Chapter 2 - Format of FS

Question 1

SOPL

Answer 1

A BHD
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED …………

Revenue xxx
(-) Cost of Sales (xxx)
Gross Profit xxx

(+) Other Operating Income xxx
(-) Administrative Expenses (xxx)
(-) Selling & Distribution Cost (xxx)
Operating Profit xxx
(-) Finance Cost (xxx)
Investment income xxx
Profit Before Tax xxx
(-) Taxation Expense (xxx)
Profit for The Year xxx

Other comprehensive income:
Surplus on revaluation xx
Total comprehensive income xx

Earnings Per Share xx

Question 2

CLASSIFICATION OF COSTS

Answer 2

List of expenses:
Administrative Expenses
Selling & Distribution costs
Finance Cost

Items:
As per trial balance
Depreciation on NCA
Allowance for doubtful debts

Total

Question 3

SOCIE (TOP)

Answer 3

A BHD
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED………….

Share Capital:
Ordinary Shares
Preference Shares

Retained Profit

Reserves:
Asset Revaluation
General Reserves
Other Reserves

Question 4

SOCIE (ITEMS)

Answer 4

As Per Trial Balance (All)
New Issue (OS / PS)
Bonus Issue (OS / RP / OR)
Rights Issue (OS)
Profit for The Year (RP)

Surplus on Revaluation of Assets (ARR)
Transfer (RP /OR)
Dividends (RP)
Ending Balance (All)

Question 5

SOFP (ASSETS)

Answer 5

A BHD
STATEMENT OF FINANCIAL POSITION AS AT……….

Assets
Non-Current Assets
Property, Plant and Equipment xxx
Investment xxx
= xxx

Current Assets
Inventories xxx
Trade Receivables xxx
Tax Recoverable xxx
Accrued income xxx
Prepaid expenses xxx
Cash and Bank Balances xxx / xxx
Total Assets xxx

Financed by:
Equity and Liabilities
Equity
Share Capital xxx
Reserves xxx
Total Equity xxx

Question 6

SOFP (LIABILITIES)

Answer 6

Non-Current Liabilities
Debentures xxx
Long Term Borrowings xxx
= xxx

Current Liabilities
Trade Payables xxx
Short Term Borrowings xxx
Other Current Liabilities xxx
Tax Payable xxx
Accrued expense xxx
Unearned income xxx
Dividend Payable xxx / xxx
Total Equity and Liabilities xxx

Question 7

PROFIT BEFORE TAX

Answer 7

Profit Before Tax is arrived at after charging:

Directors Remuneration XXX
Auditors Fees XXX
Depreciation XXX
Interest on loan XXX
Debenture interest XXX

And after crediting:
Investment Income XXX

Question 8

EARNINGS PER SHARE

Answer 8

EPS = Profit for the year – Preference share dividend
EPS = Answer ÷ No. of Ordinary Shares
EPS = RM/unit

Question 9

NOTES TO PPE

Answer 9

COST/VALUATION
Opening Balance xxx
Deficit/ Surplus on Revaluation (LAND) xxx/(xxx)
Acquisition/Purchase xxx
Disposal (xxx)
Ending Balance (A) xxx

ACCUMULATED DEPRECIATION (exc. LAND)
Opening Balance xxx
Disposal (xxx)
Charge for the Year xxx (EXISTING + NEW ACQ)
Ending Balance (B) xxx

CARRYING VALUE(A)- (B) xxx

Question 10

CC, CL, SC

Answer 10

4. Capital Commitment
5. Contingent Liabilities
6. Share capital

Issued and Paid Up
Beginning Balance xxx
Bonus xxx
Right Issue xxx
Ending Balance xxxx