The following trial balance was extracted from the books of MNZ Bhd as at 31 December 2019.

MNZ Bhd

Trial Balance as at 31 December 2019

Debit

RM000

Credit

RM000

Turnover

440,000

Inventory at 1 January 2019

5,000

Trade receivables and payables

30,000

27,500

Purchases

200,000

Administrative salaries

49,000

Selling and distribution expenses

32,500

Other expenses

2,750

Investment

117,000

Cash in hand and bank

5,250

Directors remuneration

17,000

Auditors fees

1,500

Ordinary share capital -200 million shares as at 1 January 2019

212,500

Retained profit as at 1 January 2019

33,500

5% debentures repayable in 10 years

70,000

Interim dividend paid

7,500

Debentures interest paid

3,000

Tax paid

32,500

Tax underprovided

1,000

Plant and machinery at cost

50,000

Building at cost

200,000

Freehold land

59,000

Accumulated depreciation as at 1 January 2019

Plant and machinery

Building

10,000

19,500

813,000

813,000

Additional information:

Included in the turnover is RM1 million for receipt that the companys auditor have advised are commission sales.

A physical count of inventories at the end of financial year revealed inventory at a cost of RM7,500,000. However, inventory costing RM2,000,000 was damaged and it was estimated that it could be sold for RM1,500,000.

The allowance for doubtful debts is to be adjusted to 2% of the remaining accounts receivable.

Depreciation is charged on the following asset:

Plant and machinery : 10% on cost

Building : 5 % on net book value

Depreciation is charged as follows:

Plant and machinery (cost of sales)

Building (administrative expenses)

The income tax expense for the year is RM35,000,000.

On 20 December 2019, the company proposed a final dividend of 5% at RM2.00 per share.

Land was revalued during the year. The surplus on revaluation was RM750,000.

At the end of the financial year, a bonus issue of 5,000,000 units at a price of RM2.00 per share was made and the company decided to utilize the retained earnings for this purpose. These shares are not ranked for the dividend.

Required:

Prepare the statement of profit or loss and other comprehensive income for the year ended 31 December 2019.

(8 marks)

Prepare the statement of changes in equity for the year ended 31 December 2019.

(3 marks)

Prepare the statement of financial position as at 31 December 2019.

(6 marks)

Notes on property, plant and equipment.

(3 marks)

[20 marks]