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Azaraza Sdn Bhd Question 1 Stmt of Comp Inc for the year ended 31 May 2008 RM000 RM000 Sales 11,476 Less : Returns inwards (249) Less : Cost of sales Opening inventories Purchases Less : Return outwards Less : Closing inventories Gross Profit Add: Income Discount received Interest received Less : Expenditure Heat & light Building insurance Telephone Postage Discounts allowed Stationery Bad debts written off Warehouse rent [45 - (30 x 6/12 mths)] Wages & salaries Staff bonus Motor expenses (43 + 5) Interest (164 + 12) Inc. in prov. for doubtful debts(14293)

RM000 11,227

Net Profit before tax Less : Tax Profit for the year

1,209 (210) 999

1,294 9,726 (341) 9,385 10,679 (1,471) 8 4 28 16 12 8 14 23 274 30 97 23 48 176 49 11 8 5

(9,208) 2,019 12 2,031

Azaraza Sdn Bhd Working Notes on the Appropriation of Profits for the year ended 31 May 2008 RM000 RM000 Profit for the year 999 Less : Appropriation Interim dividend paid 10 Proposed final dividend (1,000,000 x RM1 x 6%) 60 (70) 929 Retained profits b/d 550 Retained profits c/d 1,479

Depn : Motor vehicles [(78 -34) x 25%] Depn : office equipment [(47-15 x25%] Depn : furniture (25 / 5 years)

(822)

Question 2 F W Sdn Bhd Statement of Comprehensive Income for the year ended 31 Dec 2008 RM RM RM Sales 98,200 Less : Cost of sales Opening inventories 22,690 Purchases 53,910 Add : Carriage inwards 1,620 55,530 78,220 Less : Closing inventories (27,220) (51,000) Gross profit 47,200 Less : Expenditure Salaries & wages 9,240 Motor expenses 8,120 Rates & insurances 2,930 General expenses 560 Directors remuneration 6,300 Debenture interest 3,000 Depreciation : Motor vehicles 3,000 Depreciation : Equipment 1,200 (34,350) Net profit before tax 12,850 Less : Tax (5,000) Profit for the year 7,850

F W Sdn Bhd Working Notes on the Appropriation of Profits for the year ended 31 Dec 2008 RM RM RM Profit for the year 7,850 Less : Appropriation Transfer to general reserves 5,000 Interim dividend paid: Ordinary shares 3,500 Proposed final dividends: - Preference shares (20,000 x RM1 x 10%) 2,000 - Ordinary shares (70,000 x RM1 x 10%) 7,000 9,000 (17,500) (9,650) Retained profits b/d 16,940 Retained profits c/d 7,290

3 F W Sdn Bhd Statement of Financial Position as at 31 Dec 2008 RM Non-current assets Building, at cost Equipment, at cost Less: Accum. Depreciation (2,400 + 1,200) Motor vehicles, at cost Less: Accum. Depreciation (5,160 + 3,000) Current assets Inventories Trade Receivables Cash at Bank Less : Current liabilities Trade payables Accrued dividends Debenture interest payable Provision for taxation Net current assets Financed by: Authorised share capital 20,000 10% Preference shares of RM1 each 100,000 Ordinary shares of RM1 each Issued share capital 20,000 10% Preference shares of RM1 each 70,000 Ordinary shares of RM1 each Reserves Share premium General reserve (5,000 + 5,000) Retained profits Shareholders equity Non-current liabilities 10% Debentures (repayable 2012) 14,000 10,000 7,290 11,370 9,000 1,500 5,000 8,000 (3,600) 17,200 (8,160) RM 110,500 4,400 9,040 27,220 18,610 8,390 54,220 123,940 RM

151,290

(26,870) 27,350 151,290 20,000 100,000 120,000 20,000 70,000 90,000

31,290 121,290 30,000

Extra exercise questions (for students own practice) Question 3 ABL Sdn Bhd Statement of Comprehensive Income for the year ended 31 Dec 2008 RM RM Gross Profit 145,000 Add : Income Discount received 1,540 146,540 Less : Expenditure Administrative expenses 44,000 Selling and distribution expenses 56,000 Discount allowed 500 Debenture interest 2,500 Legal fees 1,200 Directors fee 5,600 Depreciation : Land & buildings (100,000 x 10%) 10,000 Depreciation : Plant & machinery (50,000 x 15%) 7,500 (127,300) Net profit before tax 19,240 Less : Tax (5,000) Profit for the year 14,240 ABL Sdn Bhd Working Notes on the Appropriation of Profits for the year ended 31 Dec 2008 RM RM Profit for the year 14,240 Less: Appropriation Transfer to general reserve 5,000 Preference share dividend (20,000 x RM1 x 6%)x 75% 900 Ordinary share dividend (60,000 x RM1 x 10%)x 75% 4,500 (10,400) 3,840 Retained profits b/d 7,000 Retained profits c/d 10,840

ABL Sdn Bhd Statement of Financial Position as at 31 Dec 2008 RM Non-current assets Land & building, at cost 100,000 Less: Accum. Depreciation (30,000) Plant & machinery, at cost 50,000 Less: Accum. Depreciation (15,000) Current assets Inventories Trade Receivables Cash at Bank Cash in Hand Less : Current liabilities Trade payables Provision for tax Accrued dividend: Pref. Shares Accrued dividend: Ord. Shares Net current assets Financed by: Authorised & issued share capital 60,000 Ordinary shares of RM1 each 20,000 6% Preference shares of RM1 each Reserves Share premium General reserve (10,000 + 5,000) Retained profits Non-current liabilities 44,000 5,000 900 4,500

RM 70,000 35,000

RM

105,000 31,000 42,240 35,000 1,000 109,240

(54,400) 54,840 159,840

60,000 20,000 80,000 4,000 15,000 10,840 29,840 109,840

5% Debentures

50,000 159,840

Question 4 Falta Ltd Statement of Comprehensive Income for the year ended 30 April 2005 Sales 880,426 Less: Returns inwards (18,400) 862,026 Less: Cost of goods sold Opening inventories Purchases Add: Carriage inwards Less: Closing inventories Gross profit Less: Expenditure Loan note interest (1,600 + 1600) Wages and salaries Rent, rates & insurance (16,240 + 802) Discounts allowed Directors remuneration (82,400 + 6,000) Depn: Equipment (225,000 x 20%) Depn: Motor vehicles (57,200 x 25%) Profit for the year 102,994 419,211 1,452 420,663 523,657 (111,317) (412,340) 449,686 3,200 123,289 17,042 3,415 88,400 45,000 14,300 (294,646) 155,040

Retained profits b/d Retained profits c/d Falta Ltd Statement of Financial Position as at 30 April 2005 Non-current assets Equipment at cost 225,000 Less: Accum. Depreciation (32,600+45,000) (77,600) Motor vehicles at cost 57,200 Less: Accum. Depreciation (18,200+14,300) (32,500) Current assets Inventory Trade receivables Bank Cash Less: Current liabilities Trade payables Accrued dividends Accrued expenses (802 + 6,000 + 1,600) Net current assets Financed by: Issued capital 300,000 Ordinary shares of 50p each 50,000 12% Preference shares of 1 each Reserves General reserve (15,000 + 5,000)
Non-current assets replacement reserve (30,000+10,000)

107,040 12,411 119,451 147,400 24,700 111,317 227,219 4,973 62 343,571 172,100

54,818 33,000 8,402

(96,220) 247,351 419,451 150,000 50,000 200,000 20,000 40,000 119,451

Falta Ltd Working Notes on the Appropriation of Profits for the year ended 30 Apr 2005 Profit for the year 155,040 Less: Appropriation Proposed final dividends: - Ordinary shares (300,000 x 0.50 x 18%) 27,000 - Preference shares (50,000 x 1 x 12%) 6,000 33,000 Transfer to general reserve 5,000 Transfer to non-current assets replacement reserve 10,000 (48,000)

Retained profits Non-current liabilities 8% loan notes

179,451 40,000

419,451