4.

1
Raul Raul
Statements of Profit or loss
For the year ended 31 December x6
RM000 RM000
Revenue 20,000
Cost of sales 10,000+150+325 (10,475)
Gross profit 9,525
Selling and distribution expenses 1,000+60+130 (1,190)
Administrative expenses 1,500+90+195+200+250 (2,235)
Operating profit 6,100
Fair value change in equity investment 20
Investment income 150
Profit before tax 6,270
Taxation (2,350+50) (2,400)
Profit after tax 3,870
Raul Raul Bhd Statement Of
Changes in Equity For the year
ended 31 December x6

Ordinary
Shares

Preference shares

Share premium

Retained profits

Total
RM000 RM000 RM000 RM000 RM000
10

1.1. Year 6 3,000 2,000 6,000 14,680 25,680

Issue of shares 2,000 12,000 14,000
Net profit 3,870 3,850
Dividends paid (130) (130)
5,000 2,000 18,000 18,420 43,400

Share capital

Raul Raul
Statement of Financial Position
As at 31 December x6

RM000 RM000

Ordinary shares 5,000

8% preference shares 2,000

7,000
Share premium 18,000
Retained profit 18,420

43,420
 Current Liabilities
Trade payables 5,000
Tax payable 600 5,600

49,020
Non-Current Assets
Property, plant and equipment 41,000
Investment in loan instruments 600
Current Assets
Inventory 2,000
Trade receivables 3,000
Investments in equity instruments 920

Bank 1,500
7,420

49,020

4.2
Distribution Administration
RM000 RM000

Warehouse expenses 1,700

Sales salary and commission 3,700
Admin Salaries 6,140
Directors salaries 1,740
General admin 1160+140-70 1,230
General distribution980+90-140 1,030
Depreciation
36,000-2,000 34,000
X10%=
3,400
11

Gain on disposal (100)

3,300 2,310 990

Bad debts 400

Provision for doubtful debts (132) 268
8,740 10,368
Windows 101 Bhd
Statement of Profit or Loss
For the Year Ended 30 November x6
RM000 RM000
Revenue 59,200
Cost of sales 17,500+200 (17,700)
Gross profit 41,500
Selling and distribution expenses (8,740)
Administrative expenses (10,368)
Operating profit 22,392
Finance cost (200)
 Profit before tax 22,192
Tax
Tax provision for the year 2,100
Tax over-provided in prior period (100) (2,000)
Profit after tax 20,192

Windows 101 Bhd

Bhd
Statement Of Changes in Equity
For the year ended 30 November x6

Ordinary
Shares

Share premium

Retained profits

Total

RM000 RM000 RM000 RM000

1.11. Year 5 8,000 2,600 7,220 17,820
Issue of shares 1,000 2,000 3,000

Comprehensive income

20,192 20,192
Dividends paid (4,240) (4,240)
9,000 4,600 23,172 36,772
Windows 101 Bhd
Statement of Financial Position as at 30 November x6

RM000 RM000
12

Equity and liabilities

Ordinary shares 8,000+1,000 9,000
Share premium 4,600
Retained profits 23,172

36,772

Non-current liability
Loan 2,000
Current liabilities
Trade payables 7,600
Accrued expenses 230
Tax payable 200 8,030

46,802

Non-current assets
Property, plant and equipment 34,000
Accumulated depreciation (9,400) 24,600
Current assets
Inventory 4,800
 Trade receivables (less provision for doubtful
debts) 13,132
Prepaid expenses 110
Bank 4,160 22,202

46,802

4.3
Felix Bhd
Statement of Profit or Loss
For the year ended 31 December x5
RM000
Revenue 44,000
Changes in inventories of finished goods and work in progress 1,500
Raw material and consumables used (15,000)
Staff costs (5,500)
Depreciation and amortisation expenses (1,150)
Other operating expenses 1,200+500+1,700+1,240 (4,640)
Profit from operations 19,210
Finance cost (400)
Income from investments 190
Profit before tax 19,000
Income tax expense (4,100)
Profit for the year 14,900

b.
RM000
Turnover 44,000
13

Cost of sales (13,500+650) (14,150)

Gross profit 29,850
Distribution expenses (1,700+250+620+2,750) (5,320)
Administrative expenses (1,200+500+250+620+2,750) (5,320)
Operating profit 19,210
Finance cost (400)
Income from investments 190
Profit before tax 19,000
Income tax expense (4,100)
Profit for the year 14,900
4.4
Chelsea Bhd Calculating profit after tax for the year ended 30.06.x5

Retained profit (given) RM000

330,860
Retained profit b/f (given) (200,200)
Profit before tax 130,660
Adjustments
Prepayment insurance 2,500
Accrued expense (1,800)
Interest 7/12x8%x120,000 (5,600)
 Bad debts and doubtful debts 966
Depreciation- building (10,480)
- equipment (1,520)
Investment income 6,100
Tax (37,000)
Profit after tax 83,826
EPS 83,826 = 27.94 sen
300,000

Chelsea Bhd. Statement of

Financial Position as at 30 June
x5

Share capital
RM000 RM000 RM000
Ordinary shares 300,000

Components of other equity

Share premium 50,000
14

Retained profit(200,200+83,826-17,000) 267,026

617,026

Non-current Liabilities
8% Fixed term loan 120,000

Current Liabilities
Accounts payable 75,140
Tax payable 2,000
Accruals and other creditors 7,400 84,540

821,566

Non-
Curren
t Assets
Cost
Acc
depre
Carryin
g
amount
Freehold land 56,000
Building 524,000 (21,680) 502,320
Equipment 19,000 (5,320) 13,680

572,000
Investments 25,000
Current Assets
Inventory 127,400
Trade receivables (82,280 less 4,114) 78,166
Prepayment 2,500
 Bank balance 16,500

224,566

821,566

4.5
Spice Bhd
Statements of Profit or Loss and Other Comprehensive Income for
the year ended 31.03.x5

Turnover RM000
681,000
Cost of sales 15+323-13.5 (324,500)
Gross profit 356,500
Selling and distribution (102k+3+21) (125,000)
Administrative expenses(82k+24k+24+2) (132,000)
Other expenses (6,000)
Operating profit 93,500
Fair value change 2,500
Finance cost (120k x 12%) (14,400)
Profit before tax 81,600
Taxation (23,000)
Profit after tax 58,600
Other comprehensive income 12,000
Total comprehensive income 70,600
15

Basic earnings per share (sen) 19.53

EPS 58,600 = 19.53 sen
300,000

Spice Bhd
Statement Of Changes in Equity
For the year ended 31.03.05

Ordinary Share Revaluation Retained Total

1.4. Year 4 shares premium reserve profits
RM000 RM000 RM000 RM000 RM000
300,000 42,000 47,500 389,500
Issuance of 100,000 25,000 125,000
shares
Total 12,000 58,600 70,600
comprehensive
income
Dividends paid (20,000) (20,000)
400,000 67,000 12,000 86,100 565,100

Spice Bhd.
Statement of Financial
Position as at 31.03.x5

Share capital
 RM000 RM000

Ordinary shares of RM1.00 each 467,000

Components of equity
Retained profit 86,100
Other components of equity 12,000

565,100
Non-current Liabilities
10% Debentures (120,000-2,000 (transaction
costs) +2,400)

120,400

Current Liabilities
Accounts payable 41,000

726,500
Non-Current Assets Cost Acc depre
Freehold land 120,000
16

Building 600,000 (234,00) 366,000

Plant and machinery 200,000 (93,000) 107,000

593,000
Current Assets
Inventory 13,500
Trade receivables 82,000
Tax recoverable 2,000
Investments 27,500

Cash in hand 8,500

133,500

726,500

4.6
Meg Bhd
Statement of Profit or Loss
For the year ended 30 September x5

RM000 RM000
Turnover (37,000 3,000) 34,000
Cost of sales (14,800-500 -500) (13,800)
Gross profit 20,200
Selling and distribution expenses (5,100)
Administrative expenses (4,100)
Operating profit 11,000
Preference share - dividend (2,400)
Finance cost (800)
Interest income 500
 Profit before tax 8,300
Taxation (2,100)
Profit after tax 6,200
Other comprehensive income
Surplus on revaluation 2,000
Total comprehensive income 8,200

Meg Bhd
Statement Of Changes in Equity
For the year ended 30 September x5
Ordinary Share Revaluation Retained Total
Shares premium reserve profits
RM000 RM000 RM000 RM000 RM000
1.10. Year 6 15,000 10,000 2,000 2,000 29,000
Comprehensive 2,000 6,200 8,200
income
Dividends paid (2,000) (2,000)
15,000 10,000 4,000 6,200 35,200

17

Meg Bhd
Statement of Financial Position
As at ended 30 September x5

Equity and Liabilities RM000 RM000

Share capital
Ordinary shares of RM1.00 each 15,000

Components of equity
Retained profits 6,200
Other components of equity 14,000 20,200

35,200
Non-current liabilities
Loan stock 16,000
5% Redeemable preference shares (3,000+900) 3,900

Current Liabilities
Trade payables 3,000
Tax payable 100 3,100

58,200

Non-Current Assets
Property, plant and equipment 44,000

Current Assets
Inventory 4,600
Trade receivables 5,000

Bank 4,600
14,200
58,200

4.7
Pele Bhd
Statement of Profit or Loss
for the year ended 30 June x6

Turnover RM000
1,705,000
Cost of sales 33+665-40) (658,000)
Gross profit 1,047,000
Operating expenses (see working) (553,584)
Operating profit 493,416
Finance cost (15+16) (31,000)
18

Interest income 10,000

Dividend income 30,240
Profit before tax 502,656
Taxation (150,000)
Profit after tax 352,656
Pele Bhd.
Statement of Financial Position as at 30 June x6

Share capital

RM000 RM000
Ordinary shares 690,000
8% Preference shares 100,000
Reserves
Revaluation reserve 190,000
Retained profit 535,656

1,515,596

Non-current Liabilities
6% Loan stock 500,000
Deferred taxation 71,000 571,000
Current Liabilities
Trade payables 77,000
Provisions for repairs and warranties 25,575
Tax payable 12,500
Accruals and other creditors 27,000 142,675

2,228,671

Non-Current Assets
Leasehold property 665,000
Plant (300-100+200) less (100-50+40) 310,000
Furniture and fittings 16,000

Intangibles R&D 12,000

 Investments 150,000
Current Assets
Loan to directors 100,000
Loan to employees 20,000
Inventory 40,000
Trade receivables 44,991
Prepayment 6,000
Bank 864,680

2,228,671
19

Pele
Statement of Changes in Equity
For the year ended 30 June x5
Equity
Share

Preference shares

Revaluatio n reserve

Retained profit

RM000 RM000 RM000 RM000

1.7.Year4 440,000 100,000 200,000 207,500

Total comprehensive income

Share issue 250,000

3643

Transfer (10,000) 10,000

Dividends (34,560)

30.6.Year 4 690,000 100,000 190,000 535,596

Working

Expenses
RM000
Rental (10,000-6,000) 4,000
Office salaries 220,000
Stationery 14,000
Selling expenses 160,000
Directors remuneration 24,000
Loss on sale of plant 5,000
Advertising expenses 12,000
Bad debts 10
Doubtful debts 4,999
Provisions for warranties and repairs 22,575
 R&D amortisation and impairment 8,000
Depreciation leasehold 35,000
- plant 40,000
- furniture 4,000

Tax payable sofp

B/d
RM000

Deferred tax 76,000

Tax payable 37,500
Tax expense as per income statement 150,000
Paid (180,000)
C/d
Deferred tax (71,000)
20

Tax payable 12,500

4.8
Maradona Bhd Statement of Profit or Loss for the year ended 31.12.x4
RM000
Revenue 300,000

Cost of sales (153,000)

Gross profit 147,000
Selling expenses (20,000)

Administrative expenses (35,000- 2,000+1,600) (34,600)

Operating profit 92,400
Finance cost (300+((8m-2m)x10%) +(8mx12%=960)+250 (2,110)

Profit before tax 90,290

Taxation (18m+(6.25m-5.5m)+2m (20,550)

Profit after tax 69,740
Basic earnings per share (sen) 27.9 sen
EPS 69,740= 27.9 sen
250,000

Maradona Bhd.

Statement of Financial Position as at 31.12.x4

Share capital
RM000 RM000

Ordinary shares 125,000

Reserves
Share premium 5,000
 Revaluation reserve 3,000
Equity component on convertibles 1,800
Retained profit 97,040

231,840

Non-current Liabilities
8% Convertible loan stock (8m+interest 160k) 8,160
Finance lease creditor 4,600
Deferred taxation 6,250 19,010

Current Liabilities
Trade payables 18,500
21

Bank overdraft 6,000

Tax payable 1,000
Lease creditor payable 2,000
Loan factor (9,500+250) 9,750
Interest payable on loan stock 800 38,050

288,900
Non-Current Assets
Freehold land (revalued) 120,000
Leasehold building 42,000
Plant and machinery (55+8-22-1.6) 39,400

201,400
Intangibles
Computer system 28,000

Current Assets
Inventory 12,000

Trade receivables (38+9.5) 47,500

59,500

288,900
Maradona Bhd Statement of
Changes in Equity For the year
ended 31.12.x4

Share Share Revaluatio Retained Equity

Capital premium n reserve profit in CLS
RM000 RM000 RM000 RM000 RM000
1.1.Year4 100,000 3,000 28,740
Share issue 25,000 5,000
Convertible LS 2,000
Deferred tax (200)
Comprehensive 69,740
income
Dividend (1,440)
 31.12.Year 4 125,000 5,000 3,000 97,040 1,800

4.9 Petra
Petra
Statement of Profit or Loss and Other Comprehensive Income for the
year ended 30.9x5

RM000
Turnover (197,800-12,000) 185,800
22

Cost of sales 114,000-(8,000- (128,100)

3,000)+2,000+6,000+8,000+6,000+3,100 (depr + amort.,
impairment etc)
Gross profit 57,700
Other income commission 1,000
58,700
Distribution expenses (17,000)
Administrative expenses (18,000)
Operating profit 23,700
Finance cost (3,000)
Profit before tax 20,700
Taxation (1,000-500+2,600) (3,100)
Profit for the year 17,600

Petra Statement of Financial

Position as at 30 September
x5

Share capital
RM000 RM000

Ordinary shares of 25 sen each 40,000

Reserves
Share premium 12,000
Retained profit 34,000+17,600 51,600

103,600
Non-current Liabilities
6% loan note 50,000
Deferred taxation 17,600 67,600

Current Liabilities
Trade payables 15,000
Interest payable 1,500 16,500

187,700

Non-Current Assets
Property, plant and equipment 150,000-44,000 106,000

Intangibles
Development costs 40,000-22,000 18,000
 124,000
Current Assets
Inventory 21,300
Trade receivables 24,000
Tax recoverable 500
23

Bank 11,000

Held for sale plant 6,900

63,700

187,700

4.10
New Style Bhd
Statements of Profit or Loss and Other Comprehensive Income for
the year ended 31.12.x6

RM000
Turnover (-370k) 24,630

Cost of sales (-1m) (6,130)

Gross profit 18,500
Other income 200

18,700

Selling expenses (3,670)

Administrative expenses (+560k) (2,960)
Operating profit 12,070
Finance cost (800)
Interest income 250
Dividend income 120
Foreign currency gain 500
Changes in fair value of financial instruments 300

Profit before tax 12,440

Taxation (3.048m+500k-428k) (3,120)

Profit for the period 9,320
Other comprehensive income

Deficit on revaluation of land (2,000)

Total comprehensive income 7,320

Basic earnings per share (sen) 51.7 sen

EPS 9,320= 51.7 sen

18,000

Statement of Changes in Equity

For the year ended 31.12.x4
Equity shares
 Share premium
Revaluatio n reserve
Retained profit

RM000 RM000 RM000 RM000

1.1.Year 6 18,000 2,000 3,000 30,740
Share issue 750 1,250

Comprehensive income

(2,000) 9,320
24

Dividend (1,440)
31.12.Year 6 18,750 3,250 1,000 38,620

New Style Bhd.

Statement of Financial Position as at 31.12.x6

Share capital

RM000 RM000
Ordinary shares 18,750

Other components of equity

Share premium 3,250
Revaluation reserve 1,000
Retained profit (30,740+9,320-1,440) 38,620

61,620
Non-current Liabilities
Term loan 4,000
Offshore loan 4,500
Deferred taxation 2,072 10,572

Current Liabilities
Trade payables 8,500
Bank overdraft 1,000
Tax payable 48 9,548

81,740

Non-Current Assets
Freehold land (revalued) 28,000
Building 12,000
Plant and machinery 10,000

50,000
Intangibles
Research and development 7,000

Investments 5,900
Current Assets
Inventory 1,500
Trade receivables (-560k) 9,740
Other receivable insurance 1,200

Bank 6,400
18,840

81,740
25

4.11
Fresco
Statements of Profit or Loss and Other
Comprehensive Income for the year ended 31
March x12

Turnover RM000
350,000
Cost of sales (311,000)
Gross profit 39,000
Distribution costs (16,100)
Administrative expenses (26,900+3,000 re fraud) (29,900)
Finance cost( 2,300 + 300 + 56) (2,656)
Loss before tax (9,656)
Taxation (2,400+200-800) 1,800
Profit for the period (7,856)
Other comprehensive income
Revaluation of leasehold property 4,000
Total comprehensive income (3,856)

Statement of Changes in Equity

For the year ended 31 March x12

Equity Share Revaluation Retained Total

1 April x11 shares premium reserve profit
55,100
RM000 RM000 RM000 RM000
45,000 5,000 nil 5,100
Prior period adj (1,000) (1,000)
Restated 4,100
Share issue 9,000 4,500 13,500
Options 40 40
Comprehensive 4,000 (7,856) (3,856)
loss
Transfer (500) 500
31 March 12 54,040 9,500 3,500 (3,256) 63,784

Fresco
Statement of Financial Position as at 31 March x12
RM000 RM000
Share capital
Ordinary shares 54,000

26

Options 40
 Other components of equity
Share premium 9,500
Revaluation reserve 3,500
Retained profit (3,256)

63,784

Non-current Liabilities
Finance lease obligation 15,230

Deferred taxation
8% Convertible loan notes

3,000
568 18,798

Current Liabilities
Trade payables 27,300
Finance lease obligation (19,300-15,230) 4,070
Bank overdraft + 48 interest 1,448 32,818

115,400
Non-Current Assets
Property, plant and equipment 62,700
Current Assets
Inventory 25,200
Trade receivables (-4,000 fraud) 25,100

Tax refund 2,400

52,700

115,400
Basic EPS
Loss per profit or loss 7.856 million
Weighted average number of shares 99 million

Loss per share 7.9sen

Cost of sales
RM000

Per question 298,700

Amortisation of leased property 4,500
Amortisation of leased plant 5,000
Depreciation of other plant and equipment 2,800

311,000

Non-current assets
RM000

Carrying amount 1 April x11 (48,000-16,000) 32,000

 Revaluation reserve 4,000
27

Revalued amount 36,000

Amortisation (over 8 years) 4,500
Carrying amount 31 March x11 31,500

RM500,000 (4,000/8) of the revaluation surplus will be transferred to retained earnings.

Leased Plant
RM000

Fair value 1 April x11 25,000

Deposit (2,000)

23,000
Interest 2,300

Payment (6,000)
Obligation 31 March x12 19,300
Interest 10% 1,930

Payment 31 March x13 (6,000)

Lease obligation 31 March x13 18,230

Summary of property, plant and equipment

RM000

Lease property 31,500

Own property (47,500-33,500-2,800) 11,200
Leased plant 20,000

Carrying amount 31 March x12 62,700

Deferred tax

RM000
Provision required (12,000 x 25%) 31 March x12 3,000

Provision 1 April x11 (3,200)

Reduction (credit to profit or loss) 200

Theoretical ex-rights price

Shares RM RM
Holding 100 1.20 120
Rights taken up 20 0.75 15

120 135

Theoretical ex-rights price 1.125 (RM135/120)

 Weighted average number of shares
1 April x11 to 31 December x11 90 million x 1.20/1.125x9/12 72 million
1 January x1q2 to 31 March x12 108 million x 3/12 27 million

99 million
28

4.12 Quincy
Quincy

Statements of Profit or Loss and Other

Comprehensive Income for the year ended 30
September x12

Turnover (213,500 1,600) RM000

211,900
Cost of sales (147,300)
Gross profit 64,600
Distribution costs (12,500)
Administrative expenses (19,000-1,000) (18,000)
Loss on fair value of equity instruments (1,300)
Investment income 400
Finance cost (1,920)
Loss before tax 31,280
Taxation (7,400+1,100-200) (8,300)
Profit for the period 22,980
Other comprehensive income
Gain on revaluation of property 18,000
Total comprehensive income 40,980

Statement of Changes in Equity

For the year ended 30 September x12

Equity shares

Revaluation reserve

Retained profit

Total

RM000 RM000 RM000

1 October x11 60,000 nil 25,500 85,500

Total comprehensive income

18,000 22,980 40,980

Transfer (1,000) 1,000

Dividend paid (19,200) (19,200)
 30 Sept x 12 60,000 17,000 30,280 107,280

Quincy
Statement of Financial Position as at 30 September x12

Share capital
RM000 RM000

Ordinary shares 60,000

29

Other components of equity

Revaluation reserve 17,000
Retained profit 30,280

107,280
Non-current Liabilities
6% loan note 24,420
Deferred revenue 800
Deferred taxation 1,000 26,220
Current Liabilities
Trade payables 36,700
Deferred revenue 800
Tax payable 400 37,900

171,400

Non-Current Assets
Property, plant and equipment 99,500

Equity financial asset investment 15,700

115,200
Current Assets
Inventory 24,800
Trade receivables 28,500

Bank 2,900

56,200

171,400

Sales
Deferred revenue includes the normal profit margin of 25%. At year end there are two
more years of servicing work. Therefore, Rm1.6 million (600 x2) x (100/75) is treated as
deferred income split equally between current and non-current.

Cost of sales
RM000

Per question 136,800

Depreciation of building 3,000
Depreciation of other plant 7,500
 147,300

Non-current assets

Land Building
RM000 RM000

Carrying amount 10,000 (40,000-8,000) 32,000

Revalued amount (12,000) (60,000-12,000) (48,000)

Gain on revaluation 2,000 16,000
Building depreciation 48,000/16years
30

Transfer from RR to Retained profits

= 3,000
16,000/16
= 1,000
Loan Note
The finance cost is the effective interest rate of 8% on the carrying amount of the loan of
RM24 million.
The loan is RM24 million after deducting the transaction costs of RM1 million.
The finance cost amounts to RM1,920,000 but the amount payable is 6% x RM25 million
of RM1.5 million. The difference of RM420,000 is added to the carrying amount of the
loan.

Deferred tax

RM000
Provision required (5,000 x 20%) 30 September x12 1,000

Provision 1 October x11 (1,200)

Reduction (credit to profit or loss) 200

4.13
Candel _ Statements of profit or loss and other comprehensive income for the year
ended 30 September x8
RM000
Revenue (-2,500) 297,500
Cost of sales (225,400)

Gross profit 72,100

Distribution costs (14,500)
Administrative expenses (100-400) (21,900)
Operating profit 35,700
Finance cost (1,400)
Profit before tax 34,600
Taxation (11,600)
Profit after tax 22,700
 Other comprehensive income (4,500)
Loss on revaluation of property
Total comprehensive income 18,200

Candel Statement of changes in equity for the year ended 30 September x8

Equity shares

Revaluation reserve

Retained profit

Total

RM000 RM000 RM000 RM000

1.10.Year7 50,000 10,000 24,500 84,500

Comprehensive income

(4,500) 22,700 18,200

Dividend (6,000) (6,000)
31

30.9.Year 8 50,000 5,500 41,200 96,700

Candel - Statement of financial position as at 30September x8

RM000 RM000
Equity and liabilities
Equity shares of 25 sen 50,000

Revaluation reserve 5,500

Retained profit 41,200 46,700

96,700

Non-current Liabilities
Deferred taxation 6,000

8% redeemable preference shares (+400) 20,400 46,700

Current Liabilities
Trade and other payables (+100-400) 23,500
Bank overdraft 1,300
Tax payable 11,400 36,200

159,300

Non-Current Assets
 Property, plant and equipment 81,400
Development cost 14,800

96,200

Current Assets
Inventory 20,000

Trade receivables 41,200

63,100

159,300

Working:
i.

RM000

Cost of sales 204,000

Depreciation leasehold 2,500

- plant 9,600
Loss on disposal of plant 1,500
Amortisation development cost 4,000
R&D written off 3,800
225,400

ii.
Finance cost: Preference dividend 12% x 20 million x = RM1.2 million.
Amount paid 8% x 20 million x RM800,000
Difference of RM400,000 added carrying amount of preference shares.
32

iii.
Non-current assets RM000
Leasehold
Valuation 1.10.x7 50,000
Depreciation (2,500)

47,500
Valuation on 30.9.x8 43,000

Revaluation deficit 4,500

Plant and equipment
Trial balance 52,000
Disposal (4,000)
Depreciation (9,600)

38,400

Development
Carrying amount (20,000 - 6,000) 14,000
Amortised for the year 20,000 x 20% (4,000)
Capitalised during the year (800 x 6 months) 4,800
 14,800

4.14
Memory Bhd
Statement of Profit or Loss and Other Comprehensive
Income for the year ended 31 December 20x3

RM
Sales revenue 89,700,000
Cost of sales (W1) (51,414,000)
Gross profit 38,286,000
Other operating income -
Administrative expenses (W1) (7,814,400)
Distribution expenses (7,440,000)
Other operating expense (W1) (800,000)
Profit from operations 22,231,600
Finance expense (W1) (180,000)

Profit before tax 22,051,600

Taxation (1,980,000)
Profit for the year 20,071,600
Other Comprehensive income
Revaluation surplus 2,400,000
Revaluation Deficit (200,00)
Total Comprehensive Income 22,271,600

W1
33

Cost of
sales Admin Others Finance
As per draft 50,940,000 6,730,000 400,000
interim dividend (360,000)
lease rental (310,000)
lease interest expense see below 140,000
depreciation expense - building 432,400
depreciation expense - machinery 784,000
depreciation expense - vehicles 652,000
revaluation deficit -land 800,000

51,414,000 7,814,400 800,000 180,000

Lease interest:
Total lease rentals 310,000 x 5 = 1,550,000
(-) FV of machine (1,200,000)
Total interests 350,000

Interest expense for the year = 350,000 x 4/10 = 140,000

Memory Bhd
Statement of changes in equity for the year ended 31 December 20x3

share capital
 revaluation reserve

retained earnings

RM RM RM

As at 1 January 2011 33,270,000

4,728,000
-

PYA (Revaluation of land) 200,000 (200,000)

Revaluation of building 2,400,000

Profit for the year 20,071,600

Excess depreciation (50,000) 50,000

Interim dividend (360,000)

Revaluation deficit on land - (200,000)

33,270,000 2,350,000 24,289,600

As at 31 December 2011
Memory Bhd
Statement of Financial Position as at 31 December 20x3
34

NON CURRENT ASSETS:

RM RM
Property, plant and equipment 31,506,800
Investments 13,000,000
Goodwill 2,220,000
46,726,800

CURRENT ASSETS:
Inventory 4,960,000
Trade receivables 7,532,000
Bank and cash 7,000,000 19,492,000
66,218,800

SHAREHOLDERS EQUITY:
Share capital 30,000,000
Share premium 3,270,000
Retained earnings 24,289,600
Other reserves 2,350,000

NON CURRENT LIABILITIES

Long term loan 2,000,000

Deferred tax liability 2,240,000

Lease creditor 310,000 4,575,000
CURRENT LIABILITIES
Trade and other payables 982,000
Accruals and provisions 57,200
Lease creditor 720,000

1,759,200
66,218,800
PPE Cost/Valuation

Land Building Machinery Vehicles

As at 1 January 20x3 6,000,000 19,120,000 7,680,000 3,260,000
Government grant (1,040,000)
Additions-leased machinery 1,200,000
Revaluation surplus (2,200,000)
Revaluation deficit (1,000,000)

As at 31 December 20x3 5,000,000 21,320,000 7,840,000 3,260,000

Accumulated depreciation
As at 1 January 20x3 764,800 1,840,000 1,640,000
Revaluation (200,000)
Charge for the year - see 432,400 784,000 652,000
35
below
As at 31December 20x3 - 997,200 2,624,000 2,292,000
Carrying amount as at
31December 20x3 5,000,000 20,322,800 5,216,000 968,000

Depreciation:
Revalued Building (7,200,000/48 years) 150,000
Other Building
(14,120,000/50 years) 282,400
Total depreciation 432,400

Revaluationofbuilding
Cost
5,000,000 (-) Acc-dep
(5,000,000 x 2) 200,000 JournalEntry
50 --------------- Dr Building
2,200
C.A 4,800,000 Acc.dep
200
Revalued 7,200,000 Cr RR 2,200
Surplus 2,400,000 RR 200
Excessdepreciation

Old depreciation = RM5,000,000 = RM100,000

50
New depreciation = RM7,200,000 = 150,000
48 excess 50,000