Professional Documents
Culture Documents
INSTRUCTIONS TO CANDIDATES
2. Answer ALL questions by HANDWRITTEN in English. Start each answer on a new page.
3. Students are prohibited from any type of plagiarism, collusion and copying from others.
4. Students are required to submit the handwritten answers in ONE (1) pdf file.
QUESTION 1
B. Syaeeqa and Ulfa started a partnership on selling soft toys. The partnership agreement
contains the following provisions:
RM RM
Non-current assets
Premises 170,000
Motor vehicles at carrying value 110,000
Shop equipment 65,000
345,000
Current assets
Inventories 30,000
Account receivables 15,000 45,000
390,000
Current accounts
Syaeeqa 80,000
Ulfa 40,000 120,000
Non-Current Liability
15% Loan 50,000
Current Liabilities
Account payables 35,000
Bank overdraft 5,000 40,000
390,000
Ulfa resigned from being a partner on 30 April 2021. Any amount due to her was paid
by cheque. Ulfa was replaced by Nur on the same day. Nur brought in RM50,000 into
the partnership, including RM12,000 which was her share of premium goodwill. Goodwill
was not to be maintained in the books.
i) Both Syaeeqa and Nur are to receive a salary of RM1,300 per month.
ii) No interest will be allowed on capital and interest on drawings is 5% per annum.
iii) The profit or loss is distributed equally among the partners.
Additional information:
2. Due to changes in the partnership, the assets of the partnership were revalued.
The value of premises was increased by RM60,000, while the value of motor
vehicles and inventories were reduced by RM25,000 and RM5,000 respectively.
3. Net profit for the year ended 31 December 2021 is RM120,000. This amount is
assumed to be accrued evenly throughout the year.
Show all your workings and round up your calculations to the nearest RM.
Required:
c. Appropriation statement showing the pre and post period for the year ended 31
December 2021.
(7 marks)
QUESTION 2
A. Differentiate private company and public company in terms of their name and issuance
of shares.
(4 marks)
B. Rentas Negeri Bhd was incorporated as a trading company in 2018. The extract of the
Statement of Financial Position as at 31 December 2020 is as follows:
Reserves
Retained earnings 200,000,000
Below are the transactions that have taken place for the year ended 31 December 2021:
3. A right issue of 1 to 40 shares was also made to the existing shareholders held at
the opening year balance at RM3.50 each.
Required:
c. Explain briefly TWO (2) similarities of both Redeemable Preference shares and
Debentures.
(4 marks)
(Total: 20 marks)
QUESTION 3
The Statement of Financial Position of Smoky Blue Bhd as at 31 December 2020 is given
below:
ASSETS RM
Investment 2,000,000
Other non-current assets (Carrying value) 6,500,000
Bank 2,548,000
11,048,000
Reserves
Retained earnings 2,520,000
Non-current liabilities
8% Redeemable preference shares 2,880,000
During the year ended 31 December 2021, the following transactions took place:
2. 150,000 ordinary shares were repurchased and cancelled at RM3.00 per share. The
share retirement method was used for this purpose.
Required:
Prepare the relevant journal entries to record the above transactions. (Narrations are not
required).
(Total: 15 marks)
QUESTION 4
Andemik Bhd was incorporated two years ago. The principles activities are manufacturing and
marketing sports equipment. The company issued ordinary and preference shares to sustain
their business and remain as public listed. Some of the funds are also being financed by the
debentures. The following is the trial balance of Andemik Bhd as of 31 December 2021.
RM RM
2,500,000 Ordinary shares capital 5,000,000
700,000 7% Preference shares capital 700,000
Retained profit 2,450,000
General reserve 860,000
5% Debentures 450,000
250,000 Treasury shares 300,000
Sales 1,645,000
Other income 22,000
Investment income 50,000
Cost of sales 750,000
Administrative expenses 250,500
Selling and distribution expenses 120,000
Sales commission 10,000
Interest on debentures 13,500
Interim dividend - 7% Preference shares 10,500
Directors’ remuneration 64,500
Audit fee 12,000
Land and building at cost (Land is RM2,000,000) 3,700,000
Plant and equipment (cost) 5,840,000
Furniture and fittings (cost) 350,000
Accumulated depreciation as at 1 January 2021:
- Building 340,000
- Plant and equipment 770,000
- Furniture and fittings 140,000
Fixed deposit 400,000
Trademarks 160,000
Inventories 125,000
Bank 242,000
Trade receivables 150,000
Trade payables 101,000
Taxation paid 30,000
12,528,000 12,528,000
The following information were taken place during the year ended 31 December 2021 and no
adjustment have been made during the year:
1. Provisions are to be made for electricity expenses of RM12,000 and accrued rent
received of RM6,500.
2. Part of interest on debentures was still unpaid. The Debentures was issued on 1 January
2020.
RM
Building 170,000
Plant and Equipment 150,000
Furniture and Fitting 60,000
4. On 1 November 2021, the company sold all its treasury shares in the market at RM1.50
per share.
5. During the current year, the company incurred RM24,500 for its taxation.
6. On 17 December 2021, the directors declared final dividend of 20 sen per Ordinary
shares and remaining dividend for the Preference shares.
Required:
Prepare the following statements in a form suitable for publication and in compliance with the
Companies Act 2016 (as amended) and related Malaysian Financial Reporting Standards
(MFRS):
a. Statement of Profit and Loss and Other Comprehensive Income for the year ended 31
December 2021.
(7 marks)
QUESTION 5
Gen Why Sdn Bhd has involved in production of patchwork bedsheet since 2015. The
following list of balances was extracted from the books of Gen Why Sdn Bhd as at 31
December 2021.
RM
Purchases:
Raw materials 65,000
Finished goods 30,000
Inventory as at 1 January 2021:
Raw materials 5,500
Work in progress 2,500
Finished goods 9,600
Sales 958,000
Purchases return 5,850
Salary of production workers 50,000
Electricity and power 51,000
Royalty 8,570
Maintenance of machinery 570
Supervisor’s salary 21,600
Insurance on buildings 3,900
Office staff salary 40,000
Interest on loan 3,100
Allowance for unrealized profit as of 1 January 2021 4,900
Depreciation expenses 11,800
Additional information:
RM
Raw materials 4,300
Work in progress (at production cost) 2,700
Finished goods 7,980
RM
Depreciation on machinery 8,100
Depreciation on office equipment 3,700
4. As of 31 December 2021, the following adjustments have not been recorded yet:
RM
Accrued electricity and power 2,500
Prepaid interest on loan 430
Factory Office
Electricity and power 65% 35%
Insurance on buildings 75% 25%
Required:
b. Prepare Statement of Profit or Loss for the year ended 31 December 2021.
(6 marks)
c. Explain briefly TWO (2) differences between non-profit organizations and profitable
organizations in terms of their ownership and primary mission.
(4 marks)
(Total: 20 marks)