BKAR1013 FINANCIAL ACCOUNTING AND REPORTING I (A221)

MINI CASE 5:

CASH

DUE DATE: 24 December 2022

Guidelines for submission:

1) Please answer all questions.

2) Please write your name, matric number, group on the header and page number on the
bottom of your answer document.

3) The mini case is an individual task, however discussion is allowed, but copying other
student’s answer is forbidden.

4) Your answer should be handwritten and subsequently scanned with a scanner or

mobile scanner apps in a combined PDF file. The scanned document must be clear,
easily readable and complete. Photo is not allowed.

5) Submit your scanned answer via Online Learning portal → within

the allotted time and period, before 12.00 mid night, 24 December 2022. Only one
submission will be accepted.

6)

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QUESTION 1:

Each of the following items must be considered in preparing statement of cash flows (indirect
method) for Lela Barjala Bhd for the year ended 31 December 2021. Explain where each item is
to be shown in the statement of cash flows.

a. A building that had a cost RM245,000 and a useful life of 10 years was purchased 6
years ago. The building depreciates using straight-line method with no residual value.
This building was sold at the beginning of the year for RM150,000.

b. During the year, RM230,000 ordinary shares were issued.

c. The company sustained a loss before tax for the year of RM115,000. Depreciation
amounted to RM33,000 and a gain of RM39,000 was realized on the sale of equipment
for RM68,000.

d. Patent amortization for the year was RM15,000.

e. During the year, treasury shares costing RM55,000 were purchased.

QUESTION 2:

Bulan Berkabus Bhd reported RM345,000 of profit before tax for 2021. Mr Halim, the
accountant, is preparing the statement of cash flows noted several items occurring during the
year that might affect affect cash flows from operating activities. These items are as follow:

a. Bulan Berkabus Bhd bought shares of Ninja Speedo Bhd for RM69,000.
b. Bulan Berkabus Bhd sold 100 shares of Henra Bhd at RM120 per share. The acquisition
cost of these shares was RM100 per share. This investment was shown on Bulan
Berkabus Bhd Statement of Financial Position for the year ended 31 December 2021 as a
non-trading equity investment.
c. Bulan Berkabus Bhd issued 2000 shares at a price of RM10 per share for a patent.
d. Depreciation expense is RM56,000.
e. Bulan Berkabus Bhd paid a total of RM15,000 of cash dividends to all investees in 2021.

REQUIRED:

Prepare Statement of Cash flow for Bulan Berkabus Bhd that shows the net cash flow from
operating activities using the indirect method.

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QUESTION 3:

A. Teguh Stand Bhd was established in the last ten years. The company resides in Alor
Setar and has become as one of the preferred textile suppliers. The following are
information on the non-current assets, working capital and other financial information of
the company for the year ended 31 March 2022:

2022 2021
RM RM
NON-CURRENT ASSETS
Investments in equity 1,200,000 2,211,500
Land 1,245,000 3,997,000
Building 12,375,000 12,375,000
Less: Accumulated depreciation-building (6,806,250) (6,187,500)
Equipment 9,566,100 11,166,700
Less: Accumulated depreciation- (6,536,210) (6,700,020)
equipment
Goodwill (net) 2,009,000 2,643,250
13,052,640 19,505,930
CURRENT ASSETS
Inventory 5,184,000 3,877,000
Accounts receivable 3,489,750 5,217,000
Cash 8,823,500 5,688,800
17,497,250 14,782,800
CURRENT LIABILITIES
Accounts payable 2,155,000 1,692,000

WORKING CAPITAL 15,342,250 13,090,800

Additional information:

1. Profit before tax for the year 2022 was RM10,485,800.

2. Interest expense of RM978,000 and income tax expense of RM2,097,160 were paid
in cash.
3. Buildings and equipment are depreciated at 5% and 10%, respectively.
4. Among items included in the determination of the profit were as follows:

RM
Gain on sale of equipment 90,500
Gain on sale of land 1,326,500
Loss on sale of equity investment 838,950

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 REQUIRED:

Prepare a partial Statement of Cash Flows for Teguh Stand Bhd for the year ended 31
March 2022 using the indirect method in accordance with MFRS 107 Statement of
Cash Flows (showing only the Cash Flows from Operating Activities).
(10 Marks)
B. Harum Manis Sdn Bhd (HMSB) has a difference in balance as per cash book and bank
statement as at 30 June 2022. The balances as per bank statement and cash book are
RM17,500 and RM14,200 respectively. The following are details related to the cash and
bank transactions:

1. Dividends received amounted to RM650 was directly transferred to the bank and not
recorded in the cash book.
2. Checks issued to suppliers total RM4,000 issued on 27 June 2022 were not presented
to the bank.
3. A total of RM300 for insurance payment was directly paid by the bank and not yet
captured in the cash book.
4. A check received from customers amounted to RM1,500 was deposited on 29 June
2022 but did not appear in the bank statement.
5. A check issued to supplier amounted to RM1,000 were recorded twice in the cash
book.
6. The bank wrongly deducted RM500 from HMSB account for check issued by other
customer.
7. Bank charges of RM50 were debited and only appeared in the bank statement.

REQUIRED:

Prepare a bank reconciliation statement for Harum Manis Sdn Bhd for the month of June
2022.

QUESTION 4:

A. SintokTech Bhd develops and markets semiconductor-related products. The comparative

Statement of Financial Position for SintokTech Bhd as at 31 December 2021 were as
follows: 
 
SintokTech Bhd 
Statement of Financial Position 
As at 31 December 2021 
  2021  2020 
  RM  RM 
CURRENT ASSETS     
Inventory  8,460,000  6,345,000 
Accounts receivable  6,521,250  3,877,500 
Cash  37,717,500  9,165,000 
  52,698,750  19,387,500 

4
      
NON-CURRENT ASSETS     
Equity investment  -0-  2,115,000 
Building  8,250,000  20,973,750 
Less: Accumulated depreciation-building  -0-  (4,230,000) 
Equipment  31,725,000  14,100,000 
Less: Accumulated depreciation-equipment  (1,410,000)  (3,172,500) 
Intangible assets (net)  3,525,000  4,406,250 
  42,090,000  34,192,500 
TOTAL ASSETS  94,788,750  53,580,000 
     
EQUITY     
Share capital   38,565,000  23,265,000 
Retained earnings  14,628,750  4,230,000 
Total equity  53,193,750  27,495,000 
     
CURRENT LIABILITIES     
Accounts payable  3,525,000  2,115,000 
Dividends payable  -0-  3,525,000 
Short-term notes payable  2,115,000  2,820,000 
  5,640,000  8,460,000 
     
NON-CURRENT LIABILITY     
Long-term notes payable  35,955,000  17,625,000 
     
TOTAL LIABILITIES  41,595,000  26,085,000 
TOTAL EQUITY AND LIABILITIES  94,788,750  53,580,000 

Additional information: 
 
1. Equity investments were sold at RM1,198,500 above their cost. 
2. Dividends paid during the year were RM3,525,000. 
3. SintokTech Bhd owned a building at the beginning of the financial year. On 1
January 2021, the building was sold for RM22,560,000. A new building was
acquired on 30 December 2021 by issuing 3.3 million shares at RM2.50 per
share.  
4. An equipment was sold for RM1,762,500. The equipment had a cost of
RM7,755,000 and was 40% depreciated at the time of disposal. 
5. No disposal or new purchase of intangible assets during the year 2021. 
6. A long-term note for RM25,380,000 was issued for the acquisition of new
equipment. 
7. RM7,050,000 of the long-term note payable were paid by issuing ordinary
shares. 
8. Interest expense of RM1,410,000 and income tax expense of RM4,582,500 were

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 paid in cash. 
9. Profit before tax for the year 2021 was RM14,981,250. Included in the
determination of the profit were as follows: 
     RM 
Depreciation expenses 1,339,500     
Loss on sale of equipment 2,890,500 
Gain on sale of building 5,816,250 
Gain on sale of equity investment 1,198,500 
 
 
REQUIRED: 
 
Prepare the Statement of Cash Flows for SintokTech Bhd for the year ended 31 December
2021 using the indirect method in accordance with MFRS 107 Statement of Cash Flows.