1. The net realizable value of the inventories as at 15 February 2020 is RM1,500,000.
2. Freehold land consists of Land Jelebu and Land Kemaman with carrying value of RM4,000,000 and RM4,400,000 respectively. The agent convinces that the Land Jelebu is appraised to RM5,000,000, whereas, Land Kemaman is decreased by RM1,500,000. The company adopts the revaluation model.
3. A machine costing RM250,000 was disposed on 1 October 2019 for RM100,000 at a gain of RM50,000. This transaction has not yet been recorded.
4. Depreciation is to be treated as administrative expenses except for motor vehicles to be treated as distribution costs. The depreciation charged as follows:
• Building Useful life of 50 years
• Plant and machinery Straight-line method at 10% yearly basis
• Motor vehicles Reducing balance method at 20% yearly basis
5. A provision is to be made for:
• Directors’ emoluments RM400,000
• Auditors’ fees RM480,000
6. The board of directors declared a final dividend for ordinary shares of RM1,000,000 and 10% preference shares.
7. An amount of RM1,000,000 of a 10% bond is to be paid next year. The interest is yet to be paid.
8. The tax expense for the year was RM800,000.

Required:
a. A Statement of Profit or Loss and Other Comprehensive Income EcoTop Bhd for the year ended 31 December 2019.
b. A Statement of Changes in Equity for EcoTop Bhd for the year ended 31 December 2019.
c. The Statement of Financial Position of EcoTop Bhd as at 31 December 2019.
(A note on property, plant, and equipment is required)

 

Transcribed Image Text:

QUESTION 1 EcoTop Bhd was incorporated with an authorized capital of RM60,000,000 consisting of RM40,000,000 ordinary shares and RM20,000,000 10% preference shares. The folowing is the trial balance of the company as at 31 December 2019. Debit Credit RM RM Retained profit as at 1 January 2019 Ordinary share capital 10% preference shares Freehold land Building (at valuation) Plant and machinery (at cost) Motor vehicle (at cost) Accumulated depreciation as at 1 January 2019: - Building - Plant and machinery - Motor vehicles 12,640,000 8,400,000 4,800,000 8,400,000 6,880,000 8,400,000 6,720,000 4,520,000 2,720,000 960,000 Cost of sales 5,440,000 15,800,000 Sales Administrative expenses Distribution expenses 10% bond 3,600,000 2,640,000 3,200,000 2,560,000 2,240,000 General reserve Revaluation reserve Interest on bond 160,000 2,160,000 Trade receivables 4,384,000 Trade payables Long term investments Income on investments 4,040,000 384,000 Interim dividends: - Ordinary dividends - 10% preference dividends Inventories Тах рaid Cash at bank 680,000 240,000 1,680,000 2,400,000 9,168,000 62,608.000 62.608,000 QUESTION 1 EcoTop Bhd was incorporated with an authorized capital of RM60,000,000 consisting of RM40,000,000 ordinary shares and RM20,000,000 10% preference shares. The folowing is the trial balance of the company as at 31 December 2019. Debit Credit RM RM Retained profit as at 1 January 2019 Ordinary share capital 10% preference shares Freehold land Building (at valuation) Plant and machinery (at cost) Motor vehicle (at cost) Accumulated depreciation as at 1 January 2019: - Building - Plant and machinery - Motor vehicles 12,640,000 8,400,000 4,800,000 8,400,000 6,880,000 8,400,000 6,720,000 4,520,000 2,720,000 960,000 Cost of sales 5,440,000 15,800,000 Sales Administrative expenses Distribution expenses 10% bond 3,600,000 2,640,000 3,200,000 2,560,000 2,240,000 General reserve Revaluation reserve Interest on bond 160,000 2,160,000 Trade receivables 4,384,000 Trade payables Long term investments Income on investments 4,040,000 384,000 Interim dividends: - Ordinary dividends - 10% preference dividends Inventories Тах рaid Cash at bank 680,000 240,000 1,680,000 2,400,000 9,168,000 62,608.000 62.608,000

Answer rating: 100% (QA)

a Statement of profit and loss of Ecotop Bhd for the year ended 31st December 2... View the full answer