Question 3 Redbean Sdn. Bhd. prepared its financial statements every 30 September. The trial balance of Redbean Sdn. Bhd. that specialize in organic farm product is given below: Credit RM Debit RM 200,000 677,500 10,500 850,000 120,000 20,000 20,000 390,000 25,000 40,000 80.000 310,000 1,200,000 1,800,000 Inventory Bank Prepayment Trade receivables and payables Administrative expenses Selling and distribution expenses Debentures interest Interim dividends paid: Preference share Tax paid Tax payables Land Freehold properties (cost) Plant and machinery Accumulated depreciation as at 1 October 2019: Freehold properties Plant and machinery 10% debentures Ordinary shares of RM1 each 10% preference shares of RM1 each General reserve Retained profit Sales Purchase Returns Carriage inwards Loan Bank overdraft Short-term investment Cash Dividend payable Revaluation reserve Provision for doubtful debts Provision for discount allowable Bad debts 300,000 1,100,000 400,000 1,000,000 500.000 200,000 540.000 800,000 240,500 1,500 1,500 3,500 124,000 20.000 30,000 7,000 30,000 50.000 15,500 10,500 10,000 5,563,500 5,563,500 Additional information: 1. The authorized capital consists of 1,500,000 10% preference shares of RM1 each and 2,000,000 ordinary shares of RM1 each. 2. Inventories as at 30 September 2020 were RM160,000 valued at lower of cost and net realizable value. 3. The land was revalued to RM280,000 by an independent professional valuer. The directors want to incorporate the value in the account. 4. Second half-year's debenture interest is to be accrued. 5. Provision for doubtful debts was to be adjusted to 5% of the remaining trade receivables. Provision for discount allowable was to be at 4% of potential good receivables. 6. Tax charge on the current year profit is estimated at RM20,000 7. Transfer RM 100,000 to general reserve. 8. Depreciation on yearly basis is to be provided as follows: Plant and machinery Properties 20% on book value 50 years useful life 9. The director declared year end dividends of 40 sen per ordinary shares. The final preference dividends are to be accrued. Required: (a) Prepare Statement of Comprehensive Income for the year ended 30 September 2020. (10marks) (b) Prepare Statement of Financial Position as at 30 September 2020. (Show al workings). (10 marks) [20 marks]