Question 1 Below are the extract of account for Ming Jaya Sdn Bhd for the financial year ended 31 December 2019. Debit Credit RM'000 RM'000 Turnover 681,000 Inventory 15,000 Trade receivables and trade payables 82,000 41,000 Cost of sales 323,000 Administrative expenses 90,000 Selling and distribution expenses 102,000 Plant and machinery at cost 220,000 Building at cost 600,000 Freehold land at cost 108,000 Accumulated depreciation at 1 January 2019 Plant and machinery Building Asser Revaluation Reserve - Land Bank overdraft Cash in hand 85,000 210,000 22,000 19,000 13,670 Cash at Bank Term Deposit 42,230 13,900 Ordinary shares Preference shares Retained profit - 1 January2019 Long-term loan 385,000 65,000 13,560 88,240 1,609,800 1,609,800 Additional information (i) (ii) A new piece of plant & machinery was purchased for RM3,300,000 while old plant of machinery costing RM1,800,000 was sold for RM400,000. The book value of the machinery was RM360,000. The depreciation for plant & machinery was 10% and building was 5%. Depreciation is based on full year upon acquisition, and nil upon disposal.