Question

Use this facts to make balance sheet for money maker company

Money Maker Company (MMC) has a registered capital of 50,000,000 Baht. The company maintains a savings account at Siam Commercial Bank in the amount of 10,000,000 Baht earning interest at 2.5% per year. This account was active for 12 months in 2017. As a benefit for its maintaining good account, MMC was given 5,000,000 Baht over draft protection for its check writing privilege. MMC pays its short-term debts 50,000 Baht per month throughout 2017. There are 5 directors in the company; each director can borrow 5,000,000 Baht from the company. Three directors took advantage of this privilege in 2017. Three directors borrow the money on 6 months due in June 2017, but by December 2017, these directors still did not pay the loans. The loans to these 3 directors came from the company’s reserves account. The total reserved was 10,000,000 baht. Thus, no collection attempt was made on the three directors who were in arrear on the loan repayment.
MMC derives its main income from selling manufactured goods. It produces flat screen TV for export. Its main office is in Bangkok and pays its income tax on its revenue as regular income without any special treatment. In 2017, it took advantage of the government's tax incentive policy to create jobs in industry parks by establishing one production plant in Chonburi Province. As the result MMC receives a certain percentage tax exemption. The following are list of expenses related to its Chonburi production plant. The company’s consolidated income statement shows that MMC earned 350,000,000 Baht from sales. The Chonburi branch accounts for 80% of the company’s total sales revenue. In 2017, the company adopted unique business model by dividing its operations into sales/administration and manufacturing. All manufacturing activities are done in Chonburi plant. All sales and administration are done by the head office in Bangkok office.
The company has US dollar account where it has $1,000,000 in January 2017 when the exchange rate was 30.50 Baht per dollar. By December 2017, the exchange rate was 33.50 Baht per dollar. The privilege of maintaining this US dollar account costs 1,000 Baht per month.
In addition to deriving income from sales, the company also has other sources of income. It earns 2% on its reserved that had not been lent to its directors. In 2017, the company speculated on bitcoin by making 1,000,000 Baht worth of purchase and sold it for 2,000,000 Baht. In the middle of 2017, the company sold one of its parking lot and made 3,000,000 Baht in profit. This profit from Bitcoin investment was re-invested in stock where the company received 5 Baht per share for 10,000 Shares.
The company pays 10,000,000 Baht per year for the right to use the copyright design of the product that its produces to sell. The production processes uses diesel fuel as the source of energy; the company spent 50,000,000 Baht for diesel fuel. The company subcontracted part of its production to subcontractor in order to save coast; the subcontracting bill for 2017 was 12,000,000 Baht. The company follows lean production method, and maintains zero inventory at the end of each accounting period. In 2017, the company spent 80,000, 000 Baht on raw materials and had 5,000,000 of work in process at the end of 2017 accounting period.

Answer 1

Money Maker company
Balance sheet as at 31st December,2018
Liabilities	Amount ( Baht)	Liabilities	Amount ( Baht)
Capital	50,000,000.00	Bank and cash	298,573,000
Overdraft	5,000,000.00	Loan to Directors	15,000,000
Net profit	263,073,000.00	Investment	1,000,000
Translation gain loss	1,500,000.00	Inventory	5,000,000
	319,573,000.00		319,873,000.00

Working Notes:

Particulars	Bhat	Accounts Involved
Total Sales	437500000	cash	Net Profit
Right to use copyright	-10,000,000	cash	Net Profit
Diesel fuel	-50000000	cash	Net Profit
Contractor	-12000000	cash	Net Profit
Raw Material	-80,000,000	cash	Net Profit
Closing WIP	5000000	Inventory	Net Profit
bank maintainence	-12000	cash	Net Profit
Interest income	300,000	cash	Net Profit
Profit from sale of parking lot	3,000,000	cash	Net Profit
Profit from bitcoin trading	1,000,000	Investment	Net Profit
Dividend income	50,000	cash	Net Profit
Interest income on bank deposit	235000	cash	Net Profit
Selling Expenses	(32,000,000)	cash for 30500000	Net Profit

Interest Income on bank deposits = (10,000,000-600,000)*2.5%= 235000

Interest on reserved deposit = 15000000*2% = 300,000

Translation gain loss = $ 1000,000*( 32-30.5) = 1500000