QUESTION 2 Below are the financial statements of Sambal Belacan Bhd as at 30 June 2019. Sambal Belacan Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019 RM Sales 4,681,000 Cost of sales (1,450,000) Gross profit 3,231,000 Administrative expenses (680,500) Selling expenses (250,000) Profit from operations 2,300,500 Interest expense (88,000) Dividend income 50,000 Gain on sales of machinery 32,000 Profit before tax 2,294,500 Taxation (800,500) Profit for the year 1,494,000 Other comprehensive income: Surplus on revaluation of building 50,000 Total Comprehensive Income 1,544,000 Sambal Belacan Bhd Statement of Changes in Equity for the year ended 30 June 2019 Share Retained Revaluation Capital Profit reserve RM RM RM Balance at 1 July 2018 2,000,000 1,120,000 350,000 Issue of shares 1,000,000 Bonus share 500,000 (500,000) Surplus on revaluation 50,000 Profit after tax 1,494,000 Dividend paid (320,000) Balance at 30 June 2019 3,500,000 1,794,000 400,000 2018 RM Sambal Belacan Bhd Statements of Financial Position as at 30 June 2019 RM Non-current assets Property, plant, and equipment 928,000 Investment property 260.000 Development costs 180,000 755,000 200,000 120,000 Current assets Inventories Accounts receivable Short term investment Cash at bank 120,500 75,500 1,510,000 3,627,000 6,701,000 90,000 84,000 1,620,000 2,044,000 4,913,000 Share capital and reserves Ordinary shares Reserves 3,500,000 2,194.000 2,000,000 1,470,000 Non-current liabilities Bank loan 800,000 1,200,000 Current liabilities Accrued expenses Accrued interest Accounts payable Tax payable 60,000 15,000 95.000 37.000 6.701.000 85.000 25,000 88,000 45,000 4,913,000 Additional information: 1. The details of property, plant, and equipment as at 30 June 2019: Freehold property RM 500,000 50.000 Motor vehicle Machinery RM RM 120,000 250,000 Cost Balance at 1 July 2018 Surplus New acquisition Disposal Balance at 30 June 2019 80,000 100,000 (40,000) 310,000 550.000 200.000 40,000 Accumulated depreciation Balance at 1 July 2018 Disposal Charge for the year Balance at 30 June 2019 15,000 75,000 (18.000) 20,000 77,000 55,000 Carrving value 550.000 145,000 233,000 5 CONFIDENTIAL CONFIDENTIAL JUNE 2020/SET A/ACC303 2. The machine was disposed of during the year at a profit of RM32,000. All depreciation charges were treated as administrative expenses. 3 All new acquisition of property, plant, and equipment were purchased for cash. 4. Included in administration expense is bad debt expense amounting to RM30,000 5. The increase in the share capital is due to the issue of share to public and bonus share out of profit. 6. Short term investments are to be considered as cash and cash equivalents Required: Prepare a Statement of Cash Flows for the year ended 30 June 2019 for Sambal Belacan Bhd using the direct method and in compliance with MFRS 107 Statement of Cash Flows. QUESTION 2 Below are the financial statements of Sambal Belacan Bhd as at 30 June 2019. Sambal Belacan Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019 RM Sales 4,681,000 Cost of sales (1,450,000) Gross profit 3,231,000 Administrative expenses (680,500) Selling expenses (250,000) Profit from operations 2,300,500 Interest expense (88,000) Dividend income 50,000 Gain on sales of machinery 32,000 Profit before tax 2,294,500 Taxation (800,500) Profit for the year 1,494,000 Other comprehensive income: Surplus on revaluation of building 50,000 Total Comprehensive Income 1,544,000 Sambal Belacan Bhd Statement of Changes in Equity for the year ended 30 June 2019 Share Retained Revaluation Capital Profit reserve RM RM RM Balance at 1 July 2018 2,000,000 1,120,000 350,000 Issue of shares 1,000,000 Bonus share 500,000 (500,000) Surplus on revaluation 50,000 Profit after tax 1,494,000 Dividend paid (320,000) Balance at 30 June 2019 3,500,000 1,794,000 400,000 2018 RM Sambal Belacan Bhd Statements of Financial Position as at 30 June 2019 RM Non-current assets Property, plant, and equipment 928,000 Investment property 260.000 Development costs 180,000 755,000 200,000 120,000 Current assets Inventories Accounts receivable Short term investment Cash at bank 120,500 75,500 1,510,000 3,627,000 6,701,000 90,000 84,000 1,620,000 2,044,000 4,913,000 Share capital and reserves Ordinary shares Reserves 3,500,000 2,194.000 2,000,000 1,470,000 Non-current liabilities Bank loan 800,000 1,200,000 Current liabilities Accrued expenses Accrued interest Accounts payable Tax payable 60,000 15,000 95.000 37.000 6.701.000 85.000 25,000 88,000 45,000 4,913,000 Additional information: 1. The details of property, plant, and equipment as at 30 June 2019: Freehold property RM 500,000 50.000 Motor vehicle Machinery RM RM 120,000 250,000 Cost Balance at 1 July 2018 Surplus New acquisition Disposal Balance at 30 June 2019 80,000 100,000 (40,000) 310,000 550.000 200.000 40,000 Accumulated depreciation Balance at 1 July 2018 Disposal Charge for the year Balance at 30 June 2019 15,000 75,000 (18.000) 20,000 77,000 55,000 Carrving value 550.000 145,000 233,000 5 CONFIDENTIAL CONFIDENTIAL JUNE 2020/SET A/ACC303 2. The machine was disposed of during the year at a profit of RM32,000. All depreciation charges were treated as administrative expenses. 3 All new acquisition of property, plant, and equipment were purchased for cash. 4. Included in administration expense is bad debt expense amounting to RM30,000 5. The increase in the share capital is due to the issue of share to public and bonus share out of profit. 6. Short term investments are to be considered as cash and cash equivalents Required: Prepare a Statement of Cash Flows for the year ended 30 June 2019 for Sambal Belacan Bhd using the direct method and in compliance with MFRS 107 Statement of Cash Flows