Classification of Costs (working)

Distribution
RM
Salaries
Utilities
Printing & Stationery (RM12,000 - RM2,000)
Advertising expenses
Debenture interest
Accrued debenture interest
Directors' emoluments
Insurance expenses (RM11,000 - RM3,000)
Auditors' fees
Depreciation : Building (2% x RM1,000,000)
: Plant and Equipment (10% x RM400,000)
: Furniture and Fitting (20% x RM200,000)
Amortisation

140,000

TOTAL

140,000

Administration
RM
240,000
40,000
10,000

Finance
RM

10,000
10,000
160,000
8,000
24,000
20,000
40,000
40,000
30,000
612,000

20,000

Monika Bhd (external)

Statement of Profit or Loss for the Year Ended 31 December X4

Turnover

Less : Cost of sales

GROSS PROFIT
Distribution cost
Administration cost
Other cost : Land revaluation - Deficit
PROFIT FROM OPERATION
Finance cost
PROFIT BEFORE TAX
Taxation
PROFIT AFTER TAX

Earning per share (EPS)

RM
2,000,000

870,000

Monika Bhd (internal)

Statement of Profit or Loss for the Year Ended 31 December X4
Turnover

Less : Cost of sales

Opening inventory
Purchases
Closing inventory
GROSS PROFIT
Less : Operating expenses
Salaries
Utilities
Printing and stationery
Advertising expenses
Depreciation :
Building
Plant and equipment
Furniture and fitting
Directors' emolument
Debenture interest (RM10,000 + RM10,000)
Insurance expenses
Auditors' fees
Amortisation (Research and Development)
Land Revaluation - Deficit
Tax
NET PROFIT

RM
2,000,000

150,000
900,000
(180,000)

240,000
40,000
10,000
140,000
20,000
40,000
40,000
160,000
20,000
8,000
24,000
30,000
150,000
160,000

RM

2,000,000

(870,000)
1,130,000
(140,000)
(612,000)
(150,000)
228,000
(20,000)
208,000
(160,000)
48,000

2.83

RM
2,000,000

(870,000)
1,130,000

(1,082,000)
48,000

Monika Bhd (external)

Statement of Financial Position as at 31 December X4
RM
Non-current Assets
Property, Plant and Equipment (PPE)
Research and Development ( 730,000 - 30,000 )
Current Assets
Closing inventory
Accounts receivable
Bank balance
Prepaid insurance
Prepaid stationery
Financed by :
Share capital ( 1,200,000 + 200,000)
Reserves ( 650,000 + 400,000 + 400,000 )

2,130,000
700,000

180,000
110,000
136,000
3,000
2,000

1,400,000
1,450,000

Non-current Liabilities
Deferred tax liability
10% debentures

50,000
200,000

Current Liabilities
Accounts payable
Accrued debenture interest
Accrued Auditors' fees
Tax payable ( 180,000 - 85,000 )
Dividend payable

45,000
10,000
24,000
75,000
7,000

Monika Bhd (internal)

Statement of Financial Position as at 31 December X4
Accumulated Depreciation
RM
Non-current Assets
Land
Building
Plant and Equipment
Furniture and Fitting
Research and Development

60,000
160,000
100,000
30,000

Current Assets
Closing inventory
Accounts receivable
Bank
Prepaid insurance
Prepaid stationery

180,000
110,000
136,000
3,000
2,000

Financed by :
Owner's equity
Share capital ( 1,200,000 + 200,000)
Add :
Net profit
Reserves ( 650,000 + 400,000 + 352,000 )

1,400,000
48,000
1,402,000

Non-current Liabilities
Deferred tax liability
10% Debentures

50,000
200,000

Current Liabilties
Accounts payable
Accrued debenture interest
Tax payable (160,000 - 85,000)
Dividend payable
Accrued Auditors' fees

45,000
10,000
75,000
7,000
24,000

RM

2,830,000

431,000
3,261,000

2,850,000

250,000

161,000
3,261,000

Net Book Value (NBV)

RM
850,000
940,000
240,000
100,000
700,000

431,000
3,261,000

2,850,000

250,000

161,000

3,261,000

Statement of Changes in Equity for the Year Ended 31 December X4

Balance 1/ 1/ X4
Interim dividend
Final dividend (X3 - OS)
Final preference dividend
Profit after tax

Ordinary shares
RM
1,200,000

7% Preference shares
RM
200,000

Share Premium
RM
650,000

1,200,000

200,000

650,000

December X4
Asset Revaluation Reserve
RM
400,000

Retained Profit
RM
450,000
(49,000)
(42,000)
(7,000)
48,000

400,000

400,000

Notes :
1) Property, Plant and Equipment (PPE)

Cost/value
Balance 1/ 1 /X4
Valuation - Deficit

Land
RM
1,000,000
(150,000)

Building
RM
1,000,000

Balance 31/12/X4

850,000

1,000,000

40,000
20,000

0
850,000

60,000
940,000

Accumulated depreciation
Balance 1/ 1/ X4
Depreciation charge
Balance 31/12/X4
Carrying amount

2) Profit Before Tax

Profit before tax is arrived at after charging :
Directors' emoluments
Auditors' fees
Depreciation
Amortisation
Debentures interest

RM
160,000
24,000
100,000
30,000
20,000

And crediting :

3) Earning per share

The earning per share (EPS) is calculated by dividing the profits of the shareholders with the number of ordinary shares outstanding.
EPS = 48,000 - 14,000
1,200,000

x 100

= RM 2.83

4) Share Capital
Authorised capital :
1,500,000 ordinary shares of RM1
500,000 7% preference shares of RM1

Issued capital :
1,200,000 ordinary shares of RM1
200,000 7% preference shares of RM1

RM
1,500,000
500,000
2,000,000

1,200,000
200,000
1,400,000

Plant and Equipment

RM
400,000

Furniture and Fitting

RM
200,000

400,000

200,000

120,000
40,000

60,000
40,000

160,000
240,000

100,000
100,000

dinary shares outstanding.