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Note to the accounts: 1. Property, plant and equipment 2020 2021 RM RM Motor Vehicles (cost) Accumulated depreciation Furnitures (cost) Accumulated depreciation Carrying value 340,000 249,300 (136,000) 170,000 (116,340) 250,800 (51,000) 323,000 (63,540) 320,220 Additional Information: Included in administrative expenses are depreciation charged for property, plant and equipment. 1. Viral Bhd disposed an old motor vehicle with a carrying amount of RM54,420 for cash. There was no purchase of motor vehicles during the year. The company also acquired a new furniture costing RM80,800 for cash during the year. 2. 3. Last year dividend payable was paid together with the current year interim dividend of RM48,750. The increase in the ordinary shares was due to the issue of new shares to the public during the year. 4. Part of the investment was sold during the year and no purchase of investment was made. 5. 6. The short-term fixed deposit qualified as cash equivalent. REQUIRED: Prepare the Statement of Cash Flow for the year ended 31 December 2021 for Viral Bhd using the DIRECT METHOD and in compliance with MFRS 107. a. b. A statement of cash flow is one of the statutory financial statements presented by companies. The statement must be prepared in compliance with MFRS 107. Briefly describe the cash flow performance of Viral Bhd for the financial year ended 31 December 2021,

Note to the accounts: 1. Property, plant and equipment 2020 2021 RM RM Motor Vehicles (cost) Accumulated depreciation Furnitures (cost) Accumulated depreciation Carrying value 340,000 249,300 (136,000) 170,000 (116,340) 250,800 (51,000) 323,000 (63,540) 320,220 Additional Information: Included in administrative expenses are depreciation charged for property, plant and equipment. 1. Viral Bhd disposed an old motor vehicle with a carrying amount of RM54,420 for cash. There was no purchase of motor vehicles during the year. The company also acquired a new furniture costing RM80,800 for cash during the year. 2. 3. Last year dividend payable was paid together with the current year interim dividend of RM48,750. The increase in the ordinary shares was due to the issue of new shares to the public during the year. 4. Part of the investment was sold during the year and no purchase of investment was made. 5. 6. The short-term fixed deposit qualified as cash equivalent. REQUIRED: Prepare the Statement of Cash Flow for the year ended 31 December 2021 for Viral Bhd using the DIRECT METHOD and in compliance with MFRS 107. a. b. A statement of cash flow is one of the statutory financial statements presented by companies. The statement must be prepared in compliance with MFRS 107. Briefly describe the cash flow performance of Viral Bhd for the financial year ended 31 December 2021,

FINANCIAL ACCOUNTING
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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PART A: PREPARATION OF CASH FLOW STATEMENT The following are the financial statements of Viral Bhd: Viral Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2021 RM Turnover 1,164,160 Cost of Sales (853,000) 311,160 Gross Profits Gain on disposal of motor vehicles Administrative expenses Selling and distribution expenses Investment income 15,580 (145,380) (28,000) 45,800 (23,000) 176,160 Interest expenses Profit before tax Tax charge for the year Profit for the year (44,040) 132,120 Viral Bhd Statement of Financial Position as at 31 December . 2020 2021 RM RM Non-Current Assets Property plant and equipment (note 1) 323,000 320,220 804,000 Investments 1,340,000 Current Assets 66,000 123,800 102,700 77,000 Inventories 78,700 144,050 333,340 571,280 Account receivables Bank Short term fixed deposit 2,032,500 2,251,590 Equity and Liabilities Ordinary Share Capital Retained Earnings 1,650,000 1,900,000 228,570 172,200 Non-Current Liabilities 10% Bank Loan 90,000 45,000 Current Liabilities Account payables Тах раyables Dividend payables Accrued expenses 78,450 36,370 10,200 11,000 13,000 27,000 3,650 18,650 2,032,500 2,251,590
Transcribed Image Text:PART A: PREPARATION OF CASH FLOW STATEMENT The following are the financial statements of Viral Bhd: Viral Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2021 RM Turnover 1,164,160 Cost of Sales (853,000) 311,160 Gross Profits Gain on disposal of motor vehicles Administrative expenses Selling and distribution expenses Investment income 15,580 (145,380) (28,000) 45,800 (23,000) 176,160 Interest expenses Profit before tax Tax charge for the year Profit for the year (44,040) 132,120 Viral Bhd Statement of Financial Position as at 31 December . 2020 2021 RM RM Non-Current Assets Property plant and equipment (note 1) 323,000 320,220 804,000 Investments 1,340,000 Current Assets 66,000 123,800 102,700 77,000 Inventories 78,700 144,050 333,340 571,280 Account receivables Bank Short term fixed deposit 2,032,500 2,251,590 Equity and Liabilities Ordinary Share Capital Retained Earnings 1,650,000 1,900,000 228,570 172,200 Non-Current Liabilities 10% Bank Loan 90,000 45,000 Current Liabilities Account payables Тах раyables Dividend payables Accrued expenses 78,450 36,370 10,200 11,000 13,000 27,000 3,650 18,650 2,032,500 2,251,590
Note to the accounts: 1. Property, plant and equipment 2020 2021 RM RM Motor Vehicles (cost) Accumulated depreciation Furnitures (cost) Accumulated depreciation Carrying value 340,000 249,300 |(136,000) 170,000 (116,340) 250,800 (51,000) 323,000 (63,540) 320,220 Additional Information: Included in administrative expenses are depreciation charged for property, plant and equipment. 1. Viral Bhd disposed an old motor vehicle with a carrying amount of RM54,420 for cash. There was no purchase of motor vehicles during the year. The company also acquired a new furniture costing RM80,800 for cash during the year. 2. 3. Last year dividend payable was paid together with the current year interim dividend of RM48,750. 4. The increase in the ordinary shares was due to the issue of new shares to the public during the year. Part of the investment was sold during the year and no purchase of investment was made. 5. 6. The short-term fixed deposit qualified as cash equivalent. REQUIRED: Prepare the Statement of Cash Flow for the year ended 31 December 2021 for Viral Bhd using the DIRECT METHOD and in compliance with MFRS 107. a. b. A statement of cash flow is one of the statutory financial statements presented by companies. The statement must be prepared in compliance with MFRS 107. Briefly describe the cash flow performance of Viral Bhd for the financial year ended 31 December 2021.
Transcribed Image Text:Note to the accounts: 1. Property, plant and equipment 2020 2021 RM RM Motor Vehicles (cost) Accumulated depreciation Furnitures (cost) Accumulated depreciation Carrying value 340,000 249,300 |(136,000) 170,000 (116,340) 250,800 (51,000) 323,000 (63,540) 320,220 Additional Information: Included in administrative expenses are depreciation charged for property, plant and equipment. 1. Viral Bhd disposed an old motor vehicle with a carrying amount of RM54,420 for cash. There was no purchase of motor vehicles during the year. The company also acquired a new furniture costing RM80,800 for cash during the year. 2. 3. Last year dividend payable was paid together with the current year interim dividend of RM48,750. 4. The increase in the ordinary shares was due to the issue of new shares to the public during the year. Part of the investment was sold during the year and no purchase of investment was made. 5. 6. The short-term fixed deposit qualified as cash equivalent. REQUIRED: Prepare the Statement of Cash Flow for the year ended 31 December 2021 for Viral Bhd using the DIRECT METHOD and in compliance with MFRS 107. a. b. A statement of cash flow is one of the statutory financial statements presented by companies. The statement must be prepared in compliance with MFRS 107. Briefly describe the cash flow performance of Viral Bhd for the financial year ended 31 December 2021.
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