The following trial balance relates to Appleland Sdn Bhd as at 31st March 2022: Debit RM'000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following trial balance relates to Appleland Sdn Bhd as at 31st March 2022: Debit RM'000 Revenue (note (i)) Cost of sales Distribution cost Administrative expenses Interest expense Provision for taxation (note (iv)) Ordinary share at RM0.50 each Retained earnings as at 1.4.2021 Land and Buildings - at cost (land is RM10 million) (note (ii)) Plant and equipment -at cost (note (ii)) Accumulated depreciation: - Buildings as at 1.4.2021 - plant and equipment as at 1.4.2021 Closing stock as at 31st March 2022 Accounts Receivable Bank Deferred tax Accounts Payable and Provision 403,500 21,500 30,900 700 60,000 94,500 43,700 42,200 8,000 705,000 ======== Credit RM'000 550,000 1,200 50,000 11,200 20,000 24,500 3,000 45,100 705,000 ======= The following notes are relevant: (i) Sales Revenue: Revenue includes a credit sale of RM5 million of goods made to a new customer on 1st February 2022 and its related cost of the goods at the date of sale was RM3.5 million. In view of it is a new customer, the marketing director allows this customer to return the goods to Appleland Sdn Bhd at any time within three months of the sale. No sales return is allowed after the time lapse. (ii) Non-Current Assets: On 1st October 2021, Appleland Sdn Bhd terminated the production of one of its product lines. From this date, the plants used to manufacture the product has been disposed of at an advertised price of RM8.4 million which is considered realistic. It is included in the trial balance at a cost of RM18 million with accumulated depreciation as at 1st April 2021 of RM10 million. On 31st March 2022, the directors of Appleland Sdn Bhd decided that the financial statements would show an improved position if the land and buildings were revalued to market value. At that date, an independent valuer valued the land at RM12 million and the buildings at RM35 million and these valuations were accepted by the directors. The remaining life of the buildings as at 1st April 2021 was 10 years. Appleland Sdn Bhd did not make a transfer to retained earnings for excess depreciation. Ignore deferred tax on the revaluation of assets. a) (iv) Income Tax: Appleland Sdn Bhd estimates that an income tax provision of RM14.2 million is required for the year ended 31st March 2022. The balance on current tax in the trial balance represents the under / overprovision of the tax liability for the year ended 31st March 2021. b) Required: c) Plant and equipment is depreciated at 15% per annum using the reducing balance method and time apportioned as appropriate. d) All depreciation is charged to cost of sales, but none has yet been charged on any non-current asset for the year ended 31st March 2022. e) Dividend Paid: On 31st March 2022, director of Appleland Sdn Bhd paid a dividend of RM0.01 per share to all its ordinary shareholders but this transaction was omitted from the financial record. Prepare the journal entries with narrative note to record all the transactions as stated above. (35 marks) Prepare the statement of profit or loss and other comprehensive income for the year ended 31st March 2022 of Appleland Sdn Bhd. (16 marks) Prepare the statement of changes in equity as at 31st March 2022 for Appleland Sdn Bhd. (7 marks) Prepare the statement of financial position as at 31st March 2022 for Appleland Sdn Bhd. (22 marks) (7 marks) Explain the accounting treatment in respect of Note 1. The following trial balance relates to Appleland Sdn Bhd as at 31st March 2022: Debit RM'000 Revenue (note (i)) Cost of sales Distribution cost Administrative expenses Interest expense Provision for taxation (note (iv)) Ordinary share at RM0.50 each Retained earnings as at 1.4.2021 Land and Buildings - at cost (land is RM10 million) (note (ii)) Plant and equipment -at cost (note (ii)) Accumulated depreciation: - Buildings as at 1.4.2021 - plant and equipment as at 1.4.2021 Closing stock as at 31st March 2022 Accounts Receivable Bank Deferred tax Accounts Payable and Provision 403,500 21,500 30,900 700 60,000 94,500 43,700 42,200 8,000 705,000 ======== Credit RM'000 550,000 1,200 50,000 11,200 20,000 24,500 3,000 45,100 705,000 ======= The following notes are relevant: (i) Sales Revenue: Revenue includes a credit sale of RM5 million of goods made to a new customer on 1st February 2022 and its related cost of the goods at the date of sale was RM3.5 million. In view of it is a new customer, the marketing director allows this customer to return the goods to Appleland Sdn Bhd at any time within three months of the sale. No sales return is allowed after the time lapse. (ii) Non-Current Assets: On 1st October 2021, Appleland Sdn Bhd terminated the production of one of its product lines. From this date, the plants used to manufacture the product has been disposed of at an advertised price of RM8.4 million which is considered realistic. It is included in the trial balance at a cost of RM18 million with accumulated depreciation as at 1st April 2021 of RM10 million. On 31st March 2022, the directors of Appleland Sdn Bhd decided that the financial statements would show an improved position if the land and buildings were revalued to market value. At that date, an independent valuer valued the land at RM12 million and the buildings at RM35 million and these valuations were accepted by the directors. The remaining life of the buildings as at 1st April 2021 was 10 years. Appleland Sdn Bhd did not make a transfer to retained earnings for excess depreciation. Ignore deferred tax on the revaluation of assets. a) (iv) Income Tax: Appleland Sdn Bhd estimates that an income tax provision of RM14.2 million is required for the year ended 31st March 2022. The balance on current tax in the trial balance represents the under / overprovision of the tax liability for the year ended 31st March 2021. b) Required: c) Plant and equipment is depreciated at 15% per annum using the reducing balance method and time apportioned as appropriate. d) All depreciation is charged to cost of sales, but none has yet been charged on any non-current asset for the year ended 31st March 2022. e) Dividend Paid: On 31st March 2022, director of Appleland Sdn Bhd paid a dividend of RM0.01 per share to all its ordinary shareholders but this transaction was omitted from the financial record. Prepare the journal entries with narrative note to record all the transactions as stated above. (35 marks) Prepare the statement of profit or loss and other comprehensive income for the year ended 31st March 2022 of Appleland Sdn Bhd. (16 marks) Prepare the statement of changes in equity as at 31st March 2022 for Appleland Sdn Bhd. (7 marks) Prepare the statement of financial position as at 31st March 2022 for Appleland Sdn Bhd. (22 marks) (7 marks) Explain the accounting treatment in respect of Note 1.
Expert Answer:
Answer rating: 100% (QA)
a 1 Date April 1 2021 Description Land and Buildings Revaluation Debit Land and Buildings 12000000 Credit Accumulated Depreciation Buildings 4000000 Credit Retained Earnings 8000000 Narrative Revaluat... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
The following trial balance relates to Amethyst as at 31 March 2015: The following information is relevant: 1. After the year end stock take it was discovered that goods worth $4 million, which were...
-
Q2 The following trial balance relates to HAJIA Company Itd as at 30/9/2012: GHSO00 GHSO00 Revenue 211,900 Cost of sales 136,800 Distribution cost 12,500 Administrative expenses 18,000 Loan note...
-
The following trial balance (Figure 3.30) was prepared incorrectly. a. Rearrange the accounts in proper order. b. Calculate the total of the trial balance. (Small numbers are used intentionally so...
-
Dale and Roy formed a partnership early this year. Dale contributed $150,000 cash in exchange for a 50% interest in the partnership. Roy contributed land with a tax basis of $90,000, and a fair...
-
For the steel countershaft specified in the table, find the deflection and slope of the shaft at point A. Use superposition with the deflection equations in Table A9. Assume the bearings constitute...
-
A Markov chain model for the rally point method for scoring a volleyball game was studied in Section 10.1, Exercise 36. What are the communication classes for this Markov chain? Data From Section...
-
Is the kinetic energy of the two-cart system in Figure 6.12 in the zero-momentum reference frame less than, equal to, or greater than the system's kinetic energy in the Earth reference frame? Figure...
-
The management of Russel Inc. is trying to decide whether it can increase its dividend. During the current year, it reported net income of $875,000. It had cash provided by operating activities of...
-
1 Explain briefly about six sigma and capacity maturity models? 2 Explain about the contemporary management practices taking place in Indian business model? 3 4 What is performance management?...
-
The financial statements of JJ Ltd and KK Ltd for the year to 30 June 2018 are shown below: Statements of comprehensive income for the year to 30 June 2018. Statements of financial position as at 30...
-
Fischer and Spassky play a chess match in which the first player to win wins the match. After 10 consecutive draws, the match is declared drawn. Each game is won by Fischer with a probability of 0.4,...
-
What is the relationship between positive homogeneity of a production function and an elasticity of production with respect to scale of inputs?
-
Until when is it worth for a trader to block allocations accepted by other traders?
-
There is given. a CES production function of a form: f(x 1 , X 2 ) = (ax + ax2), 0, a > 0, i = 1, 2, y (-; 0) U (0; 1). Let us assume that a variable u = 12 describes a quantity of the second...
-
George is a wealthy thirteen-year-old who owns an expensive painting. He signs a contract to exchange the painting for a valuable horse owned by Helen, an equally wealthy twelve-year-old. Both George...
-
Is it proper to distinguish between a short- and a long-term strategy in view of limited or unlimited resources of production factors?
-
An electrician invested $9,000 in an investment account paying 2.45% interest compounded semiannually. After 30 years, the value of the account will have a balance of $18,685.71. If the electrician's...
-
What key concerns must functional tactics address in marketing? Finance? POM? Personnel?
-
Delta owned two assets which were sold on 1 April 20X1 - the first day of Delta's accounting period. Both assets were sold for their fair value. Details of the sales are as follows: Asset 1 Asset 1...
-
Under a contract between a customer, Charlie (C) and a freight carrier Solutions Ltd (S), S provides C with 10 rail cars for five years. The cars, which are owned by S, are specified in the contract....
-
Rumpus plc is a public listed manufacturing company. Its summarized consolidated financial statements for the year ended 31 March 2014 (and 2013 comparatives where relevant) are as follows: Rumpus...
-
a. For the allowed energies of a particle in a box to be large, should the box be very big or very small? Explain. b. Which is likely to have larger values for the allowed energies: an atom in a...
-
The molecules in the rods and cones in the eye are tuned to absorb photons of particular energies. The retinal molecule, like many molecules, is a long chain. Electrons can freely move along one...
-
What was the approximate activity of the plutonium source at the start of the mission? A. \(2 \times 10^{21} \mathrm{~Bq}\) B. \(2 \times 10^{19} \mathrm{~Bq}\) C. \(2 \times 10^{17} \mathrm{~Bq}\)...
Study smarter with the SolutionInn App