QUIZ - AA015 TOPIC 11 ACCOUNTING FOR EQUITY

QUIZ – AA015 TOPIC 11

ACCOUNTING FOR EQUITY

Question 1

 On 1 April 2020, Susan started a wedding planner service business named Susan’s Events Enterprise. She invested RM200,000 to purchase all necessary equipment including paying a 3-month deposit for display space and office. During the 1^st year, Susan’s Events Enterprise generated RM330,000 of net profit while her drawings throughout the year were RM120,000.

 

During 2021, Susan invested more cash in the business amounted RM150,000. At the end of the year the net profit was reported at RM350,000 and Susan’s drawings account shows a balance of RM110,000.

 

Required:

Prepare Statement of Changes in Equity for Susan’s Events Enterprise for the year ended 31 December 2021.    

                                                                                                             (4 marks)

Question 2

 

The following is a Comparative Statement of Financial Position for the years 2020 and 2021.

 

MAISON COMPANY

Comparative Statement of Financial Position

December 31,

—————————————————————————————————————

Assets                                                                                     2021(RM)         2020(RM)

                                                                                                (‘000)                   (‘000)

 Cash                                                                                       30,000                  45,000

Short-term investments                                                          10,000                   25,000

Accounts Receivable (net)                                                      60,000                  40,000

Inventory                                                                                 50,000                  50,000

Property, Plant, and Equipment (net)                                    200,000                160,000

Total assets                                                                            350,000                320,000

 

Liabilities and Shareholders' Equity

Accounts Payable                                                                   10,000                  30,000

Short-term Notes Payable                                                       40,000                  35,000

Bonds Payable                                                                         20,000                 20,000

Common Shares                                                                    140,000               120,000

Preference Shares                                                                    80,000                 80,000

Retained Earnings                                                                   60,000                  35,000

Total Liabilities and Shareholders' Equity                            350,000                320,000

 

Net income for the year 2021 was RM27,000,000.

 

Required:

Prepare Statement of Changes in Equity for the year ended 31 December 2021.         

(9 marks)

 

  

As Salam and Hi everyone... My name is Puan Asmazatul Yusfiziati Binti Mohd Yusof CA(M) or you can call me Madam Fizi. I'm an Accounting lecturer at Negeri Sembilan Matriculation College (KMNS), Kementerian Pendidikan Malaysia. This blog (www.madamfizi.com) was created to share learning materials on the subject of Accounting for Matriculation, Form 6, Foundation, Diploma, Secondary School and related students.