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The following situations has occurred Manja Bhd. The company's draft financial statement for the year ended 31 March 2020 was completed on 28 February
The following situations has occurred Manja Bhd. The company's draft financial statement for the year ended 31 March 2020 was completed on 28 February 2020. The board of directors reviewed the financial statements on 20 April 2020 and authorized them for issue on 6 May 2020. The annual general meeting will be held on 3 June 2020. a) One of its warehouses was destroyed in a fire and a loss of RM200,000 was estimated for the damaged inventories on 10 April 2020. (2 marks) b) Another warehouse had a single class of inventory held was valued at its cost of RM552,000 at 31 March 2020. In April 2020, 70% of this inventory was sold for RM336,000 of which Perkasa's sales staff earned a commission of 15% as at 31 March 2020. (5 marks) c) Due to the covid-19 pandemic, the government announced tax changes on 18 May 2020, which have the effect of decreasing Perkasa's deferred tax liability by RM100,000 as at 31 March 2020. (2 marks) Required: Explain the required treatment of the above items by Perkasa in its financial statements for the year ended 31 March 2020. Total: 9 marks
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