bab 4

1. 1
ASSIGNMENT 5
QUESTION 1
Temporary investments for MSI Bhd at 30 June 2011 were as follows:
Company Cost Market value
25,000 shares in TNBB Bhd 87,250 86,750
20,000 shares in AICC Corporation 170,000 171,200
8,000 shares in Grand Union Holdings 63,000 62,920
10% Berjaga Bhd’s bond 96,000 96,000
Total 416,250 416,890
Below are the transactions regarding current investments of MSI Bhd for the year ended 30 June
2012:
1 July 2011 Received interest on Berjaga Bhd’s Bond.
23 August
2011
Disposed 20% of AICC Corporation shares in order to get immediate cash at
the price of RM9.80 per share. Broker’s cost and commission totaled
RM3,000.
1 Jan 2012 Sold all the bond of Berjaga Bhd at the rate of 84. The related commission
and tax expense were RM1,870.
4 March 2012 Bought 6 extra lots (1 lot = 1,000 unit) of Grand Union Holdings shares for
RM46,500. Other incidental cost incurred totaled RM4,200.
1 June 2012 Reclassified the investment in Grand Union Holding to long term investment.
Market value of the shares on this rate was RM8.50 per share.
Additional information:
 Market value at 30 June 2012 were as follows:
Company Msrket value per unit (RM)
TNBB Bhd 3.80
AICC Corporation 8.95
Grand Union Holdings 7.86
 120 units of 10% Berjaga Bhd bond were bought on 1 January 2011, at the rate of 80
with the face value of RM1,000 per unit. The interest on the bond is payable twice
annually on 1 January and 1 July.
REQUIRED:
(a) Prepare the necessary journal entries to record all the transactions involving investments
for the year ended 30 June 2012 for MSI Bhd (The investments were recorded using
LCM method- individual basis).

2. 2
(b) Show the appropriate disclosure for investment in the Statement of Financial Position of
MSI Bhd as at 30 June 2012. Show also the supporting schedule.
QUESTION 2
Kelisa Sdn Bhd was established early 2009. Information on short term investments of the
company is as follows:
Portfolio Acquisition Date Cost (RM)
1200 units of shares in Keli 3 March 2011 48,000
600 units of shares in Kerisi 10 June 2011 51,600
10% bond in Kerapu, interest is paid on 31 Disember
annually
1 Sept 2011 30,000
Note: All the transactions regarding the acquisition of short term investments above have been
recorded.
Additional information:
(a) On 28 August 2011, Kelisa bought 300 additional shares in Keli at the price of
RM11,400. Broker’s commission paid was RM210.
(b) On 1 September 2011, Kelisa sold 250 shares in Kerisi at the price of RM23,750.
Broker’s fee incurred was RM110.
(c) On 10 October 2011, Kelisa bought 1,500 shares in Kerang at the price of RM67,500.
Broker’s commission paid was RM320.
(d) On 30 December 2011, the BODs of Kelisa have decided to reclassify the investment in
Kerisi from short term investment to long term investment. The fair value per unit for
investment in Kerisi was RM78.50.
(e) At the reporting date, i.e. 31 December 2011, the fair value of shares and bond were as
follows:
Company Fair value per
unit (RM)
Keli 42.10
Kerang 46.30
10% Bond in Kerapu RM24,000
(f) Kelisa uses the Lower of Cost or Market Value method – portfolio basis.
REQUIRED:
(a) Prepare journal entries and adjusting entries to record all transactions of short term
investments for Kelisa Sdn Bhd in 2011.