90.2K

Verified Solution

Link Copied!

The following trial balance relates to Atlop Sdn Bhd at 31 March 2020 :

			RM000			RM000
Ordinary share @ RM0.50 per share				70,000
Retained profit at 1 April 2019				11,200
Land and building at cost (land RM100milion)			60,000
(note i)
Plant and equipment at cost (note i)			94,500
Accumulated depreciation at 1 April 2019 :
-	Building			20,000
-	Plant and equipment			24,500
Inventories at 31 March 2020			43,700
Trade receivables			42,200
Bank				6,800
Deferred tax (note ii)				6,200
Trade payables				35,100
Revenue				550,000
Cost of sales			411,500
Distribution cost			21,500
Administrative expenses			30,900
Dividend paid			20,000
Bank interest			700
Current tax (note ii)				1,200
			725,000			725,000

The following notes are relevant :

8

1. Non current assets :

On 1 April 2019, the director decided that the financial statements would show an improved position if land and building were revalued to market value. At the date, an independent valuer valued the land at RM12 million and the building at RM35 million and these valuations were accepted by the directors. The remaining life of the buildings at that date was 14 years. Atlop does not make a transfer to retained profit for excess depreciation. Ignore deferred tax on the revaluation surplus.

Plant and equipment is depreciated at 20% per annum using the reducing balance method and time apportioned appropriate. All depreciation is charged to cost of sales but none has yet been charged on any non current asset for the year ended 31 March 2020.

2. Atlop estimates that an income tax provision of RM27.2 million is required for the year ended 31 March 2020 and at that date the liability to deferred tax is RM9.4 million. The movement on deferred tax should be taken to profit or loss. The balance on current tax in the trial balance represents the under/over provision of the tax liability for the year ended 31 March 2019.

Required :

1. Prepare the statement of profit or loss and other comprehensive income for Atlop for the year ended 31 March 2020.

(7 marks)

2. Prepare the statement of financial position of Atlop as at 31 match 2020.

(10 marks)

c) Prepare the changes on equity on related column only.

(3 marks)

Answer & Explanation Solved by verified expert

See Answer