SULIT
MAB1053/A192/A
FINAL ASSESMENT
SEMESTER II, ACADEMIC SESSION 2019/2020
DATE : AUGUST 2020
DURATION : 2 HOURS
MAB1053
FINANCIAL ACCOUNTING AND REPORTING I
(PERAKAUNAN DAN PELAPORAN KEWANGAN I)
INSTRUCTIONS TO CANDIDATES:
1.
This paper contains four (4) questions.
2.
Answer all questions.
3.
All answers must be written in English.
4.
All answers must be clearly written and readable.
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE INSTRUCTED TO DO SO
This question paper has four (4) printed pages excluding this cover page
HAKCIPTA TERPELIHARA USIM
SULIT
MAB1053/A192/A
QUESTION 1
A. State three (3) purposes of Statement of Cash Flows.
(3 marks)
B. Explain the differences between the presentation of cash flows from operating
activities under the direct method and their presentation under the indirect method.
(4 marks)
C. Schawal Berhad is a publicly listed company. Its statement of financial position at 31
December 2019 including comparatives are shown below.
31 Dec 2018
(RM)
40,000
31 Dec 2019
(RM)
55,000
47,000
80,000
Land
Plant
Accumulated depreciation
80,000
130,000
-45,000
252,000
90,000
180,000
-60,000
345,000
Trade accounts payable
Current tax payable
Deferred tax liability
Share capital
Retained earnings
Asset revaluation surplus
23,000
52,000
0
100,000
77,000
0
252,000
65,000
30,000
3,000
150,000
90,000
7,000
345,000
Cash
Trade receivables
Additional information are as follows.
i.
ii.
iii.
iv.
v.
Plant that originally cost RM40,000, and had carrying of RM12,000, was sold for
RM15,000.
There were no acquisitions or disposals of land during the year.
The profit for the year was RM60,000, after income tax expense of RM30,000.
A dividend of RM47,000 was paid during the year.
The only item of other comprehensive income was a gain on revaluation of land
and its associated tax effect.
Required:
Prepare a statement of cash flows for Schawal Berhad for the year ended 31 December
2019, in accordance with MFRS 107 Statement of Cash Flows, using the indirect method.
Show all the workings.
(18 marks)
[Total: 25 marks]
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SULIT
MAB1053/A192/A
QUESTION 2
A. During its first year of operations, Siti Berhad had the following transaction pertaining
to its ordinary shares.
Jan. 10
July 1
Sept. 1
Issued 80,000 shares for cash at RM6 per share
Issued 30,000 shares for cash at RM8 per share.
Issued 60,000 shares for cash at RM10 per
share.
Required:
State the journal entries for the above transaction, assuming that the ordinary shares
are non-par shares. Assuming no cost incurred for the issuance of shares.
(9 marks)
B. Once a company has successfully issued its capital, the company may at later stage
decide to make changes to share capital. Explain two (2) ways that capital may be
increased by a company.
(4 marks)
C. The shareholders’ equity section of a statement of financial position of Remi Berhad
at 31 December 2019 is shown below.
2019
(RM)
400,000
100,000
148,000
340,000
988,000
Share capital
General reserve
Foreign currency translation reserve
Retained earnings
2018
(RM)
320,000
80,000
120,000
320,000
840,000
Additional information
• Remi Berhad issued 25,000 shares at RM3.20 each on 26 August 2019 for cash.
• A transfer of RM20,000 was made from retained earnings to the general reserve.
• Comprehensive income for the year was RM288,000, including a foreign currency
translation gain of RM28,000 recognised in other comprehensive income.
• Dividends paid during 2019 comprised: final dividend for 2018, RM100,000,
interim dividend, RM120,000.
Required:
Illustrate Statement of changes in equity of Remi Berhad for the year ended 31 December
2019 in accordance with MFRS 101 Presentation of Financial Statements.
(12 marks)
[Total: 25 marks]
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SULIT
MAB1053/A192/A
QUESTION 3
A. State the cost component as specify in MFRS 112 Inventories.
(3 marks)
B. Wheely Berhad is a company that sold bicycles. It uses the perpetual inventory method
and allocates cost to inventory on a first-in, first-out basis. The company’s reporting
period ends on 31 December 2019, inventory on hand consisted of 350 bicycles at
RM82 each. During the month ended 31 December 2019, the following inventory
transactions took place (all purchase and sales transactions are on credit)
December 1
3
9
10
15
17
22
26
Sold 300 bicycles for RM122 each.
Five bicycles were returned by a customer. They had originally
cost RM82 each and were sold for RM124 each.
Purchased 55 bicycles at RM91 each.
Purchased 76 bicycles at RM96 each.
Sold 86 bicycles for RM133 each.
Returned one damaged bicycle to the supplier. This bicycle had
been purchased on 9 March.
Sold 50 bicycles for RM120 each.
Purchased 70 bicycles at RM97 each.
Required:
a. Illustrate schedules to compute the ending inventory at 31 December 2019.
(11 marks)
b. Estimate the gross profit on sales for the month of December 2019.
(9 marks)
c. State appropriate journal entries for transaction on 17 December 2019.
(2 marks)
[Total:25 marks]
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SULIT
MAB1053/A192/A
QUESTION 4
A. Define the meaning of ‘identifiable’ according to MFRS 138 Intangibles Assets.
(2 marks)
B. State key characteristics of an intangible assets.
(3 marks)
C. The followings are information concerning Vivo Berhad’s intangible assets.
2/1/2019
1/4/2019
1/6/2019
1/7/2019
1/7/2019
A trademark was purchased from Silo Berhad for RM36,000. Vivo
estimates that the useful life of the trademark will be 20 years
from the date of acquisition.
Patent amount RM84,000 was purchased (10-year life)
Legal fee of RM12,650 for successful defense of patent
purchased above.
Expenditures for successful litigation in defense of the trademark
totaling RM10,200 were paid.
Acquired franchise for RM48,000 with expiration date 30/6/2025
Required:
a)
Estimate the amortization expenses for each of the intangible assets above.
(10 marks)
b)
Illustrate journal entries to record all of the above.
(10 marks)
[Total: 25 marks]
END OF QUESTION
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