Question
In: Accounting
Silver Berhad is in the process of finalising the financial statements for the year ended 31...
Silver Berhad is in the process of finalising the financial statements for the year ended 31 December 2018 and came across the following issues. Its profit after tax before the following adjustments is RM 1.65 million. The authorisation date for the financial statements is 31 March 2019.
(i) The tax rate applicable to the company has been changed from 26% to 25% on 15 January 2019. This new rate is announced to be applied starting for financial year 2019.
(ii) Major fire broke out in one of its factories on 15 February 2019 and destroyed the inventory valuing RM50,000, the sale value of which is now nil.
(iii) A debtor that owes the company RM30,000 was declared
bankrupt by the Insolvency Department on 6 January 2019. (iv) The
fair value of investment property held by the company at the
reporting date was RM1.2 million. However, a major flood on 5
January 2019 has been affecting the value of this investment
property. On 28 March 2019, an independent property valuer
estimated that the fair value now has decreased to RM900,000.
Required:
(i) For each case, discuss the accounting treatment.
(ii) Determine the amount profit of Silver Berhad for the year
ended 31 December 2018.
Solutions
Expert Solution
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ekkarill92 answered 2 years agoRelated Solutions
Silver Berhad is in the process of finalising the financial statements for the year ended 31...
Silver Berhad is in the process of finalising the financial
statements for the year ended 31 December 2018 and came across the
following issues. Its profit after tax before the following
adjustments is RM 1.65 million. The authorisation date for the
financial statements is 31 March 2019.
(i)The tax rate applicable to the company has been changed from
26% to 25% on 15 January 2019. This new rate is announced to be
applied starting for financial year 2019.
(ii)Major fire...
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occurred as follows:
(a) Inventory held by Lion Pte Ltd was recorded at its cost of
$1,104,000 at 31 December 20X1 in the statement of financial
position. The whole inventory was damaged by flood water in
December 20X1....
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Q3. Jamil Berhad prepares financial statements for the year ended 31 December 2018. The financial statements...
Q3. Jamil Berhad prepares financial statements for the year
ended 31 December 2018. The financial statements are expected to be
authorised for issue on 20 April 2019. The following events have
taken place:
(i) A health and safety investigation of an incident which
occurred in 2018 was concluded in February 2019, resulting in RM2.5
million fine for Jamil Berhad. A provision for RM0.5 million had
been recognised in Jamil Berhad’s financial statements for the year
ended 31 December 2018.
(ii)...
The financial statements of Aimi Enterprise for the year ended 31 December 2018 are as follows:...
The financial statements of Aimi Enterprise for the year ended
31 December 2018 are as follows:
Statement of Profit or Loss and Other Comprehensive
Income for the year ended 31 December 2018
RM
RM
Sales
(-) Cost of sales:
Opening inventory
(+) Purchases
(-) Closing inventory
Gross Profit
(+) Revenues:
Discount received
Commission received
(-) Expenses:
Salaries and wages
Repair and maintenance
Net Profit
25,000
200,000
(15,000)
10,000
8,300
41,300
100,000
450,000
(210,000)...
The Statements of Financial Position of Dream Limited for the year ended 31 December 2015 are...
The Statements of Financial Position
of Dream Limited for the year ended 31 December 2015 are provided
below:
Dream Limited
Statement of Financial Position as at 31
December:
2015
2014
$’000
$’000
Assets:
Land
350
200
PPE
950
510
Accumulated depreciation
(380)
(240)
570
270
Cash at bank
20
-
Inventories
110
200
Accounts receivable
200
180
Total
1,250
850
Liabilities:
Accounts payable
160
210
Bank overdraft
0
20
Salary payable
40
20
Tax payable
80
60
Dividends Payable
50...
The draft financial statements of Socket Limited for the year ended 31 December 2017 are as...
The draft financial statements of Socket Limited for the year
ended 31 December 2017 are as below:
Statement of profit or loss and other comprehensive income for the
year ended 31 December 2017
?
?
?
?
$m
Revenue
?
?
?
?
168,300
Cost of sales
?
?
?
?
-115,850
Gross profits
?
?
?
?
52,450
Administration expense
?
?
?
?
-2,750
Distribution expense
?
?
?
?
-1,200
Profits before tax
?
?
?
?...
DEKO Berhad is in the process to finalized its financial statements. The following is the list...
DEKO Berhad is in the process to finalized its financial
statements. The following is the list of assets and liabilities as
at 31 December 2019
Accounts
Carrying amounts
(RM)
Property
5,000,000
Equipment
2,000,000
Leasehold land
3,000,000
Prepaid insurance
60,000
Trade receivables
220,000
Accrued dividend
10,000
Unearned rental income
46,000
Trade payable
35,000
Provision for employee benefits
120,000
Additional information:
The balance amount of deductible for tax purposes in
the future periods relating to the property is RM4,850,000 and the
equipment...
(C) ZAPRYL BHD is in the process to finalise its financial statements for the year ended...
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current records, the profit before tax is RM3,200,000 (2018:
RM3,000,000). However, the followings have been discovered:
(a) Sales invoices dated 24 December 2018 amounted to RM8,000
and 27 December 2019 amounted to RM10,000 were both fake.
(b) An investment property was purchased in January 2015 at a
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The draft financial statements of Pedro, a limited liability company, for the year ended 31 December...
The draft financial statements of Pedro, a limited liability
company, for the year ended 31 December 2019 are currently under
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dismissal. The company’s legal team have stated that the
ex-employee is likely to succeed. The following estimates have been
given by the lawyers relating to the case:
a) Legal
costs (to be incurred whether the claim is successful or not)
$10,000
...
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