Accounting

kiwimin | 08:10 Wed 20th Jul 2016 | Business

1 Answers

HBB Bhd is a nationwide retailer of beds that are sold to the public, hotels, etc.
The following is its trial balance at 31 December 20X2:

Debit Credit
RM’000 RM’000
Equity shares of RM 0.50 each 20,000
8% preference shares of RM 1 each 10,000
10% debentures 20Y2 5,000
Share premium account 8,000
Freehold premises at cost 31,000
Delivery vehicles – cost 18,500
- accumulated depreciation 6,500
Goodwill 3,500
Listed investments 1,500
Retained earnings 2,500
Debenture interest 250
Interim preference dividend 400
Inventories 4,100
Trade receivables / payables 5,200 3,800
Cash and cash equivalents 3,030
Purchases / sales revenue 19,800 29,700
Investment income 150
Provision for bad debts 220
Distribution costs 860
Administrative expenses 730
Suspense account 3,000

Additional information
1. The equity and preference shares are both fully paid.
2. The balance on the suspense account shown in the trial balance relates to the issue of 4 million equity shares of RM 0.50 each at a price of RM 0.75 fully paid on the 31 October 20X2. This has already been debited in the cash book.
3. The directors have decided to revalue the freehold premises on 31 December 20X2 at a value of RM 35,000,000.
4. The directors paid an equity dividend for the year of 4 pence per share. This transaction had not been reflected in the above trial balance.
5. The company still have to pay the outstanding dividend on the preference shares.
6. The delivery vehicles are depreciated at 20% p.a. on cost. The company has a policy of not depreciating freehold premises.
7. Goodwill suffered no impairment in value during the year.
8. Inventory at 31 December 20X2 was RM 3,900,000.
9. The provision for bad debts should be maintained at 5% of the trade receivables.
10. At the 31 December 20X2 there were distribution costs accrued of RM 50,000 and administrative expenses prepaid of RM 40,000.
11. The listed investments are held on a long-term basis.
12. Ignore taxation.

You are required to prepare an income statement for the year ended 31 December 20X2 and a statement of financial position as at that date.

I have done it just I do not have answer to check. Anyone have answer please post it. thank you