The following list of account balances relates to Sentosa Berhad at 30 June 2011:
|
Debit |
Credit |
||
|
RM ‘000 |
RM ‘000 |
||
|
Ordinary share capital @ RM0.50 each |
100,000 |
||
|
Retained earnings 1 July 2010 |
113,000 |
||
|
Purchases |
180,000 |
||
|
Account receivables |
60,000 |
||
|
Inventories 1 July 2010 |
35,000 |
||
|
Cash and bank |
18,000 |
||
|
Account payables |
56,000 |
||
|
Sales |
350,000 |
||
|
Dividends paid |
7,000 |
||
|
Debenture interest |
2,000 |
||
|
General administration expenses |
30,000 |
||
|
General selling and distribution expenses |
22,000 |
||
|
Revaluation reserve |
24,000 |
||
|
Research costs |
8,000 |
||
|
10% Debentures |
50,000 |
||
|
Deferred taxation |
9,000 |
||
|
Land |
100,000 |
||
|
Building |
250,000 |
||
|
Plant and machinery |
60,000 |
||
|
Proceed from disposal of land |
25,000 |
||
|
Accumulated depreciation: |
|||
|
-Building |
25,000 |
||
|
-Plant and machinery |
20,000 |
||
|
772,000 |
772,000 |
- Inventories at 30 June 2011 were valued at cost of RM30 million.
- On 1 July 2010, a piece of land costing RM5 million but revalued in the books to RM11 million some years ago was sold for RM25 million.
- On 25 June 2011, the accountant discovered a computational error in the total credit purchases figure for the year ended 30 June 2011, which resulted in an understatement of RM3 million. This error had not been corrected in the books.
- Tax expense estimated for the year is RM36 million, this amount did not include an increase in deferred tax liability. The deferred tax liability was determined to be RM10million as at 30 June 2011
- Sentosa Berhad declared bonus issues of 1 share for every 20 shares held on 30 June 2011 by utilizing its retained earning amount. This transaction has not yet been reflected in the books.
- It is the company’s policy to provide for depreciation on its assets as follows:
Building: Straight line method at 2% p.a.
Plant & machinery: Reducing balance method at 20% p.a.
Depreciation expense is to be apportioned 60% to administration expenses and the balance to selling & distribution expenses.
Required:
Prepare for external use, the following financial statements of Sentosa Bhd:
(i) Statement of Comprehensive Income (classification of expenses by function) for the year ended 30 June 2011.
(ii) Statement of Changes in Equity for the year ended 30 June 2011.
(iii) Statement of Financial Position as at 30 June 2011.
