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POLITEKNIK TUANKU

SULTANAH BAHIYAH

COMMERCE DEPARTMENT
P 4201
Financial Accounting 3

Presentation (Chapter 3)

Name: Phanuwat A/L Suni 16DAT08F1018

Kum Pha A/L Ke Ang 16DAT08F1015

Vichai A/L Eh Bok 16DAT08F1017

Lecture: Pn. Hasmida Bt Mohamad Hassan

Submit Date: 29 August 2010


Question 1

The information below relating to Syarikat Haqimi Berhad for the year ended 31
December 2007.

Jan 15 Bought 7 500 units RM1 ordinary shares in Hamka Berhad at RM 1.40 each.

Feb 14 Bought RM20 000 ordinary shares in Faez Berhad at RM15 000

Apr 28 Hamka Berhad issued two units bonus shares for every five units held.

May 31 Sold 4 200 units ordinary shares in Hamka Berhad at RM1.10 each.

Jun 30 Received 2. 5 % dividend from Faez Berhad

Nov 30 Hamka Berhad paid an interim dividend of 4% on the existing ordinary


shares, and made one right issue for every three held at RM1. 20 each.
Haqimi Berhad took up ½ of its right and sold the remaining rights for RM0.
30 each.

Dec 20 Sold 3 150 units ordinary shares in Hamka Berhad at RM1. 40 each.

Dec 30 Received 3 % ordinary shares dividend from Faez Berhad.

It is the policy of Haqimi Berhad to use the weighted average method of calculation the
cost of each investment sold, when determining the profit or loss rising at the time of
each disposal.

Prepare the investment account in the books of Syarikat Haqimi Berhad for the year
ended 31 December 2007.
Investment Account – Hamka Berhad
Date Particular Nom Incom Cost Date Particula Nom Incom Cost
e r e
(RM) (RM) (RM) (RM) (RM) (RM)
15/01/07 Bank - 31/05/07 Bank -
Bought 7500 - 1050 Sold 4200 - 4620
0
28/04/07 Bonus 3000 - - 30/11/07 Bank - 252 -
31/05/07 Profit on Bank - - 315
sale - - 420
30/11/07 Bank 1015 - 1260 20/12/07 Bank 3150 - 4410
20/12/07 Profit on
sale - - 1305
30/12/07 Profit & 31/12/07 Balance
Loss - 252 - c/d 4200 - 4140
Acct
1155 252 1348 1155 252 13485
0 5 0
01/01/08 Balance
b/d 4200 2880

Investment Account – Faez Berhad


Date Particular Nom Incom Cost Date Particula Nom Incom Cost
e r e
(RM) (RM) (RM) (RM) (RM) (RM)
14/02/07 Bank - 31/06/07 Bank -
Bought 2000 - 1500 dividen - 500 -
0 0
30/12/07 Profit & 31/12/07 Bank -
Loss - 1100 - dividen - 600 -
Acct
31/12/07 Balance
c/d 2000 - 15000
0
2000 1100 1500 2000 1100 15000
0 0 0

01/01/08 Balance
b/d 2000 1500
0 0
Hamka Berhad

Date Particular Calculation


15/01/0 Bank ( Bought) 7500 x 1.4 = 10500 (Cost)
7
28/04/0 Bonus 7500 x 2/5 = 3000 (Nom)
7
31/05/0 Bank (Sold) 4200 x 1.1 = 4620 (Cost)
7
Profit on sale 10500
(7500+3000 X 4200 = 4200
)
4620 – 4200
= 420 (Cost)

30/11/0 Bank (dividen) (7500+3000)-4200=6300


7 6300 x 4% = 252 (Income)

Bank (Right Issue) 6300 x 1/3 = 2100


Sold 2100 / 2 = 1050
1050 x 0.3 = 315 (Cost)

Bank (Held) 6300 x 1/3 = 2100


2100 / 2 = 1050
1050 x 1.2 = 1260 (Cost)

20/12/0 Bank (Sold) 3150 x 1.4 = 4410 (Cost)


7
Profit on sale (10500+1260+420) –
(4620+315) X 3150 = 3105
(7500+3000+1050) – 4200
4410 – 3105 = 1305(Cost)

Date Particular Calculation


31/06/07 Bank – dividen 20000 x 2.5% = 500 (Income)

30/12/07 Bank – dividen 20000 x 3% = 600 (Income)

Faez Berhad
Question 2

Sekuriti Awana Berhad is an investment company located in KL. Besides its investment
activities in capital market of the Malaysian Bourse, the company made some investment in
other companies. The investment transactions for the year ended 30/06/2006 were as follows :

Date Transactions

01/07/2005 Bought RM 20,000 10% government stock at 60.5 cum-div. Interest is


payable half yearly on 1 February and August.

15/07/2005 Bought 4,000 units ordinary shares from Wawa Bhd, at nominal RM 0.50
per share at cost RM 8,000.00

01/08/2005 Received half yearly interest from 10% government stock.

15/08/2005 Wawa Bhd, declares a bonus of 2 unit share for every 2 units held.
Sekurity

Awana Berhad sold 2500 units bonus shares at cost RM 2.00 per share.

03/10/2005 Bought 5,000 units ordinary shares from MFW Berhad with nominal price of
RM 1.00 per shares at cost of RM 0.75 per share.

02/01/2006 Sold RM 12,000.00, 10% government stock at 62 ex-div.

01/02/2006 Received half yearly interest from 10% government stock.

01/03/2006 Received 20% dividend from Wawa Berhad.

01/04/2006 MFW Bhd made a right issue of 1 for every 2 shares held at RM 0.50. The
market price for the right is RM 0.25 per share.

01/06/2006 Received 20% dividend from MFW Bhd.

You are required to prepare the investment accounts as it would appear in the book of
Sekuriti Awana Bhd for the year ended 30/06/2006.

Answer :
    InvestmentAccount-10% Government Stock    
Incom
Date Particular Nom e Cost Date Particular Nom Income Cost
1/7/05 Bank-Bought 20,000 833 11,276 1/8/05 Bank-dividend - 1,000 -
2/1/06 Contra - 100 - 2/1/06 Bank-sold 12,000 - 7,440
Profit on sale - - 780 2/1/06 contra - - 100
30/6/0
6 Profit & loss - 1,400 - 1/2/06 Bank-dividend - 1,000 -
30/6/06 Balance c/f 8,000 333 4507
20,000 2,333 12,047  20,000 2,333 12,047

    InvestmentAccount-ordinary share Wawa Bhd    


Date Particular Nom Income Cost Date Particular Nom Income Cost
15/7/05 Bank-Bought 2,000 - 8000 15/8/05 Bank - sold 1,250 - 50,000
15/8/05 Bonus 2,000 - - 1/3/06 Bank - dividend - 550 -
Profit on sale - - 2,500 30/06/06 2,750 - 5,500
30/6/06 Profit & loss - 550 -
4,000 550 10,500  4,000 550 10,500

    InvestmentAccount-ordinary share MFW Bhd    


Date Particular Nom Income Cost Date Particular Nom Income Cost
3/10/05 Bank-Bought 5,000 - 3,750 1/6/06 Bank-dividend - 1,500 -
Bank-right
1/4/06 issue 2,500 - 1,250 30/6/06 Balance c/f 7,500 - 5,000
30/6/06 Profit & loss - 1,500 -

7,500 1,500 5,000 7,500 1,500 5,000

Note:
InvestmentAccount-10% Government Stock
Date Particular Calculation
01/07/2005 Bank –bought cum 20,000 x 60.5% = 12,100
NIO- 20,000 x 10%x5/12= 833
11,267

01/08/2005 Bank -dividend 20,000 x 10% x 6/12 = 1000


02/01/2006 Bank –Sold ex Sold EX: 12,000 x 62% = 7440
Control :12,000 x 10% x 1/12 = 100

Profit on sale Profit /loss = 11,267/20,000 x 12,000 = 12,000


= 6,760 vs 7,540
Profit =780
01/02/2006 Bank -dividend 20,000 x10%X 6/12 =1,000

30/06/2006 Profit & loss 2005 : 20,000 x 10% x 6/12 = 1,000


2006 : (20,000 – 12000) x 10%x6/12 = 833
1,400

InvestmentAccount-ordinary share Wawa Bhd


Date Particular Calculation
15/07/2005 Bank –Bought 4,000 x 0.50 = 2,000-Nom
ordinary share 8,000-Cost

15/08/2005 Bonus 2/2 x 4,000 = 4,000 unit


4,000 x 0.50 = 2,000-bonus
Bank-sold (o/s) 2,500 x 0.50 = 1,250-Nom
2,500 x 2.00 = 5,000-Cost
Profit on sold Profit / loss: 8,000 / 4,000 x 1250
= 2,500 vs 5,000

Profit =2,500

01/03/2006 Bank –dividend (4,000-1250) x 20% =550

InvestmentAccount-ordinary share MFW Bhd


Date Particular Calculation
03/10/20065 Bank –bough (o/s) 5,000 unit X 1.00= 5,000-nom
5,000 unit x 0.75= 3,750-cost
01/04/2006 Bank –right issue ½ X 5,000 = 2,500 unit
2,500 unit x 1 =2,500-nom
2,500 unit x 0.50 =1,250-cost

01/06/2006 Bank -dividend 20% x ( 5,000 x 2,500) = 1500

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