Question

QUESTION I Eucalyptus Berhad, a limited company, eloses its accounts on March 31 every year. The company reported the following unadjusted trial balance on March 31, 2017: Debit Credit RM RM 1,049,800 Revenue 584,200 60,000 822,100 Cost of sales Intangible asset Property, plant and equipment (at book value) Long term investment Inventories 200,000 76,700 52,800 93,900 Trade receivable (at realisable value) Cash and cash equivalent 6% Loan from hank 100,000 30,000 8% Note receivable Trade payable Administrative expenses Distribution expenses Income tax Propaid insurance Income from investment Ordinary share capital Retained earnings (as on April 1, 2016) 75,600 183,900 86,900 9,600 5,000 80,200 500,000 442,400 42,900 Dividend 2,248,000 2,248,000 The followings are yet to be adjusted as at year end: 1. The inventory has a net realisable value of RM75,000. 2. The loan from bank was obtained on October 1, 2016. No interest has been paid to date. 3. The note receivable was received on January I, 2017. The amount due, together with its interest, are to be received on June 30, 2017. 4. The prepaid insurance was paid on December 28, 2016, for 6 months beginning January 2017. Insurance is part of administrative expense.

Answer 1

Statement of profit and loss account
Particulars	Debit	Particulars	Credit
Opening Stock (Note 1)	76,800.00	Revenue	1,049,800.00
Cost of sales	584,200.00	Inventories	75,000.00
Administrative Expenses	183,900.00	Income from Investment	80,200.00
Insurance(Prepaid Expenses )	2,500.00
Distribution Expenses	86,900.00
Income tax paid	9,600.00
Dividend Paid	42,900.00
Depreciation
Building	17,500.00
Office Equipment	37,600.00
Intangible Fixed assets	6,000.00
Interest on 6% loan Payable	3,000.00
Net Profit	1,54,100
Total	1,050,900.00	Total	1,205,000.00

Note 1:It is assume that opening stock of inventory is balancing fig of balance sheet.

Balance sheet as on March 31,2017
Equity & Liability	Amount	Asset's	Amount
Sharehoder's Fund		Fixed assets
Share Capital	500,000.00	Tangible fixed assets	902,100.00
Retained Earnings	442,500.00	Less:Depreciation	(55,100.00)
Profit of current year	154,100.00
Other Comprehensive income	80,000.00	Net Intangible fixed assets	54,000.00
		Long term investmet	200,000.00
Long term liabilities
6% Loan from Bank	100,000.00	Current Assets
		Inventories	75,000.00
Current Liabilities		Trade Receivable	52,800.00
Trade Payable	75,600.00	Cash and cash equivalent	93,900.00
Interest on 6% loan Payable	3,000.00	Prepaid Expenses	2,500.00
		8% Note Receivable	30,000.00
Total	1,355,200.00	Total	1,355,200.00