Question

This is BBM206/05 Business Accounting II subject

Question 4 The following balances were extracted from the books of Sawadee Sdn Bhd for the year ended 31 December 2019. Retained profit 31 December 2018 Inventory 1 January 2019 Purchases Sales Return inwards Return outwards Carriage inwards Discount received for purchases Directors' remuneration Distribution expenses Administrative expenses Rental income (Commercial shop lot) Debenture interest Interest received on fixed deposit Commission receivable Interim ordinary shares dividends Motor vehicles at cost - Distribution Administration Plant and machinery at cost Wages - Warehouse staff Wages and salaries Maintenance of motor vehicles - Distribution Advertising and promotion Discount allowed on sales RM'000 12,000 50,300 85,800 200,000 2,300 1,600 1,200 860 5,400 2,580 3,760 12,000 1,620 1,432 2,600 4,200 19,000 12,000 56,000 1,740 3,680 2,040 3,220 1,820 Additional information: Inventory at 31 December 2019 was RM13,500. Wages and Salary were to be apportioned as: Distribution 74. Administration % Depreciation policy of Plus is: Motor Vehicles at rate of 20% on cost per annum Plant and Machinery (which was used for production) at rate of 10% on cost per annum iv. Accrued Auditors' Fees amounted to RM3,300. V. Corporate tax was estimated to be RM8,200. vi. RM6,000 was to be transferred to General Reserve. vii. Proposed Ordinary Share Dividends amounted to RM10,800. Required: Prepare the Statement of Comprehensive Income for the year ended 31 December 2019 by adopting the function of expense or "cost of sales" method in accordance with MERS 101 Presentation of Financial Statements: (Show workings where appropriate) [30 marks]

Need 1 full-page answer, please

Answer 1

Staement of Icoprehensive income statement is attched along with notes

1. Revenue Sales Sawadee Sdn Bhd Statement of Comprehensive Income For the year ending 31 December, 2019. Revenue Operating Revenue 1 1,95,880 Other Income 2 16,032 5.Selling and distribution expel Amount Advertising 3220 Distribution expenses 2580 Total 5800 Amount 200000 -2300 -1820 1,95,880 Sales return Discount Total 3 4 5 6 2.Other Income Rental Income Interest on Fixed Deposit Commission receivable Total Amount 12,000 1,432 2,600 16,032 6.Other Expenses Administartion Expenses Audit fees Maintenace Expenses Remuneration Total Amount 3,760 3,300 2,040 5,400 14,500 Operating Expenses Cost of Goods Sold Salaries and Wages Selling and Distribution expenses Other Expenses EBITDA Depreciation Finance Cost(Debenture) Net operating profit /(Loss) Tax expense Profit after Tax -1,21,340 -5,420 -5,800 -14,500 64,852 -11,800 -1,620 51,432 -8,200 43,232 3. Cost of Goods Sold Opening Stock Purchases Closng Stock Return outwards Discount Carriage Inwards Total Amount 50,300 85,800 - 13,500 -1,600 -860 1,200 1,21,340 7.Depreciation Motor vehicle - Administration Motor vehicle - Distribution Plant & Machinery Total Amount 2,400 3,800 5,600 11,800 Distributions General Reserve Intermin Dividend Proposed dividends -6,000 -4,200 -10,800 Amount 1,740 920 2,760 5,420 Profit after distributions 4.Salaries and Wages Wages Salaries and Wages: Distribution Salaries and Wages: Administration Total Budget Factor 22,232 beet1 A B ABC Costina Cash Process Costing CG