5. The directors have made the following provisions for the year ended 30 April 2021:(i) A final dividend of RM0.10 per share is to be paid to ordinary shareholders.(ii) Preference dividend to be paid in full.(iii) Transferred RM4,000 to the general reserve account.QuestionPrepare the statement of changes in equity of Gagah Sdn. Bhd. for the year ended 30 April 2021. Land at cost290,000Accumulated depreciation - MachineryAccumulated depreciation - Motor vehiclesTrade payablesDebenture interest24,00016,34068,0004,000101,00036,0006,000101,040130,00012,000Trade receivablesDirectors' remunerationInterim preference share dividendCash in handCash at bankInventories as at 1 May 2020Allowance for doubtful debts1,5001,268,1401,268,140Additional information:Inventories as at 30 April 2021 have a cost of RM32,000 and a net realisable value ofRM28,000.1.2.Allowance for doubtful debts is to be adjusted to 2% of net trade receivables.3.Unpaid utilities amounted to RM500 as at the year-end on 30 April 2021.4.Depreciation policy of the company is as follows:MachineryMotor vehicles: 10% per annum on cost;: 10% per annum on net book value. The following is the trial balance of Gagah Sdn. Bhd. as at 30 April 2021:Trial balance as at 30 April 2021DebitCreditRMRMOrdinary shares7% preference shares6% debentures (repayable year 2030)General reserveRetained earnings as at 1 May 2020Discounts received300,000150,000160,00018,00050,00012,000442,50015,40010,400SalesCommission receivedReturns outwardsDiscounts allowed3,30046,0003,5002,5001,000291,4003,10010,00015,0003,3003,000120,000Wages and salariesCarriage inwardsReturns inwardsCarriage outwardsPurchasesUtilities expensesInsuranceAudit feesBad debtsGeneral expensesMachinery at costMotor vehicles at cost86.000

Working note: Computation of profit for the year ended April 30, 2021:

The following is the trial balance of Gagah Sdn. Bhd. as at 30 April 2021: Trial balance as at 30 April 2021 Debit RM Credit RM Ordinary shares 7% preference shares 6% debentures (repayable year 2030) General reserve Retained earnings as at 1 May 2020 Discounts received 300,000 150,000 160,000 18,000 50,000 12,000 442,500 15,400 10,400 Sales Commission received Returns outwards 3,300 46,000 3,500 2,500 1,000 291,400 3,100 10,000 15,000 3,300 3,000 120,000 Discounts allowed Wages and salaries Carriage inwards Returns inwards Carriage outwards Purchases Utilities expenses Insurance Audit fees Bad debts General expenses Machinery at cost Motor vehicles at cost 86.000

The following is the trial balance of Gagah Sdn. Bhd. as at 30 April 2021: Trial balance as at 30 April 2021 Debit RM Credit RM Ordinary shares 7% preference shares 6% debentures (repayable year 2030) General reserve Retained earnings as at 1 May 2020 Discounts received 300,000 150,000 160,000 18,000 50,000 12,000 442,500 15,400 10,400 Sales Commission received Returns outwards 3,300 46,000 3,500 2,500 1,000 291,400 3,100 10,000 15,000 3,300 3,000 120,000 Discounts allowed Wages and salaries Carriage inwards Returns inwards Carriage outwards Purchases Utilities expenses Insurance Audit fees Bad debts General expenses Machinery at cost Motor vehicles at cost 86.000

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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