Question

a) Based on the information below, prepared a financial position of company ABC Sdn Bhd. as at 31.12.2019.

        

Items	RM
Inventories	600,000
Retained earnings	270,000
Long-term loan	60,000
Tax payables	180,000
Trade receivables	780,000
Share capital	240,000
Overdraft	400,000
Furniture & Fittings	270,000
Trade payables	420,000
Other payables	80,000

  

                                                                                                                                         

b) You are required to calculate and comments on the following:

   (i) Non-current asset

(ii) Current asset   

(iii) Current liabilities

   (iv) Non-current liabilities

(v) Equity

(vi) Working capital

Answer 1

(A)

ABC Sdn Bhd.
Statement of Financial position as at 31.12.2019
Assets	Amount RM	Amount RM
(I) Non Current Assets
Furniture & Fittings	270,000
Total Non current assets		270,000
(II)Current Assets
Inventories	600,000
Trade receivables	780,000
Total Current Assets		1,380,000
Total Assets		1,650,000
Liabilities and Equity
(I) Non Current Liabilities
Long-term loan	60,000
Total Non current Liability		60,000
(II)Current Liabilities
Overdraft	400,000
Trade payables	420,000
Other payables	80,000
Tax payables	180,000
Total Current Liabilities		1,080,000
(III)Equity
Share capital	240,000
Retained earnings	270,000
Total Equity		510,000
Total Liability and Equity		1,650,000

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(b)

(i)Non current assets = RM 270,000 [Furniture & Fittings]

(ii)Current asset=1,380,000 [Inventory +Trade receivable]

(iii)Current liabilities-

Current Liabilities
Overdraft	400,000
Trade payables	420,000
Other payables	80,000
Tax payables	180,000
Total Current Liabilities	RM 1,080,000

(iv)Non-current liabilities=RM 60,000[Long-term loan]

(V)Equity =RM 510,000

Share capital	240,000
Retained earnings	270,000
Total Equity	510,000

(vi) working capital = current assets-Current liabilities = 1,380,000-1,080,000= RM 300,000