(a) Andalusia Sdn Bhd is involved in supplying music instrument business. The retained earning account in the Books of A
Posted: Tue Jul 05, 2022 1:37 pm
- A Andalusia Sdn Bhd Is Involved In Supplying Music Instrument Business The Retained Earning Account In The Books Of A 1 (73.63 KiB) Viewed 6 times
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(a) Andalusia Sdn Bhd is involved in supplying music instrument business. The retained earning account in the Books of Andalusia Sdn Bhd showed an opening balance of RM500,000 as at 1st July 2020. During the year ended 30 June 2021, situations below were identified: i. On 10 June 2020, it was identified that the acquisition of furniture worth RM25,000 on 1 July 2018 was mistakenly treated as maintenance expenses. It is company's policy to depreciate furniture at 10% on cost. ii. Andalusia Sdn Bhd acquired motor vehicles costing RM80,000 on 1 July 2017 and depreciate over 10 years. Due to heavy usage of musical instrument delivery, management has decided to change estimation useful life from 10 years to 8 years on 1 July 2020. As an account's clerk in Andalusia Sdn Bhd you are required to: i. ii. provide necessary journal entries to rectify the situation above based on MFRS108 (show relevant calculation). [10 marks] propose restatement of changes in equity (extract retained earnings) for the year ended 30 June 2021. [5 marks]