Question 2 The following Trial Balance is extracted from the books of FW Sdn Bhd as at 31 December 20X1: Trial Balance as at 31 December 20X1 Dr Cr RM RM 20,000 non-redeemable Preference share capital 20,000 70,000 Ordinary share capital 70,000 10% debentures (repayable 20X8) 30,000 Building at cost 110,500 Equipment at cost 8,000 Motor vehicles at cost 17,200 Accumulated depreciation : equipment 1.1.20X1 2,400 Accumulated depreciation : motors 1.1.20X1 5,160 Inventories 22,690 Sales 98,200 Purchases 53,910 Carriage inwards 1,620 Salaries & wages 9,240 Directors’ remuneration 6,300 Motor expenses 8,120 Rates & insurances 2,930 General expenses 560 Debenture interest 1,500 Trade Receivables 18,610 Trade Payables 11,370 Cash at Bank 8,390 General reserve 19,000 Interim ordinary dividend paid 3,500 Retained earnings: 31.12.20X0 16,940 273,070 273,070 The following adjustments are needed: (i) Inventories at 31.12.20X1 were RM27,220. (ii) Depreciation of motor vehicles RM3,000 and equipment RM1,200.
Question 2
The following
31 December 20X1:
Trial Balance as at 31 December 20X1 Dr Cr
RM RM
20,000 non-redeemable
70,000 Ordinary share capital 70,000
10% debentures (repayable 20X8) 30,000
Building at cost 110,500
Equipment at cost 8,000
Motor vehicles at cost 17,200
Accumulated
Accumulated depreciation : motors 1.1.20X1 5,160
Inventories 22,690
Sales 98,200
Purchases 53,910
Carriage inwards 1,620
Salaries & wages 9,240
Directors’ remuneration 6,300
Motor expenses 8,120
Rates & insurances 2,930
General expenses 560
Debenture interest 1,500
Trade Receivables 18,610
Trade Payables 11,370
Cash at Bank 8,390
General reserve 19,000
Interim ordinary dividend paid 3,500
273,070 273,070
The following adjustments are needed:
(i) Inventories at 31.12.20X1 were RM27,220.
(ii) Depreciation of motor vehicles RM3,000 and equipment RM1,200.
(iii)Accrued debenture interest RM1,500.
(iv) The directors proposed the following:
a. Final ordinary dividend of 10 sen per share
b. The preference share dividend 10 sen per share is to be paid in full
c. Transfer RM5,000 to general reserve
(v) The tax expense is expected to be RM5,000.
Required:
Prepare the Statement of Profit or Loss and an extract of the Statement of
Changes in Equity (showing the movements in retained earnings) for the
financial year ended 31 December 20X1 and the Statement of Financial
Position as at that date.
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