QUESTION 1Gold BHD is a local manufacturing company specialising in computer and technical services.The company was listed in Bursa Malaysia since 2010 with 45,000,000 units of ordinary shares,500,000 units of 4% redeemable preference shares and 12,000,000 units of 5% non-cumulativepreference shares as at 30 June 2021. The trial balance of the company based on theunadjusted balances is shown below:Silver Tech BhdTrial Balance as at 30 June 2021DebitCreditRM'000RM'000Revenue35,500Cost of sales6,500Distribution costs950Administrative costs1,300Investment income120Freehold land (revaluation)Building (revaluation)55,00060,000Machineries (cost)78,900Motor vehicles (cost)63,700Intangible asset250Investment properties500Investment432Accumulated depreciation as at 1 July 2020:Building10,000Machineries3,500Motor vehicles2,540Ordinary shares45,0004% redeemable preference shares5005% non-cumulative preference shares12,000Retained profit191,142.Revaluation reserves2% convertible debentures1,28011,500Defined benefits asset as at 1 July 2020Таx paidInterim dividend - 5% non-cumulative preferenceshares650312.3250Inventories983Bank44,135Account receivables633.2Deferred tax369.5 Accruals321Account payables722.5314,495.314,495.5Additional information:1. Gold Bhd has a funded defined benefits plan to its employees. The following are thebalances as at 30 June 2020 and 30 June 2021.Fair value of plan asset (RM)Definedbenefitsobligation(RM)30 June 20202,950,0003,575,0002,300,00030 June 20212,980,000The current services cost for financial year end 30 June 2021 is RM699,000. Thecompany incurred a past service cost of RM1,320,000. The annual discount rate used bythe company is 12% whilst the expected rate of return is 15% per annum. During theyear, a total of RM1,900,000 was paid to the benefits plan and RM1,500,000 is paid toretired employees. The present value of future economic benefits is RM545,000.2. The 2% convertible debentures were issued on 30 April 2020 and can be converted in50 ordinary shares for every RM200 debentures. On 1 June 2021, 20% of theconvertible debentures were converted into ordinary shares. No adjustment has beenmade for the converted debentures and the debenture interest is still payable as at 30June 2021.QUESTION: For above additional information, discuss the full accounting treatment foreach transactions and the journal entry. Show all workings clearly

In terms of Preference shares, then in simple words or language they are preferred stock. As we can…

Gold BHD is a local manufacturing company specialising in computer and technical services The company was listed in Bursa Malaysia since 2010 with 45,000,000 units of ordinary shares 500,000 units of 4% redeemable preference shares and 12,000,000 units of 5% non-cumulative preference shares as at 30 June 2021. The trial balance of the company based on the unadjusted balances is shown below: Silver Tech Bhd Trial Balance as at 30 June 2021 Debit Credit RM'000 RM'000 Revenue Cost of sales 35,500 6,500 Distribution costs 950 Administrative costs 1,300 Investment income 120 Freehold land (revaluation) 55,000

Gold BHD is a local manufacturing company specialising in computer and technical services The company was listed in Bursa Malaysia since 2010 with 45,000,000 units of ordinary shares 500,000 units of 4% redeemable preference shares and 12,000,000 units of 5% non-cumulative preference shares as at 30 June 2021. The trial balance of the company based on the unadjusted balances is shown below: Silver Tech Bhd Trial Balance as at 30 June 2021 Debit Credit RM'000 RM'000 Revenue Cost of sales 35,500 6,500 Distribution costs 950 Administrative costs 1,300 Investment income 120 Freehold land (revaluation) 55,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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