Professional Documents
Culture Documents
TIME 3 HOURS
INSTRUCTIONS TO CANDIDATES
2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.
3. Do not bring any materials into the examination room unless permission is given by the invigilator.
4. Please check to make sure that this examination pack consists of:
QUESTION 1
B. Mazlan, Hakimi and Yusni were in partnership for few years. The partnership agreement
contained the following requirements:
The following information is relevant for the year ended 31 December 2018:
Net profit for the year ended 31 December 2018 amounted to RM40,800. The profit was
assumed to accrued evenly throughout the year.
Mazlan retired from the partnership on 1 August 2018 and upon his retirement, the non-
current assets were revalued. This resulted in a revaluation surplus of RM30.500.
4. The partnership agreed to pay Mazlan all amounts due to him by cheque.
5. Due to the retirement of Mazlan, the other two partners decided to invite Anis to join the
partnership on 1 August 2018. Anis agreed to contribute capital and premium on
goodwill of RM15,000 and RM10,000 respectively by cheque.
6. The new profit sharing ratio between Hakimi, Yusni and Anis is set at 3:2:1. The interest
rate for drawings is to be maintained. But, there is no interest on capital. Anis is also
entittled to a salary of RM1.000 per month in the new partnership.
RM Date
Mazlan 8,000 1 March 2018
Hakimi 3,500 1 March 2018
Anis 3,840 1 October 2018
Required:
i. The Appropriation Statement showing the pre and post periods for the year
ended 31 December 2018.
(7 marks)
ii. The Current Statement for Mazlan for the year ended 31 December 2018.
(3 marks)
iii.The Capital Statement for Mazlan for the year ended 31 December 2018.
(2 marks)
(Show all workings. Round up your calculation to the nearest RM)
(Total: 20 marks)
QUESTION 2
Golden Bhd
Statement of Financial Position as at 31 December 2017
RM
Issued and Fully Paid-up Capital
2,500,000 Ordinary Shares 5,000,000
6,000,000 10% Preference Shares 4,000,000
Reserves
Retained Earnings 12,000,000
1. Due to the expansion project of the company which commenced in April 2018, the
company decided to issue another 3,000,000 ordinary shares at RM1.80 each and
also to issue 3,000,000 10% preference shares at RM1.00 each.
2. On 1 June 2018, applications were received and fully paid for 4,500,000 ordinary
shares and 2,800,000 10% preference shares. Any excess on the applications
was rejected and refunded.
Required:
a. Journalise all of the above transactions for the year ended 31 December 2018.
(Narrations are not required)
(12 marks)
QUESTION 3
Reserves
Retained earnings 4,200,000
Additional information:
1. During the year ended 2018, the company decided to redeem all of its 10% redeemable
preference shares. The redemption was financed partly using new issue of ordinary
shares and partly out of retained earnings.
2. A new issue of 500,000 units of ordinary shares was then offered to the existing
shareholders at RM1.50 each. The issue was fully subscribed.
3. A total of 400,000 units of ordinary shares were repurchased at RM1.60 per share. 50%
of these shares were cancelled and another 50% were kept as treasury shares.
Required:
Prepare the relevant journal entries to record the above transactions (Narrations are not
required).
(Total: 15 marks)
QUESTION 4
The following balances were extracted from the books of Competitive Bhd as at 31 December
2018.
Debit Credit
RM RM
Sales 16,116,500
Cost of sales 8,800,000
Ordinary shares 14,700,000
8% Preference shares 9,800,000
General reserve 2,795,000
Interest on loan 175,000
Income on investment 130,500
Interim dividend paid:
Ordinary dividend 870,000
Preference dividend 380,000
Administrative expenses 1,600,000
Advertisement 1,200,000
Freehold land 11,700,000
Building (at cost) 12,000,000
Motor vehicle (at cost) 6,620,000
Office furniture (at cost) 6,480,000
Accumulated depreciation as at 1 January 2018:
Building 750,000
Motor vehicle 1,300,000
Office furniture 1,680,000
Auditors fee 107,000
Investment 5,280,000
Trade receivables and Trade payable 663,000 865,000
Inventory as at 31 December 2018 505,000
7% Bank loan 2,700,000
Bank 2,460,000
Tax paid for the year 497,000
Retained profit as at 1 January 2018 8,500,000
59,337,000 59,337,000
Additional information:
Building 5% on cost
Motor vehicle 10% on cost
Office furniture 10% on carrying value
3. The board of directors had declared a final dividend of 5% on ordinary shares and the
remaining dividend of 8% preference shares.
Required:
a. Prepare the following financial statements in a form suitable for publication and in
compliance with the Companies Act 2016 and related Malaysian Financial Reporting
Standards (MFRS):
i. Statement of Profit or Loss and Other Comprehensive Income for the year ended
31 December 2018.
(7 marks)
ii. Statement of Changes in Equity for the year ended 31 December 2018.
(4 marks)
QUESTION 5
A. The following is the information supplied by the bookkeeper of Pahlawan Sdn Bhd, a
manufacturing firm of sportswear for the year ended 31 December 2018.
DR CR
RM RM
Inventory as at 1 January 2018:
Raw materials 65,000
Works in progress 52,500
Finished goods 48,000
Purchase of raw materials 250,000
Sales of finished goods 953,100
Sales return 25,000
Direct labour 100,000
Direct factory expenses 80,900
Indirect factory expenses 16,000
Factory maintenance 9,700
Factory heating and lighting 19,000
Factory rent 11,500
Machine repairs 13,800
Other factory overhead 14,500
Carriage inward 5,000
Administration expenses 25,000
Selling and Distribution expenses 36,450
Additional information:
RM
Raw materials 51,400
Works in progress (Production cost) 41,000
Finished goods 53,650
2. The depreciation expenses for the year ended 31 December 2018 were as follows:
RM
Depreciation on Plant & Machinery 17,500
Depreciation on Delivery Van 10,000
Required:
b. Construct Statement of Profit or Loss for the year ended 31 December 2018.
(6 marks)
B. Non-profit organisation is a privately held entity that conduct its affairs for the purpose
of assisting the interest of the public rather than obtaining profits for themselves. This
entity is different from a corporation in that it uses its surplus money to advance the
public interest, whereas a corporation distributes its profits to its shareholders.
Explain the differences between profit and non-profit organisations in terms of their
sources of revenue and taxation.
(4 marks)
(Total: 20 marks)