Question
Question :- Statement of Comprehensive Income for the year ended 31 December 2010 Debit RM Credit RM Freehold land at cost 4,600,000 Building at cost
Question :- Statement of Comprehensive Income for the year ended 31 December 2010
| Debit RM | Credit RM |
Freehold land at cost | 4,600,000 |
|
Building at cost | 9,000,000 |
|
Plant and equipment at cost | 5,800,000 |
|
Motor vehicles at cost | 900,000 |
|
Accumulated depreciation on 1 January 2010: |
|
|
Buildings |
| 600,000 |
Plant and equipment |
| 900,000 |
Motor vehicles |
| 200,000 |
Ordinary share capital |
| 10,000,000 |
5% preference share capital |
| 3,000,000 |
10% debentures |
| 800,000 |
Long term loan |
| 400,000 |
Retained earnings as at 1 January 2010 |
| 2,890,000 |
General reserve |
| 190,000 |
Rental income |
| 140,000 |
Interim dividend | 510,000 |
|
Share premium |
| 1,800,000 |
Trade receivables/Trade payables | 650,000 | 700,000 |
Allowance for doubtful debts |
| 20,000 |
Sales |
| 9,270,000 |
Cost of sales | 5,716,000 |
|
Carriage outwards | 100,000 |
|
Staff salaries | 1,290,000 |
|
Advertising expense | 100,000 |
|
Inventories at cost as at 31 December 2010 | 480,000 |
|
Cash at bank and in hand | 156,000 |
|
Debenture Interest Bank Loan Interest | 80,000 14,000 |
|
Administrative expenses | 460,000 |
|
Distribution costs | 324,000 |
|
Investment | 230,000 |
|
Tax paid | 180,000 |
|
Dividend income |
| 120,000 |
Intangible asset at cost | 440,000 |
|
| 31,030,000 | 31,030,000 |
Additional information:
1. Depreciation is to be charged as follows:
Building is depreciated at 20% per annum while plant and equipment at 10% on cost per annum and are to be charged as administrative expenses. Motor vehicles are depreciated at 20% on reducing balance method and are to be charged as distribution costs.
2. Accrued staff salaries amounted to RM64,000, while prepaid advertising expensewas RM30,000. The staff salaries are to be regarded as administrative expenses.
3. On 31 December 2010, the board of directors has decided to:
a) Transfer RM40,000 to general reserve; and
b) Declare a final dividend on ordinary shares of 10% and second-half year preferencedividend.
4. The directors estimated the income tax expense for the year ended 31 December 2010 tobe RM230,000.
5. Included in the administrative expenses are:
Directors remuneration RM180,000
Audit fees RM 20,000
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