FACULTY OF BUSINESS, MANAGEMENT AND SOCIAL SCIENCES

BFI1101 FINANCIAL ACCOUNTING AND REPORTING

MAY 2015 SEMESTER
Tutorial 7

Question 1

Below is a trial balance of Lily Sdn Bhd as at 31 December 2009.

Debit Credit
RM RM
Sales 1,300,000
Cost of sales 600,000
Administrative expenses 25,340
Sales and distribution expenses 20,000
Directors' remuneration 760
Finance expenses 8,000
Dividend income 2,680
Land 100,000
Building 800,000
Plant and machinery 146,000
Accumulated depreciation at 31 December 09
Building 50,000
Plant and machinery 72,000
Investment property 8,400
Intangible asset 7,600
Inventory 30,000
Trade receivable 38,000
Bank balance 95,000
Trade payable 34,000
Tax paid 45,000
Long term loan 20,000
Share capital @ RM1.00 each 300,000
Share premium 60,000
Retained earnings 1 Jan 2009 69,420
10% Debentures 16,000

1,924,100 1,924,100
Additional information:

a) Included in intangible asset is a research cost to gain new knowledge for administrative
purposes. The amount spend on this research project is RM5,000.

b) The company paid a dividend for the year of 20% on the issued capital on May 2009.

c) During the year, the company incur a project amounting RM4,000 which is on development
phase and ready to sell in the market. The future economic benefit is RM7,000 while further
development cost is RM2,300. This has not been reflected in the books and the
management decided to capitalised it under intangible asset.

d) One of the company’s building has been deteriorated due to flash flood. The company
expected that the recoverable amount to be lower by RM50,000 from its carrying amount.

e) The company apply fair value to measure the investment property. The fair value of the
above investment property as at 31 December 2009 is RM9,400.

Required

a) Statement of comprehensive income for the year ended 31 December 09 (expenses classify
by function)

b) Statement of change in equity for the year ended 31 December 09

c) Statement of financial position as at 31 December 09.