3 Question 3 Gerhana Bhd prepares annual financial statements by 30 September. On 30 September 2021, the company's list of account balances was as follows: Sales Revenue Production costs Inventory at 1 October 2020 Distribution costs Administrative expenses Loan interest expense Land at valuation Building-costs Building-acc. depreciation Plant and equipment - cost Plant and equipment - acc. depreciation Trade receivables Trade payables Bank overdraft Issued shares (RM0.50 per share) on 30th September 2021 Share premium on 30th September 2021 Revaluation reserve Retained earnings 12% loan (payable 2026) RM'000 RM'000 7,400 4,140 695 540 730 120 5,250 4,000 1,065 6,400 1,240 2,060 1.120 40 7,000 2,000 1,500 1,570 1,000 23,935 23,935 The following matters are relevant to the preparation of the financial statements for the year ended 30 September 2021: 1. Inventory on 30 September 2021 amounted to RM780,000 at cost before adjusting for the following: (i) Items that had cost RM40,000 and which would normally sell for RM60,000 were found to be faulty. RM10,000 needs to be spent on these items to sell for RM45,000. (ii) Goods sent to a customer on a sale or return basis have been omitted from inventory and included as sales in September 2021. The cost of these items was RM8,000 and they were included in revenue at RM12,000. The goods were returned by the customer in September 2021. 2. Depreciation is to be provided on cost as follows: Buildings 2% per year Plant and equipment 20% per year 2. Depreciation is to be provided on cost as follows: Buildings 2% per year Plant and equipment 20% per year 80% of the depreciation is to be charged to the cost of sales and 10% to each of distribution costs and administrative expenses. 3. Land is to be revalued to RM5,000,000. 4. Accrued expenses and prepayment were: Accrued expenses Prepayments Distribution costs Administrative expenses RM'000 95 35 RM'000 60 30 5. During the year, 4 million ordinary shares were issued at RM0.75 each. The directors of Gerhana Bhd declared a final dividend of 2 cents per share in September 2019. No dividends were paid during the year. 6. Loan interest is paid annually, in arrears, on 30 September each year. Required: (a) Prepare a statement of comprehensive income; (b) Prepare a statement of changes in equity; and (10 marks) (7 marks) (8 marks) (c) Prepare a statement of financial position. for Gerhana Bhd in accordance with IAS 1 Presentation of Financial Statements. Show the working solutions. [Total: 25 Marks]