Page 105 - Ebook Financial Accounting 3

Additional Information:

1. During 2019, ordinary dividends of RM90 000 and preference dividends for 2019 were
paid.

2. On 1 July 2019, preference shares were redeemed out of profits and by the issue of
ordinary shares

3. On 1 July 2019, RM500 000 10% debentures were issued to acquire land. Interest for the

year has been paid.
4. Plant and machinery costing RM50 000 of carrying amount RM30 000 were sold at loss

RM4 000.
5. Investment costing RM50 000 was sold at a loss of RM2 000. Investment income

received amounted to RM15 000.

6. The tax expense for 2019 was RM168 000 including increase in deferred tax of RM40
000.

7. Difference in goodwill is due to amortization.

You are required to illustrate the cash flow statement of Haura Berhad for the year ended 31

December 2019 using the INDIRECT METHOD.

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