QUESTION 4

i- Tulip Bhd manufactures toys and has been in the business since 2001. The company is listed on the Bursa Malaysia since 2005 and operates in Kempas Utama Industrial Park, Johor. The financial year ends of the company is on 31 December each year. The following data was extracted from the company's books.

1. On 1 January 2018, the issued share capital of Tulip Bhd consisted of 120,000,000 ordinary shares of RM1.20 each and 1,500,000 preference shares of RM1 each.

2. RM1,200,000 10% convertible debentures were issued on 1 January 2018. These debentures are convertible into ordinary shares on the basis of 50 shares per RM40 debentures. On 30 June 2018, 30% of the debentures were converted.

3. Tulip's basic earnings per share for the year ended 31 December 2018 is 36 sen. The weighted average number of equity shares outstanding for the calculation of the basic earnings per share is 40,000,000.

4. Profit after tax for the year amounted to RM13,500,000.

5. The company declared preference dividend amounting to RM500,000 on the year ended 31 December 2018.

6. Tax rate for 2018 is at 24%.

Required:

a. calculation for the diluted earnings per share (DEPS) for the year ended 31 December 2018 in accordance to the MFRS133 Earning Per Share.

b. Explain to Tulip Bhd regarding the presentation of the basic and diluted earnings per share in the statement of profit or loss and other comprehensive income

part 2:

Cantik Bhd is authorised to issue 50,000,000 shares of ordinary share. During 2019, Cantik Bhd took part in the following selected transactions:

1. Issued 5,000,000 shares at RM15 per share, less costs related to the issuance of the share totalling RM50,000.

2. Issued 100,000 shares for land appraised at RM1,500,000. The share was actively traded on a national stock exchange at approximately RM20 per share on the date of issuance.

3. Purchased 500,000 shares of treasury shares at RM13 per share. The treasury shares purchased were issued in 2018 at RM 11 per share. (Use cost method)

Required:

journal entries for the above transactions of Cantik Bhd.

Part 3 :

Non-profit organisations do not trade in goods or provide services with a profit motive. Hence this type of organisation does not have to keep any accounting records. Need a brief note to debate this statement.