CONFIDENTIAL 1 AC/FEB 2022/FAR320
UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE : FINANCIAL ACCOUNTING 5
COURSE CODE : FAR320
EXAMINATION : FEBRUARY 2022
TIME : 3 HOURS
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of five (5) questions.
2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.
3. Do not bring any material into the examination room unless permission is given by the
invigilator.
4. Please check to make sure that this examination pack consists of:
i) the Question Paper
ii) an Answer Booklet – provided by the Faculty
5. Answer ALL questions in English.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 7 printed pages
© Hak Cipta University Teknologi MARA CONFIDENTIAL
, CONFIDENTIAL 2 AC/FEB 2022/FAR320
QUESTION 1
Lana Bhd acquired shares and debentures in Lini Bhd on 1 January 2019. On that date, the
balance in general reserve and retained profit of Lini Bhd were RM80,000 and RM50,000
respectively. Below are the statements of financial position of Lana Bhd and Lini Bhd as at 31
December 2020.
Lana Bhd Lini Bhd
RM RM
Assets
Land and building 1,100,000 640,000
Plant and machinery at carrying value 1,360,000 911,600
Motor vehicles at carrying value 468,000 435,600
Investment in Lini Bhd at cost:
960,000 ordinary shares 1,040,000
160,000 10% preference shares 160,000
RM80,000 10% debentures 80,000
Inventories 240,000 180,000
Account receivables 76,000 98,000
Bills receivables 100,000 60,000
Bank 296,000 394,800
4,920,000 2,720,000
Equities and liabilities
Ordinary share capital 2,000,000 600,000
10% preference share capital 800,000 400,000
General reserves 600,000 400,000
Retained profits 800,000 680,000
10% Debentures 400,000 400,000
Bills payable 120,000 80,000
Account payables 200,000 160,000
4,920,000 2,720,000
Additional information:
1. Share capital and debentures of Lini Bhd on the date of acquisition are as follows:
RM
1,200,000 ordinary shares 600,000
400,000 10% preference shares 400,000
10% debentures 400,000
2. On 1 January 2020, Lini purchased a machine with a carrying amount of RM460,000
from Lana Bhd for RM500,000. Both companies depreciate plant and machinery at
20% per-annum on reducing balance method, yearly basis.
3. During the year 2020, Lana Bhd had invoiced inventories to Lini Bhd at a profit
margin of 40%. At the end of the accounting year, RM40,000 worth of these goods
are still remained in the closing inventories of Lini Bhd.
© Hak Cipta University Teknologi MARA CONFIDENTIAL
UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE : FINANCIAL ACCOUNTING 5
COURSE CODE : FAR320
EXAMINATION : FEBRUARY 2022
TIME : 3 HOURS
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of five (5) questions.
2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.
3. Do not bring any material into the examination room unless permission is given by the
invigilator.
4. Please check to make sure that this examination pack consists of:
i) the Question Paper
ii) an Answer Booklet – provided by the Faculty
5. Answer ALL questions in English.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 7 printed pages
© Hak Cipta University Teknologi MARA CONFIDENTIAL
, CONFIDENTIAL 2 AC/FEB 2022/FAR320
QUESTION 1
Lana Bhd acquired shares and debentures in Lini Bhd on 1 January 2019. On that date, the
balance in general reserve and retained profit of Lini Bhd were RM80,000 and RM50,000
respectively. Below are the statements of financial position of Lana Bhd and Lini Bhd as at 31
December 2020.
Lana Bhd Lini Bhd
RM RM
Assets
Land and building 1,100,000 640,000
Plant and machinery at carrying value 1,360,000 911,600
Motor vehicles at carrying value 468,000 435,600
Investment in Lini Bhd at cost:
960,000 ordinary shares 1,040,000
160,000 10% preference shares 160,000
RM80,000 10% debentures 80,000
Inventories 240,000 180,000
Account receivables 76,000 98,000
Bills receivables 100,000 60,000
Bank 296,000 394,800
4,920,000 2,720,000
Equities and liabilities
Ordinary share capital 2,000,000 600,000
10% preference share capital 800,000 400,000
General reserves 600,000 400,000
Retained profits 800,000 680,000
10% Debentures 400,000 400,000
Bills payable 120,000 80,000
Account payables 200,000 160,000
4,920,000 2,720,000
Additional information:
1. Share capital and debentures of Lini Bhd on the date of acquisition are as follows:
RM
1,200,000 ordinary shares 600,000
400,000 10% preference shares 400,000
10% debentures 400,000
2. On 1 January 2020, Lini purchased a machine with a carrying amount of RM460,000
from Lana Bhd for RM500,000. Both companies depreciate plant and machinery at
20% per-annum on reducing balance method, yearly basis.
3. During the year 2020, Lana Bhd had invoiced inventories to Lini Bhd at a profit
margin of 40%. At the end of the accounting year, RM40,000 worth of these goods
are still remained in the closing inventories of Lini Bhd.
© Hak Cipta University Teknologi MARA CONFIDENTIAL
