QUESTION 1

A)

1. Share capital-preference. (C) 11. Accumulated other comprehensive income. ( C )

2. Goodwill. (A) 12. Notes payable (due next year). (D)
3. Salaries and wages payable. (E) 13. Supplies. (B)
4. Accounts payable. (E) 14. Share capital – ordinary. (C )
5. Buildings. (A) 15. Land. (A)
6. Trading securities (B) 16. Bonds payable. (E)
7. Current portion of long-term debt. ( E ) 17. Inventory. (B)
8. Patents. ( A ) 18. Prepaid insurance. (B)
9. Allowance for doubtful accounts. ( B ) 19. Income tax payable. (E)
10. Accounts receivable. (B) 20. Deferred tax liabilities. (D)

B)
(a) Loss on inventory write-down ( Other comprehensive income)
(b) Loss from strike ( Gross profit )
(c) Bad debt expense ( Expenses )
(d) Loss on disposal of a component of a business ( Other comprehensive income )
(e) Gain on sale of an machinery ( Other income and expense)
(f) Interest expense ( Finance cost )
(g) Depreciation expense ( Expenses )
(h) Interest revenue (Revenue under revenue and expense section )

1
Question 2)

Journal Entries Annur Bhd

Date Particulars Debit Credit

31 Dec Depreciation expense- Buildings 1000000

2018
Accumulated depreciation 1000000

(To record buildings expense)

Depreciation expense – Equipment 800000

Accumulated Depreciation 800000

(To record equipment expense)

Insurance expense 15000

Prepaid Insurance 15000

( To record purchase of prepaid insurance)

Trade Receivable 150000

Sales Revenue 150000

( To record unbilled service revenue)

Salaries and wages expense 35000

Salaries and wages payable 35000

(To record accrued and unpaid salaries and

wages)

2
 Annur Bhd.
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2018

RM RM

Sales revenue (200000000 +150000) 20150000

(-) Sales returns and allowance (10000)
Net sales 20140000
(-) COGS 15000000
Gross Profit 5140000
(-) Expenses
Depreciation expenses- building (1000000)
Depreciation expenses – equipment (800000)
Bad debt expenses (32000)
Salaries and wages expense (420000)
Insurance expense (15000) (2267000)

Other income & expenses:

Share of profit associates 200000
Property tax expense (52000) 148000

(-)Finance cost 30000

Profit before tax 2991000
Income tax expense (820000)
Profit from continued operations 2171000

Discontinued Operation:
Profit from discontinued operations 23000
Net Profit for the financial year 2194000

Other comprehensive income:

Gain on revaluation of properties 100000
Loss on foreign translation (32000)
Loss on the disposal of the buildings 51000
(17000)
Total comprehensive income for the year 2245000

3
b)

Annur Bhd
Statement of Financial Position
As at 31 December 2017
Assets:
Current assets:
Cash 4500000
Inventory 541000
Prepaid insurance (30000-15000) 15000
Trade Receivable (300000 + 150000) 450000
Short-term Investment 37000
Total current assets 5543000
Non-Current assets:
Building 25000000
(-) Accumulated depreciation 5000000 20000000
(4000000 +1000000)
Equipment 8000000
(-) Accumulated depreciation (3200000 + 4000000 4000000
800000)
Intangible assets 50000
Land 550000
Investment in associate companies 150000
Total non-current assets 24750000
TOTAL ASSETS: 30293000
Liabilities:
Current liabilities
Notes Payable 40% 400000
Bonds payable 30% 900000
Unearned service revenue 220000
Trade Payable 1030000
Salaries and wages payable 55000
(35000+20000)
Total current liabilities 2605000
Non-Current liabilities:
Bonds payable 70% 2100000
Notes payable 60% 600000
Long term finance lease liability 10497000
Total non-current liabilities 13197000
Total liabilities 15802000
Equity:
Retained earnings (4953000 + 2194000) 7147000

4
 Share capital 7000000
Foreign translation reserve 43000
Revaluation reserve (51000 + 250000) 301000 14491000
TOTAL Liabilities & Equities 30293000

B) Paragraph 66 of MFRS 101 Presentation of Financial Statements highlights four criteria

for an asset to be classified as current asset. State any TWO (2) of the criteria.

1. is expected to be realised in, or is held for sale or consumption in, the normal course of the
enterprise’s operating cycle.

2. is held primarily for trading purposes or for the short term and expected to be realised within
twelve months of the balance sheet date;

5
Question 3

a) Journal Entries Wendy’s Smile Bhd

Date Account Debit Credit

2018 Furniture and Fittings 17000

31 Jan Cash 12750
Trade Payable 4250

(To record purchased new furniture and fittings with 25% on

credit and the balance paid with cash)
Depreciation Expense 875
Accumulated Depreciation – Furniture and Fittings 375
Accumulated Depreciation – Office Buildings 500

( To record furniture and fitting and office buildings)

Bonus Expense 50000
Bonus Payable 50000
( To record bonus expense that will be made on 15 february
2018)
Cash 11245
Unearned Revenue 11245
(To record service revenue)
Salary and Wages Expense 28050
Salary and Wages Payable 4950
Cash 33000

(To record salarr and wages expense and accrued salary)

Interest Expense 100
Interest Payable 10000
Cash
10100
(To record issued notea payable and its interest)

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b)

Wendy’s Smile Bhd

Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 Jan 2018
RM RM
Revenue
Advertising Revenue 88888
(-) Sales Discounts (2500)
Total Revenue 86388

(-) Expenses
Deprecition Expenses (8000 +875) 8875
Office Expense 5245
Utility Expense 7600
Salary and Wages Expense (34472 + 28050) 62522
Bonus Expense 50000
Total Expenses 134242
(47854)
Other Incomes and Expenses
Interest Income 6000
(-) Interest Expense (5400)
Loss on Disposal of Equipment (5528) (4928)
Loss Before Tax (52782)
(-) Income Tax Expense (11600)
Loss After Tax (64382)

Other Comprehensive Income

Net Change Available for Sale Financial Assets 9800
Net Change Cash Flow 4000 13800
Total Comprehensive Income (50582)

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c)
Wendy’s Smile Bhd
Statement of Financial Position
As at 31 January 2018
Assets: RM RM RM
Current assets:
Deposits, Cash and Bank balances 35383
Trade Receivables 86555
(-) Allowance for Doubtful Debts (12104) 74451
Prepaid Insurance 1022
Total Current Assets 110856

Non- Current Assets :

Furniture and Fittings 62000
(-) Accumulated Depreciation (7600 + 375) (7975) 54025
Office Buildings 62220
(-) Accumulated Depreciation (23800 + 500) (24300) 37920
Goodwill 13000
Deffered Tax Asset 6500
Total Non-Current Asset 111445
222301

Current Liabilities :
Trade Payable (41019 + 4250) 45269
Salary and Wages Payables (25000 - 4950) 20050
Unearned Revenue (35100 + 11245) 46345
Bonus Payable 50000
Total Current Liabilities 161664

Non-Current Liabilities :
Notes Payable (12000 – 10000) 2000 2000

Equity :
Share Capital- Ordinary shares 31019
Retained Earnings (78200 – 64382) 13818
Reserves (9800 + 4000) 13800

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 58637
222301