Question 4

Retained profits 10,100 3,000 16,100 9,000 49,250 19,600 Additional information: a. The directors are extremely concerned about the large bank overdraft as of 31 December 2020 and they attribute this mainly to the increase in trade receivables as a result of alleged poor credit control. b. During the year 31 December 2020, non-current assets originally costing RM 5,500,000 were sold for RM 1,000,000. The accumulated depreciation on these assets as of 31 December 2019 was RM 3,800,000 Required: Prepare a statement of cash flows using the IAS 7 indirect method for the year 31 December 2020. (25marks) Question 4 The following is a list of assets of Pfizor Sdn Bhd at 1 April 2020: Date of Purchase Cost (RM) Machine A 1 April 2016 300,000 Machine B 1 April 2017 200,000 Motor Vehicle X 1 April 2018 56,000 Motor Vehicle Y 1 April 2017 69,000 The following transactions took place during the year ending 31 March 2021: 1 April A new motor costing RM 33,000 was fitted on Machine A. This improved the performance of the machine by 200%. 1 May Bought Motor Vehicle Z for RM 38,000. The price included insurance for the first year of RM 500 1 August Bought Machine C, trading in Machine B for RM 112,000, and paying cash of RM 200,000. Pfizor Sdn Bhd depreciates machinery on a straight-line basis over a period of 10 years assuming a nil residual value. Motor vehicles are depreciated using the sum of the years' digit method over a period of 5 years and assuming a nil residual value. It is the company's policy to charge a full year's depreciation on all assets in use at the end of a year irrespective of the date of purchase. Assets sold during a year are not depreciated. a) Prepare the following ledger accounts to record the above transactions in respect of the year ended 31 March 2021: i. Motor vehicles at cost ii. Provision for depreciation on motor vehicles iii. Machinery at cost iv. Provision for depreciation on machinery v. Machinery disposal Retained profits 10,100 3,000 16,100 9,000 49,250 19,600 Additional information: a. The directors are extremely concerned about the large bank overdraft as of 31 December 2020 and they attribute this mainly to the increase in trade receivables as a result of alleged poor credit control. b. During the year 31 December 2020, non-current assets originally costing RM 5,500,000 were sold for RM 1,000,000. The accumulated depreciation on these assets as of 31 December 2019 was RM 3,800,000 Required: Prepare a statement of cash flows using the IAS 7 indirect method for the year 31 December 2020. (25marks) Question 4 The following is a list of assets of Pfizor Sdn Bhd at 1 April 2020: Date of Purchase Cost (RM) Machine A 1 April 2016 300,000 Machine B 1 April 2017 200,000 Motor Vehicle X 1 April 2018 56,000 Motor Vehicle Y 1 April 2017 69,000 The following transactions took place during the year ending 31 March 2021: 1 April A new motor costing RM 33,000 was fitted on Machine A. This improved the performance of the machine by 200%. 1 May Bought Motor Vehicle Z for RM 38,000. The price included insurance for the first year of RM 500 1 August Bought Machine C, trading in Machine B for RM 112,000, and paying cash of RM 200,000. Pfizor Sdn Bhd depreciates machinery on a straight-line basis over a period of 10 years assuming a nil residual value. Motor vehicles are depreciated using the sum of the years' digit method over a period of 5 years and assuming a nil residual value. It is the company's policy to charge a full year's depreciation on all assets in use at the end of a year irrespective of the date of purchase. Assets sold during a year are not depreciated. a) Prepare the following ledger accounts to record the above transactions in respect of the year ended 31 March 2021: i. Motor vehicles at cost ii. Provision for depreciation on motor vehicles iii. Machinery at cost iv. Provision for depreciation on machinery v. Machinery disposal