PROJECT 2 FAR270

UNIVERSITI TEKNOLOGI MARA

GROUP PROJECT 2

COURSE : FINANCIAL ACCOUNTING 4

COURSE CODE : FAR270

SEMESTER : MAY 2020

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 Project 2 FAR270
i)
Gazel Tech Bhd
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2018
RM
Revenues (W1) 14,373,000
Cost of sales (W2) (7,442,500)
Gross profit 6,930,500
Investment income 390,000
Administrative expenses (W3) (3,691,500)
Distribution expenses (1,144,000)

Finance expenses (W5) (104,000)

Profit before tax 2,381,000
Taxation (650,000)
Net profit after taxation 1,731,000
Other comprehensive income:
Surplus on revaluation of land 405,600
Gain on foreign exchange (W4) 15,600
Total comprehensive income 2,152,200

Revenues (W1)
13,494,000 Trial balance
39,000
840,000
471,780,000

Cost of sales (W2)

(6,500,000) Trial balance
deprn motor vehicles
(32,500) (390,000/10x10/12)
(910,000) deprn plant (9,100,000 x 10%)
(7,442,500)

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 Project 2 FAR270
(W5) Gain on foreign exchange
156,000(546,000) x (2.50 - 3.00) = 15,600

Admin Distribution Finance

expenses expense expense
(W4) (W6)
RM RM RM
As per Trial Balance 2,074,800 1,111,500 -
Accrued interest on bank loan 26,000
Depreciation on plant & machinery 910,000
Depreciation on motor vehicle 32,500
Depreciation on building 32,500
Provision for warranty 5,200
Provision for damages 650,000
Amortization of intangible assets 19,000
Error- interest on loan (130,000)
Total 3,691,500 1,144,000 (104,000)
(11 /)
ii)
Gazel Tech Bh
Statement of Changes in Equity for the year ended 31 December 2018

Asset
Ordinary Retained revaluation
shares earning reserve
RM RM RM
Bal as at 10,400,000 2,243,800 -
Addition 130,000
Restated balance 2,373,800
Surplus on revaluation 405,600
of land
1,731,000
Profit for the year
Bal as at 30 June 2019 10,400,000 4,104,800 405,600
10 / x 1 = 10 marks
 Project 2 FAR270
iii)

Gazel Tech Bhd

Statement of Financial Position as at 31 December 2018
Non-current assets RM
Property, plant and equipment 9,489,000
Investment property 2,121,600 //
Intangible assets 1,375,000 ////
Long term investment 819,000

Currents assets
Closing Inventory 2,340,000 /
Trade receivables 1,900,300 /
Bank & Cash 950,500 4 /
18,995,400

Equity
Share capital 10,400,000
Retained earnings 4,104,800
Other reserves 405,600
14,910,400
Non-current liabilities
6% bank loan 665,600 /

Current liabilities
Trade payables 26,800,000 /
Tax payable 3,500,000 /
Provision for damages 1,010,000 /
Provision for warranty 1,000,000 /
Provision for external audit fees 250,000 /
Accrued interest on bank loan 288,000 /
Accrued interest on debentures 2,000,000 /
Final dividend of Non-redeemable pref shares 2,000,000 /
Accrued legal fees 90,000 /
Other payables 2,920,000 /
334,231,000

26/ x 1 = 26 marks

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 Project 2 FAR270

Bank
8,000,000 TB
159,000,000 Sale of land /
1,200,000 Mega Asean /
(500,000) Fraud /
2,500,000 Air Eagle /
170,200,000

Intangible assets
884,000 TB
380,000 copy rights
130,000 error - admin exp /
(19,000) amortisation current year /
1,375,000

Investment property
1,716,000 TB
405,600 surplus in revaluation /
2,121,600

Trade Receivables
20,000,000.00 TB
(1,700,000.00) Bad debt /
18,300,000

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 Project 2 FAR270
Bank loan
4,000,000 TB
800,000 loss on foreign exchange /
4,800,000

Tax Payable
2,000,000 TB
1,500,000 tax payable as at 30 June 2019 /
3,500,000 (current year tax)

(iv) NOTES TO THE FINANCIAL

STATEMENT a) PPE
Land Buildings Plant Motor vehicles Total
Cost/valuation RM RM RM RM RM’000
As at 1 Jan 2018 3,104,400 1,300,000 9,100,000
Surplus 404,600
Disposal
Addition 130,000 390,000
As at 3,639,000 1,300,000 9,100,000 390,000

Accumulated -
Depreciation
As at jan 18 325,000 3,640,000 -
Current year depn 32,500 910,000/ 32,500
As at 31 dec 0 357,500 4,550,000 32,500
2018
Carrying amount 3,639,000 942,500 4,550,000 357,500 9,489,000
8 / x 1 = 8 marks