Question 1

The following trial balance has been extracted from the books Punisher Berhad as at 31st December 2019

Items	Debit	Credit
	(RM000)	(RM000)
Creditors		69
Bank	7
Advertising	30
Debentures (10%)		70
Debtors (All trade)	300
Directors remuneration	55
Electricity Investments (quoted)	28
Insurance	17
Electricity	28
Investment income		4
Machinery: At cost	420
Accumulated depreciation at 1st January 2019		152
Office expenses	49
Ordinary share capital (issue and fully paid)		200
Preference shares		50
Preference share dividend	4
Profit and loss account (at Jan 2019)		132
Provision for bad and doubtful debts		8
Purchases	1240
Rent and rates	75
Sales		2,100
Stock (at 1st Jan 2019)	134
Vehicles: At Cost	80
Accumulated depreciation (1st Jan 2019)		40
Wages and salaries	358
		2,825
Total	2,825

Additional information:

1. Stock at 31st December 2019 valued at cost amounted to RM155,000.

2. Depreciation is to be provided on machinery and vehicles at a rate of 20 per cent and 25 per cent respectively on cost.

3. Provision is to be made for auditors remuneration of RM12,000.

CONFIDENTIAL

4. Insurance paid in advance at 31st December 2019 amounted to RM3,000.

5. The provision for bad and doubtful debts is to be made equal to 5 per cent of outstanding trade debtors as at at 31st December 2019.

6. Corporation tax owing at 31st December 2019 is estimated to be RM60,000. 7. An ordinary dividend of 10 cent per share is proposed.

8. The investments had a market value of RM30,000 at 31st December 2019.

9. The company has an authorized share capital of 600,000 ordinary shares of RM0.50 each and 50,000, 8 per cent cumulative preference share of RM1.00 each.

Required to:

a) Construct Punisher Berhads Statement of Comprehensive Income (Profit & Loss) for the year to 31 December 2019.

(10 marks)

b) Construct Punisher Berhads Statement of Financial Position (Balance Sheet) for the year to 31 December 2019.

(10 marks)