CONFIDENTIAL

FINAL EXAMINATION

COURSE : COMPANY ACCOUNTS AND REPORTING

COURSE CODE : PFA3163

DURATION : 3 HOURS

INSTRUCTIONS TO CANDIDATES :

1. This question paper consists of THREE (3) questions.

2. Answer ALL questions.

3. Please check to make sure that this examination pack consists of :

i. The Question Paper

4. Please write your answer using a ball-point pen on foolscap paper. The answer need to
be submitted to your respective lecturer using Scanner Apps:

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ii. Scan and email the answer (in PDF).

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MYKAD NO : _____________________________________________________
ID. NO. : _____________________________________________________
LECTURER : _____________________________________________________
SECTION : _____________________________________________________

DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO

The question paper consists of 5 printed pages

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 CONFIDENTIAL
FEB2021/G/PFA3163

1. (15 points)

A.
TMCable Bhd was incorporated on 1 July 2019. On 1 Jan 2020, TMCable Bhd offered
5,000,000 units ordinary shares capital at RM2.00 payables as follows:
Application RM 0.80
Allotment RM 0.80
Final call RM 0.40
Applications for 5,200,000 units ordinary shares were received by TMCable. Any surplus
money on oversubscription of ordinary shares will be refunded.

Required:
Journalize the above transactions. (10 points)

B.
On 1 January 2020, Ecoframe Bhd issued 10% debentures with nominal values
RM20,000,000 at a discount of 5%. Transaction costs incurred amounted to RM300,000.
The effective interest rate is 6% and interest date is 31 December 2020.

Required:
Prepare the journal entries for the above transactions where the liability is measured at fair
value. (5 points)

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2. (35 points)

The following balances were extracted from the books of Zoners Bhd. as at 31 December
2020:
Debit (RM) Credit (RM)
Freehold land (at cost) 9,284,500
Building (at cost) 7,880,000
Plant and machinery (at cost) 1,856,000
Motor vehicles (at cost) 288,000
Accumulated depreciation as at 1 January 2020:
Building 788,000
Plant and machinery 742,400
Motor vehicles 64,000
Intangible asset 164,800
Cash at bank 2,550,020
Trade receivables / payables 208,000 174,000
Inventory 153,600
Retained profit at 1 January 2020 1,199,300
General reserve 460,800
3.5% Bank loan 128,000
15,000,000 ordinary shares 15,000,000
960,000 5% preference shares 960,000
Interim ordinary dividend 450,000
Revenue 6,519,600
Cost of sales 2,425,120
Carriage outwards 32,000
Administrative expense 229,200
Selling and distribution expense 103,680
Interest on bank loan 4,480
Tax paid 157,900
Salaries of office staff 300,000
Rental received 44,800
Allowance for doubtful debts (1 January 2020) 6,400
26,087,300 26,087,300

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Additional information:
a. Freehold land was revalued to the fair value of RM9,532,500. The directors decided
to incorporate this value into the accounts.

b. The following provisions are to be made for:

- Company estimated that 5% of the trade receivables will be
uncollectible by the end of the year.
- As at 31 December 2020, the company declared full year preference
dividend and 6% final ordinary dividend.

c. During the year ended 31 December 2020, the directors declared a transfer to
general reserve account amounted to RM31,000.

d. Motor vehicles are to be depreciated based on reducing balance method at the rate
of 15% per annum and is to be treated as distribution expenses. Building and plant
and machinery are to be depreciated based on cost at 2% and 10% per annum
respectively and are to be treated as administrative expenses.

e. Tax charged for the current financial year was RM149,000.

Required:
i. Prepare Statement of Profit and Loss and Other Comprehensive Income for the year
ended 31 December 2020. (14 points)
ii. Prepare Statement of Changes in Equity. (8 points)
iii. Prepare Statement of Financial Position as at 31 December 2020. (7.5 points)
iv. Prepare Notes to the accounts for Property, Plant and Equipment. (5.5 points)
(Show ALL workings)

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3. (30 points)

A comparative Statement for Financial Position for YIK Corporation is presented below:
YIK CORPORATION
Comparative Statement for Financial Position
2020 2019
Assets RM RM
Cash 54,000 40,000
Accounts receivable 50,000 25,000
Inventory 25,000 35,000
Prepaid insurance 22,000 17,000
Land 22,000 40,000
Equipment 70,000 60,000
Accumulated depreciation (20,000) (13,000)
Total Assets 223,000 204,000

Liabilities and Equity

Accounts payable 13,000 6,000
Other payable 3,000 4,000
Tax payable 0 5,000
Bonds payable 30,000 19,000
Ordinary share 140,000 115,000
Retained earnings 37,000 55,000
Total liabilities and equity 223,000 204,000

Additional information:
a. Net loss before tax for year 2020 is RM14,000. No provision for taxation is made for the
year.
b. Cash dividends was declared and paid in 2020.
c. Land was sold for cash at a loss of RM5,000.
d. Equipment with a cost of RM12,000 and accumulated depreciation of RM10,000 was
sold for RM5,000 cash.
e. RM14,000 of bonds were retired during the year.

Required:
Prepare Statement of Cash Flows for the year ended 31 December 2020, using indirect
method.

END OF QUESTION PAPER

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