QUESTION 1 The following trial balance was extracted from the ledger of ABC Trading Sdn. Bhd., a hypermarket, on 31st October 2019: RM RM Sales revenue 3,121,000 Inventories at 1st November 2018 175,000 Purchases 1,287,000 Distribution costs 310,000 Administrative expenses 353.500 Other operating expenses 145,000 Other operating income 350,000 Land and building 1,000,000 Land and building accumulated depreciation 160,000 Plant and machinery 726,400 Plant and machinery accumulated depreciation 326,000 Investment properties 321,000 Intangible assets 100,000 Biological assets 550,000 Trade receivables 44,000 Cash and bank balances 238,000 Share capital 700,000 8% Bank loan 200,000 Retained earnings at 1st November 2018 327,200 Finance cost Tax expense Dividends expense Accounts payable 12,000 140,300 80,000 298,000 5,482,200 5,482,200 The following information is available at year end and has yet to be accounted for: i) After the 31st October 2019 stocktake, a comparison of the weighted-average cost method adopted by the company in valuing its inventory and the net realizable value of each item was undertaken. Net realizable value was estimated on the general pattern of sales and discounts. However, due to the miscalculations in purchasing, it was discovered that two lines of inventories would have to be sold at substantial discounts. The book value of the inventory counted during the stocktake was RM285,000 but RM120,000 of the amounts had to be sold at 50% discounts.