QUESTION:

The following balances were extracted from the books of Paradigm Bhd as at 31 December 2021.

	DEBIT (RM)	CREDIT (RM)
Land	1,450,000
Building	1,720,000
Plant and Equipment	826,000
Motor Vehicle	598,000
Accumulated depreciation: Building Plant and equipment Motor Vehicle		554,000 149,000 45,200
Purchases and sales	114,100	886,950
Trade receivable and payable	71,250	35,500
Carriage inwards	2,140
Returns	2,400	2,700
Discounts	1,350	2,430
Custom duty on purchases	3,362
Inventories (1 January 2021)	64,400
Bank	480,800
Provision for doubtful debt		4,860
Repair and maintenance expenses	7,120
Salaries and wages	24,000
4% loan from Maybank		110,000
Interest on loan from Maybank	1,800
Insurance	1,860
Water and electricity	28,100
Bad debts	540
Investment	400,000
Dividend from investments		10,000
Comission received		4,802
Rent received		11,000
Bad debts recovered		6,700
Legal fees	420
General expenses	3500
General reserves		10,000
Retained profit		556,600
500,000 4% preference shares		600,000
2,500,000 ordinary share capital		2,900,000
Interim dividends paid: Preference dividend Ordinary dividend	10,000 75,000
Tax paid	23,600
	5,909,742	5,909,742

Additional informations:

1. The inventory as at year end amounted RM40,000.
2. The freehold land was revalued to the fair value of RM2,400,000 and this is to be incorporated in the books at 31 December 2021.
3. Depreciation charges is to be provided as follows:

Building	10% per annum on cost
Plant and Equipment	5% per annum on cost
Motor Vehicles	10% per annum on book value

Plant and equipment will be charged as general and administrative expenses and motor vehicles are to be charged as selling and distribution costs

4. Bad debts of RM1,500 are to be written off and the provision for doubtful debts is to be adjusted to 10% of the trade receivables.
5. Accrued salaries and wages amounted to RM55,000, while prepaid maintenance expenses for motor vehicles was RM5,000. The maintenance expenses are to be regarded as selling and distribution expenses.

6. The following expenses were still accrued during the year:

Directors remuneration	RM45,000
Auditors fees	RM18,000

7. The company decided to make a bonus issue of capital reserve, of two for every twenty ordinary shares held on 31 December 2021. The share price of ordinary shares was RM1.20.
8. At the year end 2021, the directors declared a final dividend both for preference share and RM0.04 for ordinary share.
9. The tax expense for the year was RM150,000

You are required to prepare:

1. Statements of Comprehensive Income for the year ended 31 December 2021.
2. Statements of Financial Position as at 31 December 2021.
3. Statement of Changes in Equity for the year ended 31 December 2021.
4. Notes for Property,Plant,Equipment, share capital, other components of equity and dividends.