The following is the preliminary trial balance of La LaBhd. at 31 December 2016: Revenue (note...

    

 

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The following is the preliminary trial balance of La LaBhd. at 31 December 2016: Revenue (note i,) Cost of sales Administrative expenses Sales and distribution expenses Director's remuneration Staff benefits expenses Finance expenses (note iii.) Dividend income Non-current assets - at cost Land Building Plant and machinery Research and development Accumulated depreciation at 1 January 2016 (note vii.) Building Plant and machinery Research and development Investments (note iv.) Inventory (note ii.) Trade receivables Bank Trade payables Bank overdraft (unsecured) Debit Credit RM'000 RM'000 197,980 114,980 18,570 17,450 1,460 1,850 1,560 100,753 66,960 40,770 10,520 5,850 10,570 14,987 8,583 8,890 16,600 22,202 4,208 15,290 770 Tax paid (note vi.) Ordinary share capital 6% Redeemable preference shares Share premium Retained earnings as at 1 January 2016 Deferred tax liability Additional information i. Included in the revenue is an order amounting to RM150,000 which was only delivered to the customer on 15 January 2017. The term of the sale is on credit basis. 3,957 60,000 30,800 12,000 34,910 15,170 418,820 418,820 ii. Closing inventories which were recognised at costs amounting to RM172,700 was ascertained to be damaged and their net realisable. value were RM65,900. Finance expenses of RM1,560,000 includes: RM'000 Interest on bank overdraft Lease rentals 75 1,485 1,560 The lease rentals were for a plant which was used 40% for administrative purposes and 60% for distribution. iv. Investments comprise financial assets valued at: Fair value through profit or loss Fair value through other comprehensive income At amordised cost vii. Carrying Amount RM'000 3,270 2,330 250 5,850 Fair Value RM'000 3,054 2,510 470 6,034 There were no purchases or disposals of any of these investments during the year. Fair value shown above is as at 31 December 2016. V. Dividends on preference shares for the year have not been provided. vi. The tax paid account is related to the tax paid during the year for the current year. The current year's tax expense was estimated to be RM4.5 million inclusive of an increase to deferred tax liability of RM0.8 million of which RM45,000 was related to financial assets at fair value through other comprehensive income. Depreciation expenses based on La La Bbd depreciates its assets on the following basis. The depreciation for the year has not been made: Annual Percentage Building Plant and machinery Reducing Balance Cost All depreciation is charged to cost of sales. (%) 5 10 viii. The research and development expenses shown in the list of balances relates to the capitalised cost of developing a product called Beast. It had an original estimated life of five years. Production and sales of Beast started in January 2015. A review of sales of Beast concluded that the estimated remaining useful life of the product has decreased to 2 years. Required: (a) Prepare the statement of comprehensive income for the year ended 31 December 2016. (12 marks) (b)Prepare the statement of financial position as at 31 December 2016. Note: Clearly show your workings. (18 marks) [Total: 30 marks] The following is the preliminary trial balance of La LaBhd. at 31 December 2016: Revenue (note i,) Cost of sales Administrative expenses Sales and distribution expenses Director's remuneration Staff benefits expenses Finance expenses (note iii.) Dividend income Non-current assets - at cost Land Building Plant and machinery Research and development Accumulated depreciation at 1 January 2016 (note vii.) Building Plant and machinery Research and development Investments (note iv.) Inventory (note ii.) Trade receivables Bank Trade payables Bank overdraft (unsecured) Debit Credit RM'000 RM'000 197,980 114,980 18,570 17,450 1,460 1,850 1,560 100,753 66,960 40,770 10,520 5,850 10,570 14,987 8,583 8,890 16,600 22,202 4,208 15,290 770 Tax paid (note vi.) Ordinary share capital 6% Redeemable preference shares Share premium Retained earnings as at 1 January 2016 Deferred tax liability Additional information i. Included in the revenue is an order amounting to RM150,000 which was only delivered to the customer on 15 January 2017. The term of the sale is on credit basis. 3,957 60,000 30,800 12,000 34,910 15,170 418,820 418,820 ii. Closing inventories which were recognised at costs amounting to RM172,700 was ascertained to be damaged and their net realisable. value were RM65,900. Finance expenses of RM1,560,000 includes: RM'000 Interest on bank overdraft Lease rentals 75 1,485 1,560 The lease rentals were for a plant which was used 40% for administrative purposes and 60% for distribution. iv. Investments comprise financial assets valued at: Fair value through profit or loss Fair value through other comprehensive income At amordised cost vii. Carrying Amount RM'000 3,270 2,330 250 5,850 Fair Value RM'000 3,054 2,510 470 6,034 There were no purchases or disposals of any of these investments during the year. Fair value shown above is as at 31 December 2016. V. Dividends on preference shares for the year have not been provided. vi. The tax paid account is related to the tax paid during the year for the current year. The current year's tax expense was estimated to be RM4.5 million inclusive of an increase to deferred tax liability of RM0.8 million of which RM45,000 was related to financial assets at fair value through other comprehensive income. Depreciation expenses based on La La Bbd depreciates its assets on the following basis. The depreciation for the year has not been made: Annual Percentage Building Plant and machinery Reducing Balance Cost All depreciation is charged to cost of sales. (%) 5 10 viii. The research and development expenses shown in the list of balances relates to the capitalised cost of developing a product called Beast. It had an original estimated life of five years. Production and sales of Beast started in January 2015. A review of sales of Beast concluded that the estimated remaining useful life of the product has decreased to 2 years. Required: (a) Prepare the statement of comprehensive income for the year ended 31 December 2016. (12 marks) (b)Prepare the statement of financial position as at 31 December 2016. Note: Clearly show your workings. (18 marks) [Total: 30 marks]

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a La la Bhds Statement of comprehensive income For the year ended on 31 December 2016 RM000 RM000 Sa... View the full answer