Following from scenario 1, the oil palm plantation process begins with the planting of oil palm seedlings. It takes approximately five years to grow the tree until it can produce its own fruit. The oil palm fruit can be harvested after two years grown on the tree and can be continually harvested for the next 20 years. The harvested oil palm fruit is sold to other companies which manufacture various oil palm products. Once the oil palm tree cannot produce fruit anymore, the trees will be cut down and sold as scrap.

The following information is related to the agriculture activities incurred during financial year 2019:

1. The company harvested 280 tan metrics of oil palm fruit with average fair value of RM1,200 per tan metric. The cost incurred to sell the fruits is estimated to be 3% of the oil palm fruit price.

2. The company is entitled to receive a grant of RM100,000 from the Ministry of Agriculture. The grant is earned once the company is able to produce more than 200 tan metrics of oil palm fruit by 30 June 2019.

The company’s financial year ends on 30 June every year.

Q24: Cr __________________ (Indicate the account name and amount like: Rental RM1,000)

The journal entries related to the oil palm fruits are, Q25-26:

Q25: Dr __________________ (Indicate the account name and amount like: Rental RM1,000)

Q26: Cr __________________ (Indicate the account name and amount like: Rental RM1,000)

Q27. Refer to scenario two, AB should regard the grant of RM100,000 as conditional grant? (Indicate whether it is True or False) _________.

The journal entries related to the grant are, Q28-29:

Q28: Dr __________________ (Indicate only the account name)

Q29: Cr __________________ (Indicate only the account name)

30. For certain agriculture produce like mangoes, durian, grapes; they will be ready to be sold or used as a raw materials for subsequent production process (such as grapes are processed and produced as wines). The accounting treatment on these harvested agriculture produce shall follow MFRS102 Inventories, and the fair value less cost to sell of the agriculture produce would become the________ for measurement of the inventory.

31. Unconditional government grant refers to grant that can be recognised as income only when the conditions attached to the receipt of the grant is met. (Indicate whether it is True or False) _________.

32. An entity can either capitalize or ___________ the subsequent costs like cost of feeding, veterinary services and slaughtering for animals, and planting, fertilizing and harvesting for plants.

33. The loss of biological asset or agricultural produce due to natural disaster or environmental pollution, is recognised in the statement of comprehensive income as ____________.

Answer rating: 100% (QA)

answer 24 Inventory RM 325920 33600010080 25 cost of goods sold RM 10080 3360003 cash R... View the full answer