Question

QUESTION 1 Princess Nur Sdn Bhd, a private company, closes its accounts on December 31 every year The company reported the following unadjusted trial balance on 31 December, 2017 Debit RM 70.000 740,000 Credit RM 74,000 35,000 9,600 100,000 800,100 18,100 519,050 7,800 Land Buildings at cost Accumulated depreciation building Cash and cash equivalent Prepayment Franchise Sales revenue Sales retum Cost of sales Other income Inventory Trade receivables Allowance for doubtful account Uneamed rent revenue Administrative expenses Other operating expenses Tax expense Trade payables Other payables 12% Long-term loan Ordinary share capital Retained carings (as at 1/1/2017) Finance costs 96,000 38,000 2,950 4,800 82,000 39,700 8,600 53.000 6.000 60.000 640.000 74.800 3,600) 1,741.550 1.741.350 The following adjustments were unrecorded at year end December 31, 2017 1 The long-term loan, finance cost is at 12% per year. The first half year's finance cost has been paid and recorded. The remaining six months finance cost is accrued alvear end 2. The prepayment account is a 2-year insurance expense paid in advance where the insurance cover from September 1, 2017 Insurance expense is treated as an administrative expense. 3. It is the company's policy to provide annual depreciation of the building at $ per year on cost. Depreciation is treated as a cost of sales experts The uncanned rent revenue account recorded four months revenue collected in advance on December 1, 2017. The rent revenue is earned evenly over the four months RM1,400 of accounts receivable was determined to be uncollectable and will be written ofl. Bad debt expense is estimated at 0.25% of net sales revenue 6. The land is to be revalued to RM180,000 7. On December 28, 2017, the company declared a 5% dividend on ordinary shares payable on January 10, 2018

Answer 1

Answer-a:

PRINCESS NUR SDN.BHD. Statement of Profit or Loss and Other Comprehensive Income For the Year Ended December 31, 2017 Sales revenue Cost of sales Gross profit Other income (7800+(4800/4*1)) Administrative expense Other operating expense Finance cost (3600+3600) Profit before tax Income tax expense Net profit after tax Other comprehensive income: Revaluation of Land (180000-70000) Total comprehensive income RM 818200 (519050) 299150 9000 122555 39700 7200 138695 8600 130095 110000 240095

Working on administrative expense As per draft Depreciation building Insurance cost (9600/24*4) Bad debts expense (782000* 25/100) Total RM 82000 370001 1600 1955 122555

Answer-b:

Statement of Changes in Equity For the Year Ended December 31, 2017 Share Retained capital earnings Reserve As at (1/1/2017) 640000 74800 PAT 130095 Dividend declared (32000) Revaluation_Land 110000 As at (31/12/2017) 640000 172895 110000

Answer-c:

PRINCESS NUR SDN.BHD. Statement of Financial Positions For the Year Ended December 31, 2017 RM Non-current assets Property, plant and Equipment 809000 Current assets Bank Prepaid (9600-1600) Franchisee Inventory Trade receivable (38000-1400-3505) 35000 8000 100000 96000 33095 1081095 Equity Share capital Retained earnings Reserve 640000 172895 110000 Non-current liabilities 12% Long-term loan 60000 3600 Current liabilities Unearned rent revenue (4800-1200) Accruals Trade payable Other payables 3600 53000 38000 1081095

Notes to account Land Building Cost/valuation As at (1/1/2017) Revaluation Accum. Depreciation (74000+37000) As at (31/12/2017) 70000 740000 110000 11110001 180000 629000