Question

Pearl Berhad, a limited company, closes its accounts on March 31 every year. The company reported the following unadjusted trial balance on March 31, 2017: Debit Credit RM RM Revenue 1,049,800 Cost of sales 584,200 Intangible asset Property, plant and equipment (at book value) Long term investment 60,000 822,100 200,000 Inventories 76,700 Trade receivable (at book value) 52,800 Cash and cash equivalent 93,900 6% Loan from bank 100,000 8% Note receivable 30,000 Trade payable Administrative expenses Distribution expenses 75,600 183,900 86,900 Income tax 9,600 Prepaid insurance 5,000 Income from investment 80,200 Ordinary share capital Retained earnings (as on April 1, 2016) Dividend 500,000 442,400 42,900 2,248,000 2,248,000 The followings are yet to be adjusted as at year end: 1. The loan from bank was obtained on October 1, 2016. No interest has been paid to date. 2. The note receivable was received on January 1, 2017. The amount due, together with its interest, are to be received on June 30, 2017. 3. Property, plant and equipment consists of: Accumulated Depreciation Cost RM RM Freehold land Building Office equipment 400,000 105,900 350,000 305,000 127,000

Answer 1

Answer:

PEARL BERHAD STATEMENT OF PROFIT & LOSS For Year Ended March 31, 2017 RM Revenue Income from investment Interest revenue ($30,000 x 8% x 3/12) Total revenue $ $ $ $ RM 10,49,800 80,200 600 11,30,600 $ $ Expenses: Cost of goods sold | Administrative expense Distribution expense Depreciation expense Interest expense ($100,000 x 6% x 6/12) Amortization expense ($60,000 / 10) Income tax Total expense Net Income 5,84,200 1,83,900 86,900 53,100 3,000 6,000 9,600 $ $ 9,26,700 2,03,900

PEARL BERHAD COMPREHENSIVE INCOME STATEMENT For Year Ended March 31, 2017 Net Income Other comprehensive income Revaluation surplus ($480,000 - 400,000) Comprehensive Income $ 2,03,900 | $ $ 80,000 2,83,900

PEARL BERHAD Statement of Retained Earnings For the year ended March 31, 2017 Retained earning April 01, 2016 Add: Net income Less: Dividends Retained earning March 31, 2017 $ $ $ $ 4,42,400 2,03,900 42,900 6,03,400

PEARL BERHAD Statement of changes in Stockholder's equity For the year ended March 31, 2017 Ordinary share capital $ Add: Retained earning March 31, 2017 $ Add: Other comprehensive income $ Stockholder's equity March 31, 2017 $ 5,00,000 6,03,400 80,000 11,83,400