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QI. The following trial balance is extracted from the books of B-Strong Bhd: Trial balance as at 31 December 2018 RM RM 96,000 100.000 192.000

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QI. The following trial balance is extracted from the books of B-Strong Bhd: Trial balance as at 31 December 2018 RM RM 96,000 100.000 192.000 480,000 24.000 96,000 480,000 576,000 192,000 10,000 216.000 40.000 8% debentures 8% preference shares of RM1/- each Asset revaluation reserve Building (cost) Deferred tax liability Furniture and fittings (cost) Land (revalued) Ordinary shares of RM1/- each Plant and equipment (cost) Research expenses Retained profits b/d Tax paid Accumulated depreciation at 1.1.2018: Building Plant and equipment Furniture and fittings Accounts payable Accounts receivable Advertising expenses Bank Debenture interest Directors' fees Insurance Inventory at 1.1.2018 Ordinary dividends Preference dividends Printing and stationery Purchases Salaries Sales Utilities 19.200 60,000 28,800 333.600 52,800 66,000 284,960.20 3,840 76.800 5,280 72.000 16,588.80 2.880 6,000 432,000 116,000 805,549 18,000 2,451,149 2,451,149 Additional information: The company has an authorized capital of RM 960,000 which are made up of 760,000 ordinary shares of RM1/- each and 200,000 8% preference shares of RM1/- each Purchases of a plant and equipment worth RM 30,000 by cheque have been omitted from the books of accounts. Inventory as at 31 December 2018 valued at RM 86,000. Net realizable value is RM 72,000. At the end of the year there was prepaid insurance amounting RM 1.440 and RM 960 of stationery has not been used. Depreciation on non-current assets are to be provided as follows: Building, 2% on cost Plant and equipment, 10% on cost Furniture and fittings, 20% Reducing Balance Method Tax expense for the year is estimated at RM 60,000, including an increase in deferred tax liability of RM 10,000. Tax rate for the year is assumed to be 28%. Required: (a) Prepare Statement of Profit or Loss for the year ended 31 December 2018 (15 marks) (b) Prepare Statement of Financial Position as at 31 December 2018. (15 marks) [Total: 30 marks

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