Question:
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Premium One Bhd, a trader of stationery, was incorporated in Malaysia with an authorized capital of RM200,0
00,000 consisting of 160,000,000 ordinary shares of RM1.00 each and 20,000,000 5% preference shares of RM
2.00 each. The trial balance of Premium One Bhd for the year ended 31 December 2021 is as follows: Freehold
land at cost Building at cost Plant and equipment at cost Motor vehicles at cost Accumulated depreciation on
1 January 2021: Buildings Plant and equipment Motor vehicles Ordinary share capital 5% preference share cap
ital Share premium Retained earnings as at 1 January 2021 Reserves Rental income Interim dividend - Ordinar
y Shares - Preference Shares Loan from BMMB 10% debentures Account Receivables Account Payables Sales C
ost of sales Rental expenses Staff salaries Closing Inventories Cash at bank Debenture Interest Bank Loan Inte
rest Administrative expenses Distribution costs Tax paid Dividend income Development cost RM 10,000,000 1
8,200,000 11,700,000 1,800,000 870,000 150,000 1,300,000 11,432,000 400,000 2,580,000 960,000 312,000 80,0
00 108,000 920,000 648,000 360,000 1,340,000 63,340,000 RM 1,320,000 1,980,000 440,000 20,000,000 6,000,0
00 3,600,000 5,780,000 380,000 280,000 1,740,000 1,600,000 1,440,000 18,540,000 240,000 63,340,000 3
Expert Answer # 1:
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021
Revenue
Rental income 1,300,000
Dividend income 240,000
Total revenue 1,540,000
Expenses
Rental expenses 108,000
Staff salaries 920,000
Closing inventory 648,000
Bank loan interest 1,340,000
Total expenses 3,066,000
Profit before tax (1,526,000)
Income tax expense (305,200)
Profit for the year (1,831,200)
Other comprehensive income
Total comprehensive income for the year (1,831,200)
PREMIUM ONE BERHAD
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021
Assets
Non-current assets
Property, plant and equipment 18,200,000
Current assets
Inventories 1,700,000
Accounts receivable 400,000
Cash 360,000
Total assets 21,660,000
Equity and liabilities
Equity
Share capital 20,000,000
Retained earnings 870,000
Total equity 20,870,000
Non-current liabilities
Borrowings 1,600,000
Current liabilities
Accounts payable 2,580,000
Total liabilities and equity 21,660,000
