Page 75 - Ebook Financial Accounting 3
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Example 4.1
Megah Bhd was registered with an authorised share capital of 2,000,000 ordinary share
@RM1.00 each and 500,000 8%preference share @RM1.00 each. Given below is the list of
balances of Megah Bhd as at 31 December 2020:
RM RM
Land 282,290
Building 246,000
Machine (cost) 60,000
Vehicle (cost) 30,000
Investment 24,000
Accumulated depreciation – Machine 24,000
Accumulated depreciation – Vehicle 1,000
Inventory 18,000
Trade Receivables and Trade Payables 8,000 5,000
Bank 10,000
Cash 2,000
Gross profit 85,000
Discount Receivable 500
Directors’ Remuneration 1,200
Rent 8,800
Utility 560
Debenture Interest 4,500
General Expenses 750
Insurance 2,400
10% Debenture 45,000
Retained Profits 15 000
400,000 ordinary shares @ RM1.00 each 400,000
100,000 8% preference share @ RM 1.00 each 100,000
General Reserve 23,000
Additional Information:
1. The insurance coverage is for the period of 1st March 2020 until 28 February 2021.
2. Rent for December 2020, RM800 will only be paid on 5 January 2021.
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