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Far 410 Tutorial Chapter 2 Part B Question

The document contains two questions about classifying financial statement items from two companies into elements outlined in the conceptual framework. For each company, the items and their amounts are given and must be classified and totaled under the appropriate elements of income, expense, asset, liability and equity.

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88 views

Far 410 Tutorial Chapter 2 Part B Question

The document contains two questions about classifying financial statement items from two companies into elements outlined in the conceptual framework. For each company, the items and their amounts are given and must be classified and totaled under the appropriate elements of income, expense, asset, liability and equity.

Uploaded by

2023289894
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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QUESTION 1

Al-Walid Bhd manufactures textiles which are sold in the whole Malaysian market. The
company assumes that it will continue to operate and grow in the foreseeable future. The
following information are extract balances of Al-Walid Bhd as at 31 December 2022.

Items RM
Ordinary share capital 1,500,000
Bank loan 200,000
Decrease in AFIOTR 14,000
Commission received 22,000
8% Redeemable preference shares 200,000
Share issue expense 18,000
Dividend payable 55,000
Goodwill 120,000
Property, plant and equipment 800,000
Depreciation 130,000

Required:

Classify the above items into elements as outlined in the Conceptual Framework and total up
each element. Present the answer as below.

No Elements Items Total (RM)

1 Income

2 Expense

3 Asset

4 Liability

5 Equity

(15 marks)
(Total: 15 marks)
QUESTION 2

Zazza Bhd manufactures all kinds of breads which are sold in the whole Malaysian market.
The company assumes that it will continue to operate and grow in the foreseeable future. The
following information are extract balances of Zazza Bhd as at 31 December 2021.

Items RM
Revenues 1,360,000
Bank overdraft 140,000
Loss on disposal of machinery 13,000
Investment income 72,000
General reserves 200,000
Auditors’ fees 48,000
Tax payable 70,000
Investment 120,000
10% Redeemable preference shares 600,000
Retained earnings 430,000

Required:

Classify the above items into elements as outlined in the Conceptual Framework and total up
each element. Present the answer as below.

No Elements Items Total (RM)

1 Asset

2 Liability

3 Equity

4 Income

5 Expense

(15 marks)
(Total: 15 marks)

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