4 marks iii Statement of Financial Position as at 31 December 2013 9 marks iv 1

4 marks iii statement of financial position as at 31

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(4 marks) iii. Statement of Financial Position as at 31 December 2013. (9 marks) iv. 1. A note on property, plant and equipment. (8 marks) 2. State the accounting treatment for the damaged portion of the company’s building ground floor due to fire. (2 marks) (Total: 30 marks) 2
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SOLUTION i. Statement of Comprehensive Income Tamar Bhd Statement of Comprehensive Income for the year ended 31 December 2013 RM Revenue 36,096,650 Cost of sales (5,120,000) Gross profit 30,976,650 Distribution expenses (3,200,000) Administrative expenses (6,653,550) Finance costs (200,000) Profit before tax 20,923,100 Income tax expense (910,000) Net profit after tax 20,013,100 Other comprehensive income: Deficit on revaluation of land (550,000) Surplus on revaluation of building 1,800,500 Total comprehensive income 21,263,600 Workings: Admin expenses 2,680,500+2,030,050+1,330,000+168,000 + 285,000 + 160,000 Depreciation expenses + misappropriation of funds + Provisions ii. Statement of Changes in Equity for the year ended 31 December 2013 Share Capital Share Premium Rev. Reserve Ret. Earnings RM RM RM RM Bal as at 1.1. 2013 15,000,000 6,900,000 570,000 3,343,750 Prior year adjustments (285,000) Restated balance 15,000,000 6,900,000 570,000 3,058,750 Profit for the year 20,013,100 Deficit (550,000) Surplus 1,800,500 Transfer to RE (180,050) 180,050 Interim dividend (450,000) Bal as at 31.12. 2013 15,000,000 6,900,000 1,640,450 22,801,900 3
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iii. Statement of financial position Non-current Assets RM Property, plant and equipment 35,072,450 Investment property 2,000,000 Biological asset 1,100,000 Intangible assets 5,500,000 Current Assets Inventory 1,350,000 Trade receivables (2,950,000 – 570,000) 2,380,000 Tax recoverable (1,350,000-250,000-910,000) 190,000 Bank 3,040,000 50,632,450 Equity Share Capital 15,000,000 Retained earnings 22,801,900 Other reserves 8,540,450 Non-current Liabilities 10% Bank loan 2,000,000 Current Liabilities Trade payables 2,030,100 Accrual 100,000 Provisions for legal claim 160,000 50,632,450 iv. Notes to account - Property, Plant and Equipment Land Building Pl & Mach MV TOTAL Cost/Valuation RM RM RM RM RM 1 January 2013 5,200,000 20,000,000 13,300,000 2,100,000 Elimination (1,500,000) Revaluation (550,000) 1,800,500 31 December 2013 4,650,000 20,300,500 13,300,000 2,100,000 Accum Depreciation 1 January 2013 1,500,000 1,330,000 420,000 Elimination (1,500,000) Charge for the year 2,030,050 1,330,000 168,000 31 December 2013 2,030,050 2,660,000 588,000 Carrying amount 4,650,000 18,270,450 10,640,000 1,512,000 35,072,450 Notes on significant event - Accounting treatment for damaged portion of the company’s building due to fire. QUESTION 2 (FAR460, UiTM, DECEMBER 2015) 4
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Setinggi Bhd, a public listed manufacturing company, has been in operation since 2001. The following trial balance has been extracted from its main office which is based in Klang. Setinggi Bhd Trial Balance as at 31 December 2014 Debit Credit RM’000 RM’000 Sales 514,005 Cost of sales 204,755 Selling and distribution costs 40,830 Administration costs 72,800 Finance cost 2,620 Other income 3,380 Gain due to change in fair value of investment properties 2,200 Taxation paid 6,570 Trade payables 28,780 Tax recoverable – 1 Jan 2014 1,660 Trade receivables 59,700 Inventories 37,820 Bank 25,900 Freehold land at valuation – 1 Jan 2014 17,800 Investment properties at fair value 17,530 Intangible assets 15,600 Biological assets 73,340 Other non-current assets – 1 Jan 2014 126,800 Ordinary shares capital 98,900 Retained profit – 1 Jan 2014 45,710 Asset revaluation reserve 750 8% CIMB loan – received 1 July 2014 10,000 703,725 703,725 Additional information: 1. Details of other non-current assets at 1 January 2014 are as follows: Cost Accumulated Depreciation Carrying Amount RM’000 RM’000 RM’000 Buildings 88,000 13,700 74,300 Machinery 68,000 22,300 45,700 Motor vehicles 10,000 3,200 6,800 166,000 39,200 126,800 Non-current assets are depreciated using the straight-line method on a yearly basis.
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