Financial Accounting and Reporting 1

Statement of Cash Flow

Question 1
The following summarised Statement of financial position relate to Rainbow Bhd. at 31
December:
2012
2011
RM000
RM000
RM000
RM000
Land and buildings
700
700
Fixtures and fittings
275
250
Acc. Depreciation
95
180
90
160
Investments
60
60
Stock
174
115
Debtors
65
35
Bank
10
52
1,189
1,122
Ordinary shares (RM1 each fully paid)
Share premium
Retained earnings
8% debentures
Creditors
Tax payable

RM000
790
55
130
120
72
22
1,189

RM000
710
15
180
120
78
19
1,122

Additional Information:
(1) The company issued ordinary shares for cash on 31 July 2012.
(2) An interim dividend of RM12,000 was paid to ordinary shareholders during the year.
(3) Fixtures and fittings costing RM20,000 (book value RM8,000) were sold during the year at a
loss of RM3,000.
(4) Included in trade creditors at 31 December 2012 is an amount of RM8,000 relating to a
fixtures and fittings purchased on credit.
(5) The interest on debentures was paid on 31 December 2012. Interest of RM6,000 was
received during the year.
(6) Current year tax is RM22,000.
Required :
Prepare for Rainbow Bhd. in respect of the year ended 31 December 2012, the Cash Flow
Statement in accordance with MFRS 107.
(Total : 20 marks)
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Financial Accounting and Reporting 1

Statement of Cash Flow

Question 2
The financial statements for QA Bhd. at 31 December 2017 and 2018 are given below:
Statement of financial position as at 31 December
2017
RM000 RM000
Non-current assets
Property, plant and equipment
Less: acc. depreciation
Current assets
Inventory
Accounts
Receivable
Bank
Less: Current liabilities
Accounts Payable
Tax payable
Bank overdraft
Net current assets

915
320

595

2018
RM000 RM000
1,194
412

86

89

34
12
132

28
117

40
28
0

56
36
68

Less: 15% Debenture

Financed by:
Ordinary shares of RM0.025
Share premium
Retained profit

782

64
659
20
639

(43)
739
50
689

450
60
129
639

465
70
154
689

Income Statement for the year ending 31 December 2018

Operating profit
Interest charges for year
Net profit before taxation
Income tax charge for year
Net profit after taxation

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RM000
90
(7)
83
(40)
43

Financial Accounting and Reporting 1

Statement of Cash Flow

Additional information:
1.

2.
3.
4.

Property, plant and equipment which had been purchased on 1 January 2015 for
RM50,000 were sold in March 2018 for RM10,000. Total depreciation of this assets was
RM30,000.
The total interest paid in respect to 20x8 was RM8,000
Interim dividend RM18,000 has also been paid during 20x8.
The ordinary shares were issued for cash.

Required:
Prepare for QA Bhd. the Cash Flow Statement in accordance with MFRS 107 for the year ended
31 December 2018.
(Total : 20 marks)

Question 3
The following are the Statement of financial position of Com Dot. Sdn. Bhd, at 31 December
2014 and 31 December 2015:
2014
RM000
Non-Current Assets
Property, plant and equipment
Accumulated depreciation

RM000

2015
RM000

1,830
680

RM000

1,810
750
1,150

1,060

Current assets
Inventories
Trade receivables
Short-term deposits
Bank
Total assets

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276
165
39
26

270
178
140
101
506

689

1,656

1,749

Financial Accounting and Reporting 1

Statement of Cash Flow

EQUITY AND LIABILITIES

RM000
Capital and reserves
Ordinary shares of RM0.50 each
Share premium account
Accumulated profits

660
250
78

Non-current liabilities
10% loan stock
Current liabilities
Trade payables
Tax payable

RM000

RM000

RM000

900
340
207
988

1,447

300
1,288

50
1,497

192
176

139
113
368
1,656

252
1,749

Income Statement for the year ending 31 December 2015

Operating profit
Finance cost
Net profit before taxation
Income tax charge for year
Net profit after taxation

RM000
420
(12)
408
(185)
223

Additional information:
(1)
(2)

(3)
(4)

Operating profit had been determined after charging depreciation amounting to

RM150,000 on the companys non-current assets for the year to 31 December 2015.
During the year ended 31December 2015, the company sold non-current assets for
RM91,000. These non-current assets had a net book value amounting to RM75,000 at the
time of their disposal.
An interim dividend of RM94,000 was paid on 1 October 2015.
During the year ended 31 December 2015, interest was received of RM18,000 and
loan stock interest paid was RM30,000.

Required:
Prepare a cash flow statement for Com Dot Sdn. Bhd. for the year ended 31 December 2015 in
accordance with the requirements of MFRS 107.
(Total : 20 marks)

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Financial Accounting and Reporting 1

Statement of Cash Flow

Question 4
The following summarised Statement of financial position relate to Taufan Bhd. at 31 March:
Statement of Financial Position at 31 March 2012
Cost
(RM000)

Dep.
(RM000
)

Non Current Assets

Buildings
Machinery
Vehicles

230
985
125

46
255
50

Current Assets
Inventories
Accounts receivables
Bank

257
348
105

710

Less: Current Liabilities

Accounts Payables
Taxation

419
250

669

Less: 10% Debenture

Capital
RM1 Ordinary shares
Retained profit

Net
(RM000)
184
730
75
989

41
1,030
200
830
600
230
830

Income Statement for the year ending 31 December 2013

Operating profit
Finance cost
Net profit before taxation
Income tax charge for year
Net profit after taxation

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RM000
238
(4)
234
(150)
84

Financial Accounting and Reporting 1

Statement of Cash Flow

Statement of financial position at 31 March 2013

Cost
(RM000)
Non Current Assets
Buildings
400
Machinery
1,250
Vehicles
125

Dep.
(RM000)

Net
(RM000)

50
455
75

350
795
50
1,195

Current Assets
Inventories
Accounts Receivable

317
312

629

Less: Current Liabilities

Accounts Payable
Bank overdraft
Taxation

389
85
150

624

Capital
RM1 Ordinary shares
Retained profit

5
1,200
900
300
1,200

During the year ended 31 March 2013, the following transaction took place:
(1) The debentures were redeemed on 30 September 2012. Interest of RM6,000 was received
during the year.
(2) A machine with an original cost of RM34,000 and a book value of RM8,000 was sold for
RM10,000.
(3) An interim dividend of RM14,000 was paid on 1 March 2013.
Required:
Prepare for Taufan Bhd. in respect of the year ended 31 March 2013, the Cash Flow Statement
in accordance with MFRS 107.
(Total: 20 marks)

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