QUESTION 1

Harapan Tinggi Bhd (HTB) was established in 2012, dealing with sales of health foods and
supplements. The company closes its account on 31 March. The unadjusted trial balance of
HTB showed the following accounts on 31 March 2022:

Accounts Debit (RM) Credit (RM)

Land 105,000
Office building 193,700
Equipment 35,000
Motor vehicle 120,500
Accumulated depreciation:
- Office building 58,125
- Equipment 10,500
- Motor vehicle 24,100
Bank 125,550
Accounts receivable 32,500
Office supplies 14,750
Prepaid insurance 18,000
Inventory 86,200
Ordinary share capital 200,000
Reserves 59,000
Retained earnings 98,250
Profit on sales of land 25,000
Sales revenue 346,575
Cost of goods sold 115,100
Salary and wages expense 72,500
Interest expense 15,000
Advertising expense 11,000
Insurance expense 4,800
Sales commission 11,800
Utility expense 5,500
Notes payable (5 years) 118,000
Accounts payable 11,500
Unearned revenue 15,850
966,900 966,900
Additional information:

1. Office buildings are depreciated and 5% per annum and other assets are at 10% per
annum.
2. The physical count on office supplies showed a balance of RM9,500 in hand.
3. On 1 March 2022, the company signed a 5% note payable with a face value of
RM120,000 payable monthly of RM2,000 for five years, Interest RM500 were accrued
and not recorded anywhere in the book.
4. A total of RM5,700 value of goods from the pre-order list has been delivered on 30
March 2022. The customer made payment during the pre-order on 10 March 2022 and
properly recorded in the book.
5. The payment for the 12-month insurance coverage for office buildings were made in July
2021.
6. Goods ordered by customer amounting to RM3,900 were sent via EagleEx and
confirmed receipt by customer on 31 March 2022. It was not billed, and no payment
received yet. A 5% sales commission on this sale was also not yet counted in the book.
7. No payment was made for utility expense of RM1,300 overdue.
8. The income tax expense was calculated to be RM11,000.

REQUIRED:

(a) Prepare the necessary adjusting and correcting entries for HTB.
(b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year
ended 31 March 2022 according to MFRS101 Presentation of Financial Statement
using one statement format.
(c) Prepare a Statement of Financial Position as at 31 March 2022 according to MFRS101
Presentaion of Financial Statement.
QUESTION 2

Below is an Unadjusted Trial Balance of Jaya Trading Bhd at 31 December 2020.

Dr. (RM) Cr. (RM)
Account receivables 109,658
Buildings 1,372,680
Cash 1,314,264
Cost of goods sold 856,152
Equipment 504,000
Patent 60,276
Income tax expense 60,340
Inventory 551,950
Land 766,800
Maintenance and repair expenses 11,953
Office expense 14,086
Prepaid insurance 48,000
Property tax expense 1,680
Salaries and wages expenses 25,334
Sales returns and allowance 1,176
Accounts payable 36,936
Accumulated depreciation – buildings 137,268
Accumulated depreciation - equipment 252,000
Deferred tax liability 21,600
Gain on revaluation of properties 29,640
Gain on sale of land 109,560
Gain on translation of foreign operations 5,880
Notes payable 194,400
Rent revenue 57,600
Retained earnings 912,720
Revaluation reserve 560,640
Translation of foreign operations reserve 263,160
Sales revenue 2,238,180
Share capital 878,765
5,698,349 5,698,349

Additional information:
1. An unpaid salaries and wages as at 31 December 2020 is RM18,000.
2. A tenant of an office space has not yet pay a rental for December 2020 amounting
RM3,000.
3. The company returned defect merchandise bought from supplier and was refunded
RM3,500 in cash. The company use perpetual inventory system and this transaction has
not yet been recorded.
4. The company received RM35,000 in cash from a customer on 30 December 2020 and
recorded as sales revenue. However the company only managed to supply the
merchandise on 3 January 2021.
5. Payment for a one-year insurance coverage was made on 1 July 2020.
6. Annual depreciation for building and equipment are based on straight line depreciation
basis over a period of 50 years and 10 years respectively with no scrap value.
7. 30% of the notes payable is due next year. The note payable interest rate is 8% per
annum.

REQUIRED:
a) Journalise the adjusting entries on 31 December 2020.
b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for Jaya Trading
Bhd for the year ended 31 December 2020 according to MFRS 101 Presentation of
Financial Statement.
c) Prepare a Statement of Financial Position for Jaya Trading Bhd as at 31 December 2020
according to MFRS 101 Presentation of Financial Statement.

(Note: Round-up your answer to the nearest RM)

QUESTION 3

Annur Bhd., a merchandising company started its operation in 2014. Presented below is the
unadjusted trial balance as at 31 December 2021.

Accounts RM RM
Land 550,000
Buildings 25,000,000
Equipment 8,000,000
Accumulated depreciation for buildings 4,000,000
Accumulated depreciation for equipment 3,200,000
Intangible assets 50,000
Investment in associate companies 150,000
Cash 4,500,000
Trade receivables 300,000
Short term investments 37,000
Inventory 541,000
Prepaid insurance 30,000
Share capital 7,000,000
Revaluation reserve 250,000
Foreign translation reserve 43,000
Retained earnings 4,953,000
Bonds payable 3,000,000
Long term finance lease liabilities 10,497,000
Notes payable 1,000,000
Trade payable 1,030,000
Unearned sales revenue 220,000
Salary and wages payable 20,000
Sales revenue 20,000,000
Share of profit of associatesOIE 200,000
Sales return and allowances 10,000
Cost of goods sold 15,000,000
Bad debt expense 32,000
Salaries and wages expense 385,000
Finance costsOIE 30,000
Property tax expense 52,000
Loss on the disposal of old buildingOIE 17,000
Gain on revaluation of propertiesOCI 100,000
Loss on foreign translation0CI 32,000
Profit from the period from discontinued 23,000
operationOIE
Income tax expense 820,000
TOTAL 55,536,000 55,536,000
Additional information:
1. Annual depreciation for buildings and equipment are based on the straight-line
method over a period of 25 years and 10 years respectively.
2. Prepaid insurance represents an insurance policy purchased on 1 July 2021 with a
covering period of one year.
3. 40% of the notes payable will be due on June 2022.
4. Sales revenue earned but unbilled on 31 December 2021 is RM150,000.
5. 30% of the bonds payable are due next year.
6. Salaries and wages of RM35,000 are accrued and unpaid at 31 December 2021.

REQUIRED:
(a) Journalise the adjusting entries on 31 December 2018. (You may omit the explanation)

(b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for Annur
Bhd. for the year ended 31 December 2021 according to MFRS 101 Presentation of
Financial Statements.

(c) Prepare a Statement of Financial Position for Annur Bhd. as at 31 December 2021
according to MFRS 101 Presentation of Financial Statements.

~END OF THE QUESTIONS~

9. A total of RM5,700 value of goods from the pre-order list has been delivered on 30
March 2022. The customer made payment during the pre-order on 10 March 2022 and
properly recorded in the book.

8. The company received RM35,000 in cash from a customer on 30 December 2020 and
recorded as sales revenue. However the company only managed to supply the
merchandise on 3 January 2021.
9. Goods ordered by customer amounting to RM3,900 were sent via EagleEx and confirmed
receipt by customer on 31 March 2022. It was not billed, and no payment received yet.
10. Sales revenue earned but unbilled on 31 December 2021 is RM150,000.