Question $1$

Alves Berhad operates in electronic and computer industry. The Finance Manager was in the

process of preparing financial statements for the financial year when she was suddenly taken

ill. You have been passed the list of accounts balances along with information on the

outstanding issues as per below:

List of account balances as at $31$ December

$2022$:

The following additional information is available:Alves Berhad sold goods on $1$ January $2021$ for RM$400,000$ with one$-$year interest free

credit period and the full amount was included in sales and trade receivables. Alves Berhad

normally offers credit terms to customers at a rate of $5\%$ pa$.$

In February $2021$ Alves Berhad began selling new product on its website. The product is

sold on behalf of Becker Berhad. Alves Berhad's contract with Becker Berhad requires it to

remit immediately to Becker Berhad all amounts received from customers who buy the

product. Becker Berhad then fulfils all orders through deliveries made from its own

warehouse. Alves Berhad receives a commission of $15\%$ on all of the sales made each

month. Monthly reports showing total sales of the product are provided to Alves Berhad by

Becker Berhad $20$ days after the end of each month.

Becker Berhad's report showed total sales of RM$96,000$ for the month of December $2022,$

although no amounts have yet been recorded by Alves Berhad in respect of these sales.

Sales commission relating to sales in November $2022$ had been recognised and received

by Alves Berhad by $31$ December $2022.$

Alves Berhad entered into a share buyback scheme in September $2022.$ It reacquired

$15,000$ RM$1$ ordinary shares for RM$1\mathrm{.}75$ cash per share. The total cash paid was debited

to share capital and share premium based on this nominal value and premium per share.

The income tax payable for the year ended $31$ December $2022$ has now been estimated at

RM$34,000.$ The amount shown in the list of account balances above is the balance

remaining on the nominal ledger after paying the liability at $31$ December $2021,$ which was

settled at less than originally estimated.

Required:

a$)$ Prepare for Alves Berhad, a statement of profit or loss for the financial year ended $31$

December $2022($round the figures to the nearest RM$).$

$(11$ marks$)$

b$)$ Prepare for Alves BErhad, a statement of financial position as at $31$ December $2022($round the figures to the nearest RM$).(19$ marks$)$