QUESTION 2

Ali Berhad is a clothes manufacturer, The financial year end of Ali Berhad is on 31 December

2018. Presented below is a partial trial balance for Ali Berhad as at 31 December 2018.

Account Title	Debits	Credits
	RM	RM
Inventory	220,000
cash and cash equivalents	400,000
Goodwill	120,000
Land	?
Building	?
Accumulated depreciation for building
Unearned sales revenue		300,000
Note payable		2,000,000
Bank Loan		8,000,000
9Bond		5000,000

Additional information:

Ali Berhads inventory balance on if December 2018 alas RM220, 000 (based on an inventory count undertaken on 31 December 2018. The following items were all excluded from the RM220, 000.

1. Merchandise with the sa/es price of RM130,000 end merchandise cost of RM125,000 was shipped from Ali Berhad f.o.b shipping point to a customer on 27 December 2018. The customer is scheduled to receive the merchandise on 2 January 2019.

2. Merchandise shipped from Ali Berhad f.o.b. destination on 31 December 2018 is expected to be received by the customer on 2 January 2019. The sales price was RM80,000 and the merchandise cost RM60,000.

3. Merchandise shipped to Ali Berhad f.o.b shipping point on 31 December 2018 was received on 7 January 2019. The invoice cost was RM75,000.

2. RM300,000 of the cash balance above consists of cash restricted for future p/ant expansion.

3. On 1 January 2018, a plant facility consisting of land and building was acquired from Irau Berhad for RM980, 000. Currently, assessed values of land and building for properly tax purposes are RM250,000 and Rm 750,000 respectively. The building is estimated to have a useful life of 30 years and a residual value of RM135, 000. Ali Berhad uses straight-line depreciation method.

4. 9% of Bonds with a principal of RM5,000,000 above were issued for RM5,000, 000 on 30 June 2016. The Bond maturer on 30 June 2036. Bondholders have the option of calling (demanding payment on) the bonds at any time. However, the call option is not expected to be exercised given prevailing market conditions.

5. RM 400,000 of the Note payable amounting RM2,000,000 above is due in September

2019\

6. the loan of RM8,000,000 above is due on 31 December 2035i. On 1 July 2018, Aii Berhad breached a covenant on its debt obIigation and the loan becomes due on demand. Having convinced the bank that the covenant issue will resolved by the first quarter of 2019, Ali Berhad managed to obtain a waiver from the bank on 27 December 2018.

7. unearned sales revenue will be earned equally over the next 15 months

Required:

Based on the account balances from the partial trial balance and all the information given above and with reference to MFRS 101 - Presentation of Financial Statements, prepare a partial statement of financial position of Ali Berhad, showing the current asset, non current asset, current liabilities and non current liabilities section that should be presented at 31 December 20J8. The accounts should be property classified between current assets, non current assets, current liabilities and non current liabilities, and appropriate disclosure note should be included to explain the classification of the item (1) to (7). Provide all clear supporting calculations.

(Total : 18/marks)