The trial balance of Ranpill Bhd. as at 30 September 2020 is given below. Dr Cr Note RM'000 RM000 1,600 700 14,300 1 100 1,080 20 2 6,000 2,100 20 3,150 3 Administrative expenses Bank Cost of sales Convertible loan notes Distribution costs Deferred taxation 1 October 2019 Equipment, fixtures and fittings at cost Equipment, fixtures and fittings - accumulated depreciation at 1 October 2019 Finance cost Intangible assets at cost Intangible assets - accumulated amortisation at 1 October 2019 Investment property Inventory at 30 September 2020 Ordinary shares Ordinary dividends paid Revenue Retained earnings at 1 October 2019 Trade payables Trade receivables Tax payable at 1 October 2019 1,000 4 5 2,640 1,500 4,940 500 21,500 2,000 1,650 1,850 30 33,340 33,340 Additional information: (1) Ranpill Bhd. issued 100,000 RM1 convertible loan notes on 1 October 2019. No interest will be paid on the loan notes. The loan notes are redeemed on 30 September 2022 for RM133,100. The effective finance cost is 10% per annum. (2) Equipment, fixtures and fittings are depreciated at 10% per annum using the straight-line method. Depreciation of equipment, fixtures and fitting is charged to administrative expenses. (3) The intangible assets consist of: (0) Intangible assets acquired on 1 October 2017. (ii) Expenditure incurred on the research phase of an internal project. RM'000 3,000 150 Ranpill Bhd. amortises the intangible asset over its useful life of 6 years. On 30 September 2020, Ranpill Bhd. undertook impairment testing and determined the recoverable amount of the intangible assets that it acquired on 1 October 2017 to be RM1.2 million. Amortisation of intangible assets is charged to cost of sales. (4) On 1 November 2019, Ranpill Bhd. acquired an investment property at RM2.64 million and adopted the fair value model for subsequent measurement. On the date of acquisition, the investment property has a useful life of 25 years. On 30 September 2020, the fair value of the investment property increased to RM2.7 million. Ranpill Bhd. has not recognised the increase in the value of the investment property in its financial statements as at 30 September 2020. (5) It has been discovered that inventory totalling RM120,000 had been omitted from the inventory count in the above trial balance. (6) On 1 January 2020, Ranpill Bhd. renews its property's insurance policy and paid RM48,000 for the insurance premium covering one year. The insurance premium paid was charged to administrative expenses. (7) The provision for income tax for the year is estimated at RM400,000. The deferred tax liability for the year ended 30 September 2020 is RM15,000. Required: (a) Prepare an adjusted trial balance as at 30 September 2020. The format of the adjusted trial balance is as follows: Account Description Unadjusted Trial Balance Dr Cr RM'000 RM'000 4,940 Adjusted Trial Adjusting Entries Balance Dr Cr Dr Cr RM'000 RM'000 RM'000 RM'000 4,940 Ordinary shares (Note: Show all relevant workings) (24 marks) (b) Prepare the following statements for Ranpill Bhd. in accordance with the requirements of IAS 1/ MERS 101. (1) A statement of Profit or Loss and Other Comprehensive Income for the year ended 30 September 2020. (3.5 marks) (ii) A Statement of Changes in Equity for the year to 30 September 2020. (2.0 marks) (ii) A Statement of Financial Position as at 30 September 2020. (5.5 marks)
