Beta Bhd$,$ a public listed company based in Seremban, manufactures a wide variety

of household cooking appliances. The following is the trial balance of Beta Bhd as at

$31$ December $2023$:

Debit

RM$000$

Credit

RM$000$

Sales revenue $48,000$

Cost of sales $28,000$

Administrative expenses $8,512$

Selling and distribution expenses $3,680$

Loan notes interest $($Note i$)420$

Ordinary dividends paid $1,000$

Taxation paid $1,620$

Ordinary share capital $50,500$

Retained earnings $($at $01\mathrm{.}01\mathrm{.}2023)4,880$

$7\%$ loan notes $($issued on $1$ January $2023)12,000$

Accounts payable $3,638$

Allowance for doubtful debts $512$

Deferred tax liability $($at $01\mathrm{.}01\mathrm{.}2023)670$

Accumulated depreciation $$ Plant $($at $31\mathrm{.}12\mathrm{.}2023)300$

Accumulated depreciation $-$ Machinery and

equipment $($at $31\mathrm{.}12\mathrm{.}2023)1,440$

Accumulated depreciation $-$ Building $3,360$

Bank $($at $31\mathrm{.}12\mathrm{.}2023)6,700$

Accounts receivable $3,200$

Inventory $17,768$

Plant $($Note ii & iii$)($at $31\mathrm{.}12\mathrm{.}2023)800$

Machinery and equipment $($at $31\mathrm{.}12\mathrm{.}2023)4,800$

Land and building $($Note iv$)($at $31\mathrm{.}12\mathrm{.}2023)36,800$

Investments $($Note v$)12,000$

Total $125,300125,300$

The following notes are relevant:

i$.$ The second half$-$year interest on loan notes has not been

provided.

ii$.$ The plant was acquired at a cost of RM$800,000$ on $1$ January

$2022$ and had an estimated residual value of RM$50,000$ with a

useful life of $5$ years. On $31$ December $2023,$ Beta Bhd was

informed by its major customer that it would no longer be

purchasing the cooking appliances from Beta Bhd due to closure

of its own business. The estimated net cash inflows to be earned

from the plant for the next three years will be:

Year Ended: RM$000$

$31\mathrm{.}12\mathrm{.}2024180$

$31\mathrm{.}12\mathrm{.}2025140$

$31\mathrm{.}12\mathrm{.}2026100$

iii. The net realizable value of the plant on $31$ December $2023$ is

estimated to be RM$400,000.$ Beta Bhd$$s cost of capital is $10\%$

and the following values should be used:

Value of RM$1$

at:

Discount factor

End of Year $10\mathrm{.}91$

End of Year $20\mathrm{.}83$

End of Year $30\mathrm{.}75$

iv$.$ The land which is carried at a cost of RM$8\mathrm{.}8$ million was

revalued to RM$10$ million on $31$ December $2023.$ It is the policy

of the company to disclose the land at its fair value.

v$.$ Of the total investments of RM$12$ million, RM$5$ million was

classified as investment held$-$for$-$trading. The fair value at the

year$-$end was RM$6\mathrm{.}5$ million. The balance was classified as

available$-$for$-$sale and the market value was RM$8$ million.

vi$.$ The tax expense for the year ended $31$ December $2023$ was

estimated at RM$1,408,000$ including the changes to the deferred

tax liability. The net taxable temporary difference on $31$

December $2023$ was RM$1,680,000.$ The tax rate for the year

was $25\%.$ Deferred tax is not to be provided on the property

revaluation.

Required:

In accordance with the relevant Malaysian Financial Reporting Standards, prepare

the following financial statements for the year ended $31$ December $2023$ for Beta

Bhd:

$($a$)$ Statement of Profit or Loss and Other Comprehensive Income, and

$[18$ marks$]$

$($b$)$ Statement of Financial Position.

$[22$ marks$]$