (on 1/1/2020) Revaluation reserve (on 1/1/2020) 8% Redeemable bonds Property, plant, and equipment (at cost, on 1/1/2020): Land Plant and equipment Motor vehicles Intangible asset: patents Accumulated depreciation or amortization (on 1/1/2020): Plant and equipment Motor vehicles Patents Investment in associate Inventory Trade receivables and trade payables Cash at bank Revenue Cost of sales Interest income from associate Tax (current year payment) Repair and maintenance Advertisement Directors' emolument Legal and other professional fees Auditors' fees Interim dividend: ordinary Finance cost Staff payroll 25.000 34.845 54,000 101,850 36,000 239.890 138,845 1,000 15,800 840 1.650 400 200 150 500 140 5.640 812.860 812,860 Additional information: (a) Made rights issue of one share for every thirty shares held in late December 2020 at issue price of RM1,00 per share (market price: RM1.50 per share). These shares were fully taken up and paid for but recorded in 8% redeemable bonds. 1 SULIT SULIT DPA.30053 FINANCIAL ACCOUNTING 3 (b) RM2,200,000 (par value) 8% redeemable bonds issued on 1 January 2020 at discount of 5%. Transaction cost of RM90,000 was treated as finance cost. Th bonds will be redeemed in four years' time at par. The effective interest rate 10.9256% (the interest as at 31 December 2020 not yet recorded and round up to interest amount to nearest RM). (c) Land was revalued to RM74,000,000 on 31 December 2020. The deficit on revaluation to be transferred into other comprehensive income. (d) Other non-current assets to be depreciated or amortized as follows: Plant and equipment at 8% per annun: a cost (part of cost of sales). Motor vehicles at 10% per annum or carrying amount (part of stribution). Patents at 5% per annum on cost (part of administrative). ml Included in out of rates and in non 31 Decembar 2010 closing inventory Legal and other professional fees Auditors' fees Interim dividend: ordinary Finance cost Staff payroll 200 150 500 140 5,640 812,860 812.860 Additional information: (a) Made rights issue of one share for every thirty shares held in late December 2020 at issue price of RM1.00 per share (market price: RM1.50 per share). These shares were fully taken up and paid for but recorded in 8% redeemable bonds. SULIT SULIT DPA 20053 FINANCIAL ACCOUNTING 3 (b) RM2,200,000 (par value) 8% redeemable bonds issued on 1 January 2020 at a discount of 5%. Transaction cost of RM90,000 was treated as finance cost. These bonds will be redeemed in four years' time at par. The effective interest rate at 10.9256% (the interest as at 31 December 2020 not yet recorded and round up the interest amount to nearest RM). (e) Land was revalued to RM74,000,000 on 31 December 2020. The deficit on revaluation to be transferred into other comprehensive income. (d) Other non-current assets to be depreciated or amortized as follows: Plant and equipment at 8% per annum on cost (part of cost of sales). Motor vehicles at 10% per annum on carrying amount (part of distribution), Patents at 5% per annum on cost (part of administrative). () Included in cost of sales and inventory on 31 December 2020. closing inventory at cost of RM145,000 and at net realisable value of RM100,000. (1) Included in advertisement, an annual advertising cost of RM240.000 commencing 1 April 2020.8% redeemable bonds interest still outstanding. Besides that, the following administrative costs still unpaid as at year end: Legal and other professional fees of RM70,000 Auditors' fees of RM10,000 Repair & maintenance and staff payroll to be allocated to administrative and distribution at a ratio of 1:2, respectively (g) Board of directors of the company decided to: i transfer of RM500,000 from retained earnings to general reserve. ii. propose 0.8% dividend for ordinary shares before rights issue. (h) Corporate tax rate for the year of assessment 2020 at 24%. Tax over provided in 2019 amounted to RM200,000 (i) Investment in associate related to 5% redeemable debentures of RM25,000,000 (nominal value). The amount in trial balance referring to payment of interest received from the associate as at year end. Required to construct the following statements and note that suitable for publication: (CLO2] i. Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 (show workings to arrive at cost of sales, total distribution costs, total administrative costs, and total finance costs). [40 marks) ii. Statement of Changes in Equity for the year ended 31 December 2020 [20 marks) Statement of Financial Position as at 31 December 2020, (30 marks] IV. Note to the financial statements for property, plant, and equipment. [10 marks] QUESTION 1 Prestige Bhd is a public listed company involves in the manufacture and sales of industrial products. Unless stated otherwise, the following trial balance related to the accounts of the company as at 31 December 2020, Dehit (RM 000) Credit (RM 000) 300,000 79.429 3,000 12.090 75,000 240,000 100,000 18.000 96,000 40,951 4,500 300,000,000 units of ordinary shares capital Retained earnings (on 1/1/2020) Revaluation reserve (on 1/1/2020) 8% Redeemable bonds Property, plant, and equipment (at cost, on 1/1/2020): Land Plant and equipment Motor vehicles Intangible asset: patents Accumulated depreciation or amortization (on 1/1/2020): Plant and equipment Motor vehicles Patents Investment in associate Inventory Trade receivables and trade payables Cash at bank Revenue Cost of sales Interest income from associate Tax (current year payment) Repair and maintenance Advertisement Directors' emolument Legal and other professional fees Auditors' fees Interim dividend: ordinary Finance cost Staff payroll 25.000 34.845 54,000 101,850 36,000 239.890 138,845 1,000 15,800 840 1.650 400 200 150 500 140 5.640 812.860 812,860 Additional information: (a) Made rights issue of one share for every thirty shares held in late December 2020 at issue price of RM1,00 per share (market price: RM1.50 per share). These shares were fully taken up and paid for but recorded in 8% redeemable bonds. 1 SULIT SULIT DPA.30053 FINANCIAL ACCOUNTING 3 (b) RM2,200,000 (par value) 8% redeemable bonds issued on 1 January 2020 at discount of 5%. Transaction cost of RM90,000 was treated as finance cost. Th bonds will be redeemed in four years' time at par. The effective interest rate 10.9256% (the interest as at 31 December 2020 not yet recorded and round up to interest amount to nearest RM). (c) Land was revalued to RM74,000,000 on 31 December 2020. The deficit on revaluation to be transferred into other comprehensive income. (d) Other non-current assets to be depreciated or amortized as follows: Plant and equipment at 8% per annun: a cost (part of cost of sales). Motor vehicles at 10% per annum or carrying amount (part of stribution). Patents at 5% per annum on cost (part of administrative). ml Included in out of rates and in non 31 Decembar 2010 closing inventory Legal and other professional fees Auditors' fees Interim dividend: ordinary Finance cost Staff payroll 200 150 500 140 5,640 812,860 812.860 Additional information: (a) Made rights issue of one share for every thirty shares held in late December 2020 at issue price of RM1.00 per share (market price: RM1.50 per share). These shares were fully taken up and paid for but recorded in 8% redeemable bonds. SULIT SULIT DPA 20053 FINANCIAL ACCOUNTING 3 (b) RM2,200,000 (par value) 8% redeemable bonds issued on 1 January 2020 at a discount of 5%. Transaction cost of RM90,000 was treated as finance cost. These bonds will be redeemed in four years' time at par. The effective interest rate at 10.9256% (the interest as at 31 December 2020 not yet recorded and round up the interest amount to nearest RM). (e) Land was revalued to RM74,000,000 on 31 December 2020. The deficit on revaluation to be transferred into other comprehensive income. (d) Other non-current assets to be depreciated or amortized as follows: Plant and equipment at 8% per annum on cost (part of cost of sales). Motor vehicles at 10% per annum on carrying amount (part of distribution), Patents at 5% per annum on cost (part of administrative). () Included in cost of sales and inventory on 31 December 2020. closing inventory at cost of RM145,000 and at net realisable value of RM100,000. (1) Included in advertisement, an annual advertising cost of RM240.000 commencing 1 April 2020.8% redeemable bonds interest still outstanding. Besides that, the following administrative costs still unpaid as at year end: Legal and other professional fees of RM70,000 Auditors' fees of RM10,000 Repair & maintenance and staff payroll to be allocated to administrative and distribution at a ratio of 1:2, respectively (g) Board of directors of the company decided to: i transfer of RM500,000 from retained earnings to general reserve. ii. propose 0.8% dividend for ordinary shares before rights issue. (h) Corporate tax rate for the year of assessment 2020 at 24%. Tax over provided in 2019 amounted to RM200,000 (i) Investment in associate related to 5% redeemable debentures of RM25,000,000 (nominal value). The amount in trial balance referring to payment of interest received from the associate as at year end. Required to construct the following statements and note that suitable for publication: (CLO2] i. Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 (show workings to arrive at cost of sales, total distribution costs, total administrative costs, and total finance costs). [40 marks) ii. Statement of Changes in Equity for the year ended 31 December 2020 [20 marks) Statement of Financial Position as at 31 December 2020, (30 marks] IV. Note to the financial statements for property, plant, and equipment. [10 marks]