Question 3 The following information has been extracted from the books of Tahan Bhd. a limited liability company as at 31 October 2020. Accounts Debit Credit RM'000 RM000 Cash 15 Insurance 75 Inventory at 1 November 2019 350 General expenses 60 Energy expenses 66 Marketing expenses 50 Wages and salaries 675 Discount received 50 Share premium account 200 Retained earnings at 1 November 2019 315 Provision for doubtful debts at 1 November 2019 40 Sales revenue 5.780 Telephone expenses 80 Property expenses 100 Bank 94 Return inward 95 Trade payables 290 Loan note interest 33 900 3,570 470 150 1,800 Trade receivables Purchases 7% loan notes bad debts Ordinary shares @ RM1 per share Accumulated depreciation at 1 November 2019: Buildings Motor vehicles Furniture and equipment Land at cost Buildings at cost Motor vehicles at cost Furniture and equipment at cost 360 80 420 740 1,500 240 1,200 9,899 9,899 You have also been provided with the following information: 1. Inventory at 31 October 2020 was valued at RM275,000 based on its original cost. However RM45,000 of this inventory has been in the warehouse for over two years and the directors have agreed to sell it for a cash price of RM20,000 (Events after reporting period). 2. The marketing expenses include RM5,000 which relates to November 2020. 3. Based on past experience the allowance for receivables is to be increased to 5% of trade receivables. 4. There are wages and salaries outstanding of RM40,000 for the year ended 31 October 2020. 5. Buildings are depreciated at 5% of cost. At 31 October 2020, the buildings were professionally valued at RM1,800,000 and the directors wish this valuation to be incorporated into the accounts. 6. Depreciation is to be charged as follows: 1. Motor vehicles at 20% of written down value. 2. Furniture and equipment at 20% of cost. 7. No dividends have been paid or declared. 8. Tax of RM150,000 is to be provided for the year. 9. During October 2020 a bonus issue of one for ten shares was made to ordinary shareholders. This has not been entered into the books. The share premium account was used for this purpose. Required: Prepare the following statements: (a) The Statement of comprehensive income for the year ended 31 October 2020. (12 marks) (b) The statement of final position as at 31 October 2020. (13 marks) [Total: 25 Marks)