Additional information:

(i) The company uses the method of First in First out (FIFO) for valuing its inventories. The net realisable value of the closing inventory is valued at RM56,500 at 31 May 2022.

(ii) The land owned by the company was revalued to RM492,500 by an independent professional valuer. The director has decided to incorporate a new value in the accounts and revalue the land every three years.

(iii) Annual insurance subscription for next years accounting period was paid on 1 February 2022.

(iv) Timberlake, one of customers were declared bankrupt. His debt of RM800 is to be written off. Allowance for doubtful debt and discount allowable is to be set at 10% and 5% respectively (allowance method).

(v) For the business operation of the year, RM12,500 of tax was charged.

(vi) Final dividend payment RM28,200 was declared by board of directors.

(vii) The interest on loan was accrued for 3 months.

(viii) Depreciation of non-current assets is to be provided as follows:

Building and premises - 40 years of useful life Motor vehicles - 10% on cost

Office Equipment - 15% on book value

Furniture and fittings - 10% on cost

Required to prepare:

(a) A Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 May 2022 (show your working).

(30 marks)

(b) A Statement of Financial Position as at 31 May 2022 (show your working).

Question Shahrizat Bhd provides the following balance of their account for the preparation of financial statements for year end 31 May 2022. Debit RM Credit RM Purchase and sales 230,000 439,000 Inventory-1 June 2021 160,000 Duty import 6,250 Salesmen's commission 5.000 Returns 7,570 2,000 Discount 4,350 22,200 Insurance 4,000 Dividend received 3,000 5.350 Carriage outwards Carriage inwards Salaries 2,000 43,000 468,000 187,200 units of Ordinary shares 220,000 units of 5% preference shares 220,000 Retained profits as at 1 June 2021 121,000 Rental received 40,000 Interest income 87,700 Office equipment repairs 10% Loan from RXF Holdings 225,000 5% Investment in AXH Bhd Motor vehicles repairs Goodwill Auditor's fees 7% debentures 100,000 Interim dividends paid: Preference dividends Ordinary dividends Debentures interest Cash at bank Land Building Motor vehicles at cost Office equipment at cost Furniture and fittings at cost Trade receivables and payable Tax paid Tax payable Allowance for doubtful debt Allowance for discount allowable Accumulated depreciation as at 1 June 2021: Building Motor vehicles Office equipment Furniture and fittings 350 65,000 7,300 13.750 8,000 3,000 15,120 6,000 65,060 490,000 345,000 125,000 60,000 144,000 54,000 21,000 1,890,100 25,500 30,000 2.150 1,500 49,350 12.700 11,000 30,000 1,890,100