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SULTANAH BAHIYAH
COMMERCE DEPARTMENT
P 4201
Financial Accounting 3
Presentation (Chapter 3)
The information below relating to Syarikat Haqimi Berhad for the year ended 31
December 2007.
Jan 15 Bought 7 500 units RM1 ordinary shares in Hamka Berhad at RM 1.40 each.
Feb 14 Bought RM20 000 ordinary shares in Faez Berhad at RM15 000
Apr 28 Hamka Berhad issued two units bonus shares for every five units held.
May 31 Sold 4 200 units ordinary shares in Hamka Berhad at RM1.10 each.
Dec 20 Sold 3 150 units ordinary shares in Hamka Berhad at RM1. 40 each.
It is the policy of Haqimi Berhad to use the weighted average method of calculation the
cost of each investment sold, when determining the profit or loss rising at the time of
each disposal.
Prepare the investment account in the books of Syarikat Haqimi Berhad for the year
ended 31 December 2007.
Investment Account – Hamka Berhad
Date Particular Nom Incom Cost Date Particula Nom Incom Cost
e r e
(RM) (RM) (RM) (RM) (RM) (RM)
15/01/07 Bank - 31/05/07 Bank -
Bought 7500 - 1050 Sold 4200 - 4620
0
28/04/07 Bonus 3000 - - 30/11/07 Bank - 252 -
31/05/07 Profit on Bank - - 315
sale - - 420
30/11/07 Bank 1015 - 1260 20/12/07 Bank 3150 - 4410
20/12/07 Profit on
sale - - 1305
30/12/07 Profit & 31/12/07 Balance
Loss - 252 - c/d 4200 - 4140
Acct
1155 252 1348 1155 252 13485
0 5 0
01/01/08 Balance
b/d 4200 2880
01/01/08 Balance
b/d 2000 1500
0 0
Hamka Berhad
Faez Berhad
Question 2
Sekuriti Awana Berhad is an investment company located in KL. Besides its investment
activities in capital market of the Malaysian Bourse, the company made some investment in
other companies. The investment transactions for the year ended 30/06/2006 were as follows :
Date Transactions
15/07/2005 Bought 4,000 units ordinary shares from Wawa Bhd, at nominal RM 0.50
per share at cost RM 8,000.00
15/08/2005 Wawa Bhd, declares a bonus of 2 unit share for every 2 units held.
Sekurity
Awana Berhad sold 2500 units bonus shares at cost RM 2.00 per share.
03/10/2005 Bought 5,000 units ordinary shares from MFW Berhad with nominal price of
RM 1.00 per shares at cost of RM 0.75 per share.
01/04/2006 MFW Bhd made a right issue of 1 for every 2 shares held at RM 0.50. The
market price for the right is RM 0.25 per share.
You are required to prepare the investment accounts as it would appear in the book of
Sekuriti Awana Bhd for the year ended 30/06/2006.
Answer :
InvestmentAccount-10% Government Stock
Incom
Date Particular Nom e Cost Date Particular Nom Income Cost
1/7/05 Bank-Bought 20,000 833 11,276 1/8/05 Bank-dividend - 1,000 -
2/1/06 Contra - 100 - 2/1/06 Bank-sold 12,000 - 7,440
Profit on sale - - 780 2/1/06 contra - - 100
30/6/0
6 Profit & loss - 1,400 - 1/2/06 Bank-dividend - 1,000 -
30/6/06 Balance c/f 8,000 333 4507
20,000 2,333 12,047 20,000 2,333 12,047
Note:
InvestmentAccount-10% Government Stock
Date Particular Calculation
01/07/2005 Bank –bought cum 20,000 x 60.5% = 12,100
NIO- 20,000 x 10%x5/12= 833
11,267
Profit =2,500