QUESTION 3 The following account balances of East Bhd as at 31 December 2020, unless stated otherwise. Debit Credit (RM’000) (RM'000) Cost of Sales and Sales Revenue 12,000 48,000 Distribution costs 4,000 Administrative costs 4,500 Finance costs 200 Taxation 1,800 Interim Ordinary Dividend 1,250 Buildings (at cost) 50,000 Plants and Machines (at cost) 12,000 Motor Vehicles (at cost) 20,000 Goodwill (indefinite life) 5,000 Patents 3,000 Accumulated depreciation as at 1 January 2020: Buildings 25,000 Plants and Machines 6,000 Motor Vehicles 12,000 Inventories (at cost) 2,000 Trade Receivables and Trade Payables 15,000 5,000 Cash and Bank 4,250 25 million Ordinary Shares Capital 25,000 Retained Earnings as at 1 January 2020 14,000 135,000 135,000 Additional information: 1. Provide depreciation (amortisation) for all properties, plants, and equipment as well as patents by using straight line method. The rates for: buildings (5% per annum); plants and machines (10% per annum); motor vehicles (20%); and patents (10% per annum).
QUESTION 3 The following account balances of East Bhd as at 31 December 2020, unless stated otherwise. Debit Credit (RM’000) (RM'000) Cost of Sales and Sales Revenue 12,000 48,000 Distribution costs 4,000 Administrative costs 4,500 Finance costs 200 Taxation 1,800 Interim Ordinary Dividend 1,250 Buildings (at cost) 50,000 Plants and Machines (at cost) 12,000 Motor Vehicles (at cost) 20,000 Goodwill (indefinite life) 5,000 Patents 3,000 Accumulated depreciation as at 1 January 2020: Buildings 25,000 Plants and Machines 6,000 Motor Vehicles 12,000 Inventories (at cost) 2,000 Trade Receivables and Trade Payables 15,000 5,000 Cash and Bank 4,250 25 million Ordinary Shares Capital 25,000 Retained Earnings as at 1 January 2020 14,000 135,000 135,000 Additional information: 1. Provide depreciation (amortisation) for all properties, plants, and equipment as well as patents by using straight line method. The rates for: buildings (5% per annum); plants and machines (10% per annum); motor vehicles (20%); and patents (10% per annum).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Report the above information in the form of the following statements for external use:
I) Statement of Profit or Loss for the year ended 31 December 2020.
![QUESTION 3
The following account balances of East Bhd as at 31 December 2020, unless stated
otherwise.
Debit
Credit
(RM'000)
(RM'000)
Cost of Sales and Sales Revenue
12,000
48,000
Distribution costs
4,000
Administrative costs
4,500
Finance costs
200
Тахation
1,800
Interim Ordinary Dividend
1,250
Buildings (at cost)
50,000
Plants and Machines (at cost)
12,000
Motor Vehicles (at cost)
20,000
Goodwill (indefinite life)
5,000
Patents
3,000
Accumulated depreciation as at 1 January 2020:
Buildings
25,000
Plants and Machines
6,000
Motor Vehicles
12,000
Inventories (at cost)
2,000
Trade Receivables and Trade Payables
15,000
5,000
Cash and Bank
4,250
25 million Ordinary Shares Capital
25,000
Retained Earnings as at 1 January 2020
14,000
135,000
135,000
Additional information:
1.
Provide depreciation (amortisation) for all properties, plants, and equipment as
well as patents by using straight line method. The rates for: buildings (5% per
annum); plants and machines (10% per annum); motor vehicles (20%); and
patents (10% per annum).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F879c1a07-41d7-413e-b830-d9ca2f6d9a2e%2Fd8ed21ff-a669-4f38-9b21-fbd2781a3bfd%2Fbpx6stk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 3
The following account balances of East Bhd as at 31 December 2020, unless stated
otherwise.
Debit
Credit
(RM'000)
(RM'000)
Cost of Sales and Sales Revenue
12,000
48,000
Distribution costs
4,000
Administrative costs
4,500
Finance costs
200
Тахation
1,800
Interim Ordinary Dividend
1,250
Buildings (at cost)
50,000
Plants and Machines (at cost)
12,000
Motor Vehicles (at cost)
20,000
Goodwill (indefinite life)
5,000
Patents
3,000
Accumulated depreciation as at 1 January 2020:
Buildings
25,000
Plants and Machines
6,000
Motor Vehicles
12,000
Inventories (at cost)
2,000
Trade Receivables and Trade Payables
15,000
5,000
Cash and Bank
4,250
25 million Ordinary Shares Capital
25,000
Retained Earnings as at 1 January 2020
14,000
135,000
135,000
Additional information:
1.
Provide depreciation (amortisation) for all properties, plants, and equipment as
well as patents by using straight line method. The rates for: buildings (5% per
annum); plants and machines (10% per annum); motor vehicles (20%); and
patents (10% per annum).
![2.
Depreciation of buildings and motor vehicles should be allocated equally to
distribution costs and administrative costs. Depreciation of plants and machines
and amortisation of patents should be allocated fully to cost of sales.
3.
Taxation amount in trial balance consists of current year tax paid of
RM1,700,000 and under provision of tax in prior year of RM100,000. Tax
expense in current year of RM1,500,000.
4.
As at 31 December 2020, accrued administrative costs of RM100,000; prepaid
distribution costs of RM250,000 and inventories at net realisable value of
RM2,250,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F879c1a07-41d7-413e-b830-d9ca2f6d9a2e%2Fd8ed21ff-a669-4f38-9b21-fbd2781a3bfd%2Fru188hm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2.
Depreciation of buildings and motor vehicles should be allocated equally to
distribution costs and administrative costs. Depreciation of plants and machines
and amortisation of patents should be allocated fully to cost of sales.
3.
Taxation amount in trial balance consists of current year tax paid of
RM1,700,000 and under provision of tax in prior year of RM100,000. Tax
expense in current year of RM1,500,000.
4.
As at 31 December 2020, accrued administrative costs of RM100,000; prepaid
distribution costs of RM250,000 and inventories at net realisable value of
RM2,250,000.
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