Question 3: The trial balance of Spirometer Berhad at 31 December 2019 is given below. Debit RM'000 18,000 4.500 850 Credit RM'000 28.600 1,850 Purchases and sales revenue Inventory at 1 January 2019 Warehouse wages Salesperson's salaries and commission Administrative salaries General administrative expenses General distribution expenses Director's remuneration Debenture interest paid Dividends - interim dividend paid Non-current assets: PPE Accumulated Depreciation, 1 January 2019 Trade receivables and payables Allowance for Doubtful Receivables at 1.1.19 Balance at bank 10% Debentures (repayable 2022) Share capital (RM1 Ordinary Shares) Retained earnings, 1 January 2019 Suspense account (see note 3 below) 3,070 580 490 870 100 40 18,000 6.900 3,900 3.800 200 2.080 1.000 5 300 8.720 1650 55.250 55,250 Additional information 1. Closing inventory amounted to RM5 million. 2. A review of the trade receivables of RM6.9 million showed that it was necessary to write off receivables totaling RM0.4 million, and that the allowance for Doubtful Receivables should be adjusted to 2 per cent of the remaining trade receivables. 3. Two transactions have been entered in the company's cash record and transferred to the suspense account shown in the trial balance. They are: a a. The receipt of RM1.5 million from the issue of 500,000 RM3 ordinary shares. b. The sale of some surplus plant. The plant had cost RM1 million and had a written-down value of RM100.000. The sale proceeds of RM150,000 have been credited to the suspense account but no other entries have been made. 4. Depreciation should be charged at 10 per cent per annum on cost at the end of the year and allocated 70 per cent to Distribution Costs and 30 per cent to Administration. 5. The directors propose a final dividend of RM0.04 per share on the shares in issue at the end of the year. 6. Accruals and prepayments still to be accounted for are: DF 6. Accruals and prepayments still to be accounted for are: Accruals Prepayments RM'000 70 40 General Administrative expenses General distribution expenses RM'000 140 90 110 230 7. Director's remuneration is to be analyzed between distribution costs and administrative expenses as follows: Distribution Administration RM'000 300 570 870 8. Ignore taxation Required (a) Prepare the company's Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019 according to MFRS 101 (20 marks) (b) Prepare Statement of Financial Position as at 31 December 2019 according to MFRS 101 (10 marks) [Total 30 marks]