QUESTION 2 DREAMS BHD TRIAL BALANCE AS AT 31-Dec-20 RM RM 2,648,000 Sales Loan note interest paid Purchases Distribution cost Administrative cost Interim dividend paid Inventories on 1st Jan 2020 Trade receivables and payables Cash and cash equivalents Ordinary shares @ RM 0.50 General reserve Retained profit 4% loan note Land & Building Accumulated depreciation land & building Plant & equipment Accumulated depreciation plat & equipment Investment property Rental income Proceeds from sale of equipment TOTAL 3,000 1,669,000 514,000 345,000 6,000 444,000 545,000 434,000 28,000 100,000 814,000 349,000 150,000 380,000 64,000 258,000 126,000 548,000 48,000 7,000 4,740,000 4,740,000 Additional Information: 1. Closing inventories were counted and amounted to RM 388,000. However, shortly after the year end out of date inventories with a cost of RM 15,000 were sold for RM 8,000. 2. Management decide to change its accounting policy respects to its 10- year-old land and buildings from the cost model to revaluation model. The revalued amounts at 1* January 2020 were RM 80,000 (including RM 10,000 for the land). No further revaluation was necessary at 31* December 2020. The management wishes to treat the revaluation surplus as being realized over the life of the asset. 3. An item of plant with carrying amount RM 22,000 at 31 December 2020 (after adjusting for depreciation for the year) may be impaired due to a change in use. An impairment test conducted at 31 December, revealed its fair value less costs to sell to be RM 16,000. The value in use was RM 18,000. 4. The tax payable for the year is estimated RM 27,000 5. During the year, Dreams Bhd also disposed some malfunctioning equipment for RM 7,000. The equipment had cost RM 15,000 and accumulated depreciation RM 3,000. 6. Depreciation for the year as below: Buildings Plant and equipment Straight line over 50 years 20% reducing balance method You are required prepare: a) Statement of comprehensive income for the year ended 31 December 2020 b) Statement of changes in equity for year ended 31 December 2020 c) Statement of financial position as at 31st December 2020