Practice Questions

Question 1

The Trial Balance of LAL Berhad at 31 March 2014 is as follows:

DR CR
RM RM
(‘000) (‘000)
Ordinary Share capital (RM1 per share) 500
Inventory at 1 April 2013 150
Trade receivables 400
Trade payables 210
Allowance for receivables 20
Share premium 70
Retained earnings b/f 181
Irrecoverable debts 30
Equipment at cost 360
Motor vehicles at cost 450
Bank 198
Cash in hand 25
Sales 1,500
Purchases 900
Returns 10 18
Carriage inwards 8
Wages & salaries 120
Rent, assessment and insurance 100
Discounts 28 30
Directors’ remuneration 30
Accumulated depreciation:
- Equipment 100
- Motor vehicles 180
2,809 2,809
Additional information:

(1) Inventory at 31 March 2014 was valued at RM160,000. Included in this inventory were
goods costing RM5,000 which has been totally damaged and has no value.

(2) Allowance for receivables of 10% is to be provided.

(3) A dividend of 5 sen per share on the ordinary shares was proposed.

(4) Rent of RM5,000 and director’s remuneration of RM2,000 is outstanding. Insurance

amounting to RM1,000 has been paid in advance.

(5) The company uses the straight line method of depreciation for the equipment at 10% per
annum and for the motor vehicles at 20% per annum.

(6) Corporate tax of RM45,000 is to be provided.

Required:

(a) Prepare an Income Statement for the year ended 31 March 2014.

(b) Prepare a Statement of Financial Position as at 31 March 2014.

Question 2

The following is the Trial Balance of Kirin Sdn Bhd as at 31 December 2014:

DR CR
(RM’000) (RM’000)
Ordinary share capital of RM1.00 each 2,000
6% Preference share capital of RM1.00 each 700
Building at cost 4,000
Accumulated depreciation – building 300
Motor vehicles at cost 500
Accumulated depreciation - motor vehicles 320
Fixtures & fittings at cost 480
Accumulated depreciation – fixtures & fittings 220
Inventory at 1 January 2014 200
General reserve 160
Accumulated profit 300
Trade receivables and Trade payables 600 400
Share Premium 200
Purchases and Sales 2,780 4,200
Allowance for receivables 25
Salaries & wages 300
Utility expenses 150
5% debentures ( redeemable in Dec 2020 ) 400
Bank 202
Irrecoverable debts expenses 25
Discounts 25 23
Debenture interest 10
Disposal of motor vehicle 24

9,272 9,272
The following adjustments have not been accounted for:

(1) Inventory as at 31 December 2014 was RM 180,000. Included in this inventory, were
goods costing RM 8,000 which were damaged and can only be sold as scrap at an
estimated price of RM 4,000.

(2) A vehicle costing RM45,000 with an accumulated depreciation of RM21,000 was sold for
RM24,000 during the year. It is the company’s policy not to provide depreciation in the
year of disposal.
(3) Depreciation of assets are as follows :

(i) Building at 2% p.a. on cost;

(ii) Motor vehicle at 20% p.a. straight line method
(iii) Fixtures & fittings at 10% p.a. on cost.

(4) Additional debt of RM10,000 is irrecoverable and allowance for receivables is maintained
at 5% of the year end balance of trade receivables.

(5) Under utility expenses, electricity charges of RM1,000 are still outstanding, while prepaid
sewage cleaning charges amounted to RM2,000

(6) A proposed ordinary dividend of 10 sen per share is to be provided.

(7) Corporation tax of RM 150,000 is to be provided for the year.

Required:

(a) Prepare the Statement of profit or loss for the year ended 31 December 2014.

(b) Prepare the statement of financial position as at 31 December 2014.

Question 3

The Trial Balance of SAGARIA Berhad as at 31 December 2015 is as follows:

DR CR
RM RM
(‘000) (‘000)
Ordinary Share capital (40 sen per share) 600
Inventory at 1 January 2015 190
Trade receivables 495
Trade payables 209
Allowance for receivables 22
Share premium 70
Short Term loan 150
Loan interest 4
Retained earnings b/f 153
Irrecoverable debts expenses 50
Equipment at cost 360
Motor vehicles at cost 480
Disposal of motor vehicle 40
Bank 278
Cash in hand 36
Sales 1,473
Purchases 859
Returns 17 18
Carriage inwards 19
Wages & salaries 130
Rent, assessment and insurance 124
Discounts 28 32
Directors’ remuneration 30
Accumulated depreciation:
- Equipment 108
- Motor vehicles 225
3,100 3,100
You are given the following additional information:

(2) Inventory at 31 December 2015 was valued at RM168,000 which includes goods costing
RM7,000 which has been totally damaged and has no value.

(3) The RM150,000 loan, at 8% per annum interest, was taken on 1 February 2015.

(4) An irrecoverable debt of RM5,000 is to be written off. Allowance for receivables of 10%
is to be provided.

(5) Rent of RM4,000 and director’s remuneration of RM3,000 is outstanding. Insurance

amounting to RM2,000 has been paid in advance.

(6) The straight line method of depreciation is used for both the equipment at 15% per annum
and for the motor vehicles at 20% per annum.
A vehicle costing RM60,000, with an accumulated depreciation of RM25,000 was sold of
for RM40,000. No depreciation is provided for assets sold during the year.

(7) A dividend of 5 sen per share on the ordinary shares has been proposed.

(8) Corporate tax of 25% is to be provided.

Required:

a) Prepare a Statement of comprehensive income for the year ended 31 December 2015.

b) Prepare a Statement of Financial Position as at 31 December 2015.

Question 4

The Trial Balance of BITA Berhad at 30 June 2015 is as follows:

DR CR
RM RM
(‘000) (‘000)
Ordinary Share capital (RM1 per share) 700
Inventory at 1 July 2014 170
Trade receivables 450
Trade payables 227
Allowance for receivables 22
Share premium 70
Retained earnings as at 1 July 2014 100
Irrecoverable debts expenses 35
Equipment at cost 360
Motor vehicles at cost 450
Bank 198
Cash in hand 25
Sales 1,499
Purchases 900
Returns 15 18
Interim dividends paid 21
Wages & salaries 150
Rent, assessment and insurance 150
Discounts 28 32
Directors’ remuneration 48
Accumulated depreciation:
- Equipment 108
- Motor vehicles 224
3,000 3,000
Additional information:

(9) Inventory at 30 June 2015 was valued at RM158,000. Included in this inventory were goods
costing RM15,000 which has been totally damaged and has no value.

(10) Allowance for receivables of 10% is to be provided.

(11) A final dividend of 5 sen per share on the ordinary shares was proposed.

(12) Rent of RM4,000 and director’s remuneration of RM3,000 is outstanding.

Insurance amounting to RM2,000 has been paid in advance.

5. The company uses the straight line method of depreciation for both the equipment at 15%
per annum and for the motor vehicles at 20% per annum.

6. Corporate tax of 25% is to be provided.

Required:
a) Prepare a Statement of comprehensive income for the year ended 30 June 2015.

b) Prepare a Statement of Financial Position as at 30 June 2015.

Question 5

The trial balance of BMT Berhad at 31 March 2016 is as follows:

DR CR
RM RM
(‘000) (‘000)
Ordinary Share capital (RM1 per share) 800
Inventory at 1 April 2015 170
Trade receivables 500
Trade payables 200
Allowance for receivables 31
Share premium 100
Retained earnings b/f 70
Irrecoverable debts 35
Equipment at cost 450
Motor vehicles at cost 360
Bank 348
Cash in hand 25
Sales 1,498
Purchases 850
Returns 17 18
Carriage inwards 19
Wages & salaries 150
Rent, assessment and insurance 100
Discounts 28 32
Directors’ remuneration 30
Accumulated depreciation:
- Equipment 108
- Motor vehicles 225
3,082 3,082
Additional information:

(a) Inventory at 31 March 2016 was valued at RM180,000. Included in this inventory were
goods costing RM20,000 which had been totally damaged and had no value.

(b) Allowance for receivables of 10% is to be provided.

(c) A dividend of 3 sen per share on the ordinary shares was proposed.

(d) Rent of RM5,000 and director’s remuneration of RM2,000 is outstanding. Insurance

amounting to RM1,000 has been paid in advance.

(e) The company uses the straight line method of depreciation for the equipment at 10% per
annum and for the motor vehicles at 20% per annum.

(f) Corporate tax of RM30,000 is to be provided.

Required:

a) Prepare a Statement of Profit or Loss and Comprehensive Income for the year ended 31
March 2016.

b) Prepare a Statement of Financial Position as at 31 March 2016.

Question 6

The Trial Balance of Xylene Sdn Bhd as at 30 April 2015 is given as follows:

DR CR
RM RM
Share capital authorised and issued 200,000
Inventory at 1 May 2014 35,000
Trade receivables 25,000
Trade payables 5,000
5% debentures 30,000
Share premium 1,000
Retained earnings 12,250
Debenture interest 750
Equipment at cost 140,000
Motor vehicles at cost 78,000
Bank 8,000
Cash in hand 200
Sales 103,700
Purchases 48,000
Returns 1,000 2,300
Carriage inwards 700
Wages & salaries 15,000
Rent, assessment and insurance 5,000
Discounts 1,200 600
Directors’ remuneration 10,000
Accumulated depreciation:
- Equipment 8,000
- Motor vehicles 5,000
367,850 367,850
Additional information as at 30 April 2015:

(1) Inventory at 30 April 2015 was valued at RM40,000

(2) The share capital consisted of 200,000 ordinary shares of RM1 each. A dividend of 1 sen
per share on the ordinary shares was proposed.

(3) Rent accrued was RM1,000 and directors’ remuneration of RM2,000 was to be accrued.
Insurance prepaid was RM500.

(4) Depreciation on cost: Equipment 10%. Motor vehicles 12 ½ %

(5) Corporate tax of RM 500 was to provided for the year.

Required:

Prepare the Statement of Profit or Loss for Xylene Sdn Bhd for the year ending 30 April 2015 and
a Statement of Financial Position as at that date.
Question 7

The Trial Balance of BAKTI Berhad as at 31 December 2016 is as follows:

DR CR
RM RM
(‘000) (‘000)
Ordinary Share capital (RM1 per share) 600
Inventory at 1 January 2016 170
Trade receivables 450
Trade payables 205
Allowance for receivables 22
Share premium 70
Retained earnings b/f 100
Irrecoverable debts 31
Equipment at cost 360
Motor vehicles at cost 450
Bank 190
Cash in hand 25
Sales 1,490
Purchases 850
Returns 17 18
Carriage inwards 19
Wages & salaries 126
Rent, assessment and insurance 124
Discounts 28 32
Directors’ remuneration 30
Accumulated depreciation:
- Equipment 108
- Motor vehicles 225
2,870 2,870
Additional information:

(1) Inventory at 31 December 2016 was valued at RM170,000.

(2) Allowance for receivables of 10% is to be provided.

(3) A dividend of 5 sen per share on the ordinary shares was proposed.

(4) Rent of RM4,000 and director’s remuneration of RM6,000 are outstanding. Insurance
amounting to RM2,000 has been paid in advance.

(5) The company uses the straight line method of depreciation for the equipment at 15% per
annum and for the motor vehicles at 20% per annum.

(6) Corporate tax of 25% is to be provided.

Required:

(c) Prepare an Income Statement for the year ended 31 December 2016.

(d) Prepare a Statement of Financial Position as at 31 December 2016.