Statement of Comprehensive Income for the year ended 31 December 2010

	Debit RM	Credit RM
Freehold land at cost	4,600,000
Building at cost	9,000,000
Plant and equipment at cost	5,800,000
Motor vehicles at cost	900,000
Accumulated depreciation on 1 January 2010:
Buildings		600,000
Plant and equipment		900,000
Motor vehicles		200,000
Ordinary share capital		10,000,000
5% preference share capital		3,000,000
10% debentures		800,000
Long term loan		400,000
Retained earnings as at 1 January 2010		2,890,000
General reserve		190,000
Rental income		140,000
Interim dividend	510,000
Share premium		1,800,000
Trade receivables/Trade payables	650,000	700,000
Allowance for doubtful debts		20,000
Sales		9,270,000
Cost of sales	5,716,000
Carriage outwards	100,000
Staff salaries	1,290,000
Advertising expense	100,000
Inventories at cost as at 31 December 2010	480,000
Cash at bank and in hand	156,000
Debenture Interest Bank Loan Interest	80,000 14,000
Administrative expenses	460,000
Distribution costs	324,000
Investment	230,000
Tax paid	180,000
Dividend income		120,000
Intangible asset at cost	440,000
	31,030,000	31,030,000

Additional information:

1.       Depreciation is to be charged as follows:

Building is depreciated at 20% per annum while plant and equipment at 10% on cost per annum and are to be charged as administrative expenses. Motor vehicles are depreciated at 20% on reducing balance method and are to be charged as distribution costs.

2.       Accrued staff salaries amounted to RM64,000, while prepaid advertising expense was RM30,000. The staff salaries are to be regarded as administrative expenses.

3.       On 31 December 2010, the board of directors has decided to:

a)      Transfer RM40,000 to general reserve; and

b)      Declare a final dividend on ordinary shares of 10% and second-half year preference dividend.

4.       The directors estimated the income tax expense for the year ended 31 December 2010 to be RM230,000.

5.       Included in the administrative expenses are:

Directors’ remuneration             RM180,000

Audit fees                                  RM 20,000