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The following trial balance was extracted from the books of HoodRobin Bhd as at 31 December...

The following trial balance was extracted from the books of HoodRobin Bhd as at 31 December 2019.

HoodRobin

Trial Balance as at 31 December 2019

    Debit

     ’000

      Credit

’000

Turnover

880,000

Inventory at 1 January 2019

10,000

Trade receivables and payables

60,000

55,000

Purchases

400,000

Administrative salaries

98,000

Selling and distribution expenses

65,000

Finance expenses

5,500

Investment

234,000

Cash in hand and bank

10,500

Director’s remuneration

34,000

Auditor’s fees

3,000

Ordinary share capital -400 million shares as at 1 January 2019

425,000

Retained profit as at 1 January 2019

67,000

5% debentures repayable in 10 years

140,000

Interim dividend paid

15,000

Debentures interest paid

6,000

Tax paid

65,000

Tax underprovided

2,000

Plant and machinery at cost

100,000

Building at cost

400,000

Freehold land

118,000

Accumulated depreciation as at 1 January 2019

Plant and machinery

Building

20,000

39,000

   1,626,000        

1,626,000

Additional information:

  1. Included in the turnover is 2 million for receipt that the company’s auditor has advised are commission sales.
  2. A physical count of inventories at the end of financial year revealed inventory at a cost of 15,000,000. However, inventory costing 4,000,000 was damaged and it was estimated that it could be sold for 3,000,000.
  3. Depreciation is charged on the following asset:

Plant and machinery            : 10% on cost

Building                              : 5 % on net book value

Depreciation is charged as follows:

Plant and machinery (cost of sales)

Building (administrative expenses)

  1. The income tax expense for the year is 70,000,000.

  1. On 20 December 2019, the company proposed a final dividend of 5%.

  1. Land was revalued during the year. The surplus on revaluation was 1,500,000.

  1. At the end of the financial year, a bonus issue of 10,000,000 units was made and the company decided to utilize the Retained Profit for this purpose. These shares are not ranked for the dividend.

Required:

  1. Prepare the statement of profit or loss and other comprehensive income for the year ended 31 December 2019.

                                                                                                                           

  1. Prepare the statement of changes in equity for the year ended 31 December 2019.

  1. Prepare the statement of Financial Position as at 31 December 2019.

[25 marks]

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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