Additional information:On 1 July 2020, Fleuronce Bhd acquired a new plant at its fair value of RM2,400,000. This entry has been omitted in the above trial balance. In order to finance the acquisition of the plant, the company issued 2,400,000 units of ordinary shares at RM1 per share. All the shares were fully subscribed and paid for but have yet to be recorded in the accounts as at year end.It is the policy of the company to depreciate plant and machinery and equipment at 20% on cost based on period of ownership. No depreciation or amortisation has yet been charged on any non-current asset for the year ended 30 June 2021.On 1 July 2020, the freehold land and building were revalued to RM160,000,000 and RM110,000,000 respectively. The land and building have been revalued before on 1 July 2013 resulting in a surplus of RM 50,000,000 and RM11,000,000 respectively. The remaining useful life of the building as at 1 July 2020 was 20 years. The company adopts the revaluation model for the land and building. The company makes an annual transfer from revaluation reserve to retained profits in respect of the realisation of revaluation surplus.The closing inventories include some obsolete goods costing RM700,000 that can only be sold for RM500,000.At end of the year, a patent with carrying amount of RM453,000 was sold at RM270,000. The fair value of the remaining intangible asset at 30 June 2021 was valued at RM300,000. The economic life of all the intangible asset is indefinite. No record was found on any of these transactions.The taxation charge for the year is estimated to be RM8,500,000. This amount does not include an increase in deferred tax liability by RM200,000.a)ii) Prepare Statement of Financial Position as at 30 June 2021. (Show all workings. Present your answer using RM’000 in the column heading) Fleuronce Berhad is a company producing cosmetic appliances throughoutMalaysia. The following is the trial balance as at 30 June 2021:DebitCreditRM’000RM'000Revenue230,160Investment income5,200126,80024,70012,300Cost of salesAdministrative expensesSelling and distribution expensesFinance chargesRedeemable preference dividend paidAsset revaluation reserve3,51085061,00014,500Trade receivables and payablesInventory15,50013,700Bank overdraft15,5803,600Deferred tax liability at 1 July 2020Freehold land at valuation as at 1 July 202096,000100,00062,00017,000Building at valuation as at 1 July 2020Plant and machinery at cost on 1 July 2020Equipment at cost on 1 July 2020Accumulated depreciation at 1 July 2020:BuildingPlant and machineryEquipmentOrdinary share capital at 1 July 20205% Redeemable preference share capitalRetained profit at 1 July 2020Тах paid5,0006,2005,100100,00017,00016,0006,200Intangible asset780Total479,340479,340

The question requires including the additional information in the books of accounts. For this we…

Answered: a)ii) Prepare Statement of Financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Additional information:

On 1 July 2020, Fleuronce Bhd acquired a new plant at its fair value of RM2,400,000. This entry has been omitted in the above trial balance. In order to finance the acquisition of the plant, the company issued 2,400,000 units of ordinary shares at RM1 per share. All the shares were fully subscribed and paid for but have yet to be recorded in the accounts as at year end.
It is the policy of the company to depreciate plant and machinery and equipment at 20% on cost based on period of ownership. No depreciation or amortisation has yet been charged on any non-current asset for the year ended 30 June 2021.
On 1 July 2020, the freehold land and building were revalued to RM160,000,000 and RM110,000,000 respectively. The land and building have been revalued before on 1 July 2013 resulting in a surplus of RM 50,000,000 and RM11,000,000 respectively. The remaining useful life of the building as at 1 July 2020 was 20 years. The company adopts the revaluation model for the land and building. The company makes an annual transfer from revaluation reserve to retained profits in respect of the realisation of revaluation surplus.
The closing inventories include some obsolete goods costing RM700,000 that can only be sold for RM500,000.
At end of the year, a patent with carrying amount of RM453,000 was sold at RM270,000. The fair value of the remaining intangible asset at 30 June 2021 was valued at RM300,000. The economic life of all the intangible asset is indefinite. No record was found on any of these transactions.
The taxation charge for the year is estimated to be RM8,500,000. This amount does not include an increase in deferred tax liability by RM200,000.

a)ii) Prepare Statement of Financial Position as at 30 June 2021. (Show all workings. Present your answer using RM’000 in the column heading)