Page 81 - Ebook Financial Accounting 3
P. 81
EXERCISE
QUESTION 4.1
Gagah Berani Bhd was registered with an authorized share capital of 2,000,000 ordinary shares
st
of RM1 each. The following trial balance was extracted on 31 December 2020:
DEBIT (RM) CREDIT (RM)
Ordinary shares, issued & fully paid 1,400,000
Retained earnings at 1 Jan 2020 250,060
Interim Dividend –Ordinary Shares 43,200
Properties at cost 1,600,000
Motor vehicles at cost 180,000
Plant & machinery at cost 120,000
Accumulated depreciation
Plant & machinery 24,000
Motor vehicles 36,000
Research and development Cost 45,000
Bank 53,460
Stock as at 31 Dec 2020 64,000
Debtors 36,000
Creditors 91,220
Gross profit in trading 600,600
Rent 50,000
Water & electricity 18,900
Salaries 172,000
General expenses 19,320
2,401,880 2,401,880
You are given the following information:
a) Taxation charge on the current year’s profit is estimated to be RM60, 000.
b) Provisions are to be made for:
• Depreciation on plant and machinery of 10% on cost
• Depreciation on motor vehicles of 20% on cost
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