In: Accounting
The following trial balance relates to Atlop Sdn Bhd at 31 March 2020 :
RM’000 |
RM’000 |
|||||
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
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.
Required :
c) Prepare the changes on equity on related column only.