QUESTION 3 (20 MARKS) Seri Gelam Sdn Bhd is a company that supplies hospital equipment product. Table 4 shows statements in the company's account. Table 4: Statements in the Seri Gelam Sdn Bhd's account Statements RM Stock (1 January 2019) 3,000 Stock (31 December 2019) 4,000 Capital 100,000 Bank 165,528 Purchase 20,000 Sales 200 200 General expenses 1,000 Rent paid 8.000 Machineries 130.000 Office equipment 33.000 Creditors 55.780 Wages And Salaries 109.900 Bank (Long term loan) 70.000 Debtors 10,000 Overdraft (short term loan) 60,000 Other relevant supplementary information are as follows: Depreciation for machineries is 10% every year. Depreciation allocation for machineries for last year was RM26000 Total tax to be paid is 10% The board of director agreed to distribute 60% dividend to the shareholders for the financial year ending 31 December 2019. a) Based on the data in Table 1, construct the income statement and balance sheet as at 31 December 2019. (13 marks) b) Evaluate the company's ability to pay current liabilities. If the company plan to increase production by applying some loan, determine whether the company has the capability to pay the current loan. Justify your answer with the normal situation and for a short term situation. (4 marks) c) It is found that there are some statements are not stated in the account: (0) Company has purchased vehicles RM 150,000 by loan for company usage, (ii) Company paid cash in bank RM 20,000 for extra office equipment, Stakeholder add cash in bank RM 50,000 as an additional capital. Determine the change of the balance sheet by showing the amount reduced or increased at the suitable place after considering the statements above. (3 marks) QUESTION 3 (20 MARKS) Seri Gelam Sdn Bhd is a company that supplies hospital equipment product. Table 4 shows statements in the company's account. Table 4: Statements in the Seri Gelam Sdn Bhd's account Statements RM Stock (1 January 2019) 3,000 Stock (31 December 2019) 4,000 Capital 100,000 Bank 165,528 Purchase 20,000 Sales 200 200 General expenses 1,000 Rent paid 8.000 Machineries 130.000 Office equipment 33.000 Creditors 55.780 Wages And Salaries 109.900 Bank (Long term loan) 70.000 Debtors 10,000 Overdraft (short term loan) 60,000 Other relevant supplementary information are as follows: Depreciation for machineries is 10% every year. Depreciation allocation for machineries for last year was RM26000 Total tax to be paid is 10% The board of director agreed to distribute 60% dividend to the shareholders for the financial year ending 31 December 2019. a) Based on the data in Table 1, construct the income statement and balance sheet as at 31 December 2019. (13 marks) b) Evaluate the company's ability to pay current liabilities. If the company plan to increase production by applying some loan, determine whether the company has the capability to pay the current loan. Justify your answer with the normal situation and for a short term situation. (4 marks) c) It is found that there are some statements are not stated in the account: (0) Company has purchased vehicles RM 150,000 by loan for company usage, (ii) Company paid cash in bank RM 20,000 for extra office equipment, Stakeholder add cash in bank RM 50,000 as an additional capital. Determine the change of the balance sheet by showing the amount reduced or increased at the suitable place after considering the statements above
