The following is the trial balance of AmazeRock Sdn. Bhd. as at 31 December 2019. Debit Credit RM RM Sales 1,077,000 Inventory as at 1 January 2019: Raw materials 16,000 Work-in-progress 11,000 Finished goods 32,000 Purchases of raw materials 720,000 Direct labour 60,000 Carriage inwards 2,000 Direct expenses - royalty 25,000 Factory rental 36,000 Utilities 40,000 Office rental 17,000 Factory supervisor salary 26,000 Administrative salaries 30,000 General administrative expenses 20,000 Plant and machinery 50,000 Office equipment 60,000 Accumulated depreciation as at 1 January 2019: Plant and machinery 10,000 Office equipment 12,000 Ordinary shares 46,000 1,145,000 1,145,000 Additional information: 1. Inventories as at 31 December 2019 were as follows: Raw materials RM26,000 Work in progress RM9,000 Finished goods RM31,000 2. Depreciation of non-current assets is based on the following methods: Plant and machinery 10% per annum on cost Office equipment 12% per annum using reducing balance method Office equipment’s depreciation amounting to RM2,500 is to be allocated to factory and the balance to office. 3. Prepaid factory rental amounted to RM7,000 and accrued general administrative expenses amounted to RM8,000. 4. Total royalties (incurred) for goods manufactured during the year amounted to RM32,500. 5. 60% of utilities expense is to be apportioned to the factory while the remaining 40% is to be apportioned to the administrative department.

Section B Q1. (a) (Continued) 

Required:

Prepare the following accounts and financial statements for AmazeRock Sdn. Bhd.:

(i) Manufacturing account for the year ended 31 December 2019. 

(ii) Statement of profit or loss for the year ended 31 December 2019.

(b) The following were from the accounting books of Fiffy Company for the month of June 2019. CASHBOOK RM RM Balance b/d 5,000 Rania 650 Reen 850 Raisha 780 Utility 200 Balance c/d 4,220 5,850 5,850 Upon investigation, the following were discovered by Sammy:  Payment to Effa creditor has been entered RM 1,500 in the cashbook, but the correct amount was RM 2,030 has been recorded by the bank.  Dividend received of RM1,000 shown in the bank statement have not been entered in the cash book.  Bank charges for the month was RM55  A cheque of RM850 from Reen was not included in the bank Statement as it was dropped in the night depositary after bank hours on 30 June 2019.  A standing order to Telekom for RM150 had been paid by the bank on 28 June 2019 but no entry appeared in the cash book.  Cheques payment amounting RM650 to Rania and RM780 to Raisha were drawn by Fiffy but not yet presented at the bank by the creditors.  A cheque RM500 has been returned by the bank marked “refer to drawer” but it has not been written back in the cash book  The bank statement for the 30 June 2019 showed a balance RM4,565.

Required:

(i) Make any necessary correction in the Cashbook and carry down the updated balance. (7 marks)

(ii) Prepare a bank reconciliation statement for Fifty Company as at 30 June 2019.