PEPERIKSAAN AKHIR SEMESTER I

SESI 2021/2022
(FINAL EXAMINATION SEMESTER I
2021/2022 SESSION)

KOD KURSUS : SBSC 1103 / SHAC 1103 (PART II)

(COURSE CODE)

NAMA KURSUS : PERAKAUNAN KEWANGAN DAN PELAPORAN 1

(COURSE) (FINANCIAL ACCOUNTING AND REPORTING 1)

PROGRAM : SARJANA MUDA

(PROGRAMME) (BACHELOR DEGREE)

MASA : 1 JAM 15 MINIT

(DURATION) (1 HOUR 15 MINUTES)

TARIKH : FEBRUARI 2022

(DATE) (FEBRUARY 2022)

D
MARKAH : 40 (MENYUMBANG 20 PERATUS KEPADA MARKAH

E
(MARKS) KESELURUHAN)

S
(CONTRIBUTING 20 PERCENT TO THE OVERALL

R
MARKS)

ARAHAN KEPADA CALON:

D O
(INSTRUCTION TO CANDIDATES)

Jawab SEMUA soalan.

E N
(Answer ALL questions).

KERTAS PEPERIKSAAN INI TERDIRI DARIPADA 4 MUKA SURAT SAHAJA

(TERMASUK MUKA SURAT INI).
THIS EXAMINATION PAPER CONSISTS OF 4 PAGES ONLY (INCLUDING THIS PAGE).
4. The following are events related to the equity components of Johor Rubber Bhd.
(JRB) that occurred in 2021:

Date Events

5 January Issued no-par value bonus shares at RM2.00 per share, at a ratio of
one for every five shares held utilising the general reserves and
retained earnings equally.
20 March Final dividend of RM2 million has been approved during the
annual general meeting.
10 April Paid dividend payable for 2020 which has been approved during
the annual general meeting on 20 March 2021.
15 April Issued 5 million no-par value shares for cash at RM2.00 per share.
A prospectus was issued to the public inviting subscription of
shares payable in full upon application.
30 April The application money received for subscription of 5.5 million
units of shares for shares issued on 15 April 2021.
15 May Allotment of shares for application received on 30 April 2021. The
company refunded the application money to unsuccessful
applicants. The cost of share issued is RM150,000.
1 November The board of directors received an information of potential
takeover by a group of consortiums. A share buy-back plan was
proposed by the board of directors to counter takeover interest.
15 December In extraordinary general meeting, the shareholders approved the
share buy-back plan proposed by the board of directors on 1
November. A total of 10 million shares at an average price of
RM2.00 were bought back and cancelled, utilising the ordinary
share capital, general reserves and retained earnings in a proportion
of 4:2:2.
31 December The board of director has proposed a transfer of retained earnings
for RM1,000,000 to general reserves.
31 December The net profit after tax for the year was RM4.6 million.

2
 The equity of JRB consists of the following components as at 1 January 2021:

RM’000
20,000,000 units ordinary share capital 40,000
Retained earnings 18,250
General reserves 10,000
Revaluation reserves 6,000

Required:

(a) Prepare journal entries for the events above (except for the net profit after tax).
(12 marks)

(b) Prepare Statement of Changes in Equity for the year ended 31 December 2021.

(6 marks)

5. Fast Track Sdn. Bhd. (FTSB) enters into a contract with Initial Gain Trading (IGT) on
1 January 2021 to sell Product X for RM150 per unit. The contract states that if IGT
purchases more than 1,000 units of Product X in a calendar year, the price per unit is
retrospectively reduced to RM135 per unit. For the first quarter ended 31 March 2021,
FTSB sold 125 units of Product X to IGT. In the second quarter ended 30 June 2021,
IGT launched its promotion campaign for Product X. As a result, sales of Product X
to IGT increased by 475 units in the second quarter of 2021.

Required:
(a) Discuss how FTSB would recognise the revenue for the first quarter ended 31
March 2021 and for the second quarter ended 30 June 2021.
(8 marks)
(b) Explain the two methods to estimate variable considerations.
(6 marks)

3
6. Power Laser Bhd. (PLB) enters into a contract with Mutiara Optic Sdn. Bhd. (MOSB)
and promises to grant a franchise licence that provides MOSB with the right to use
PLB’s trade name and sell PLB’s products for 10 years. In addition to the licence, the
PLB also promises to provide the equipment necessary to operate a franchise store. In
exchange for granting the licence, PLB receives a sales-based royalty of five per cent
of the MOSB’s monthly sales. The fixed consideration for the equipment is
RMM150,000 payable when the equipment is delivered.

Required:
Identify and discuss performance obligation of PLB and determine whether the goods
and services promised in the contract are distinct or not.
(8 marks)