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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:TQ2).
Maisara Bhd (MB) purchased Jujur Sdn Bhd (JSB) on 1 January 2009. On the date of purchased the
Retained Profits and General Reserve of ISB were as follows;
Jujur Sdn Bhd
(RM)
Retained Profits
General Reserve
100,000
100,000
The
(RM)
(RM)
Maisara Bhd
Jujur Sdn Bhd
Share capital of RM1 each
300,000
100,000
Revaluation Reserve
50,000
100,000
Share premium
50,000
General reserve
110,000
120,000
Retained profits
200,000
100,000
Long-term loans
80,000
50,000
790,000
470,000
Property, plant & equipment, at NBV
540,000
370,000
Investments, at cost
80,000 shares in JSB, at cost
300,000
Current assets
150,000
200,000
Less:
Current liabilities
(200,000)
(100,000)
790,000
470,000
(RM)
(RM)
Maisara Bhd
Jujur Sdn Bhd
Revenue
1,000,000
500,000
Operating expenses
(850,000)
(400,000)
Profit from operations
150,000
100,000
Finance costs
(10,000)
(5,000)
Dividends from subsidiaries
80,000
Profit before tax
220,000
95,000
Taxation
(30,000)
(15,000)
Profit after tax
190,000
80,000
Retained profits brought forward
60,000
120,000
Available for appropriation
250,000
200,000
Dividends paid
(50,000)
(100,000)
Retained profits carried forward
200,000
100,000
Statement of Comprehensive Income & Retained Profits and Financial Positions of the two
companies for the year ended 2011 were as follows;
Additional information:
a) Included in the property, plant & equipment of JSB were freehold land at costs of RM80,000. At
the date of acquisition of these two companies, the fair value of JSB's land was RM130,000. No
adjustments have been made in the accounts of these two companies for the fair values and there
were no subsequent movements in the freehold land account.
b) On 31 December 2011, MB held stocks purchased from JSB amounting to RM100,000. The
intercompany sales in the current year amounted to RM200,000. These sales had a profit margin of
10%.
c) On 1 January 2011, MB sold Plant & Equipment (PE) to JSB at RM200,000. The PE's costs to JSB
was RM150,000. JSB classified the assets purchased as another PE. Depreciation charges forthe
group are at 10% per annum.
d)
e)
No impairment of goodwill was recorded for the current year.
Assume an income tax rate of 30%. Ignore tax-effect on intercompany transactions
You are required:
1. Prepare a worksheet that consolidates both MB and JSB accounts as at 31 December 2011.
COMPREHENSICE INCOME AND ETAINED PROFITS FOR THE YEAR ENDED 31
DECEMBER2011
-
Statement of Financial Positions as at 31 December 2020
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