Vaccine Traders (Reg. No. W1804) is a drugstore that buys and sells vaccine and herbs for contagious diseases. Its non-current assets at 31 March 2020 and 31 March 2021 are as follows:

	31 March 2021	31 March 2020
Non-current assets	RM000	RM000
Cost
Land and building	2,400	2,400
Plant and machinery	540	420
Motor vehicles	320	240
Accumulated depreciation
Land and building	192	160
Plant and machinery	264	195
Motor vehicles	184	150

The following additional information was available:

1. Land and buildings represent the entitys office premises. One-third of the value is attributable to buildings and two-thirds to land.

On 1 April 2020 land and buildings were revalued at RM2,700 000. No accounting entries to record this had been made.

2. A new motor vehicle was purchased for RM110,000. This was paid for with a cheque for RM80,000 and the part-exchange of an old motor vehicle. The old vehicle had cost RM75,000 and had been depreciated by RM27,000. The cheque payment had been recorded in the bank account and motor vehicle at cost account.

There were no other purchases or disposals of motor vehicles during the year.

3. A customer who owed RM23,500 was unable to pay. Vaccine Traders has agreed to take over one of the customers machines at the value of RM20,000 in full settlement of the debt. The machine was received on 15 February 2021. No record had been made of this arrangement.

4. Depreciation has been charged as follows and included as an expense when calculating the draft profit for the year.

Land Nil

Buildings 4% per annum on cost

Plant and machinery 20% per annum using reducing balance method

Motor vehicles 20% per annum using reducing balance method

A full years depreciation is charged in the year of purchase and no depreciation in the year of disposal.

The draft profit for the year ended 31 March 2021 was RM95,000.

Required:

1. Explain one benefit of Vaccine Traders financial statements to each of the following:

(i) owner [3]

(ii) potential investors [3]

(iii) bank. [3]

2. Prepare a statement to calculate the adjusted profit for year ended 31 March

2021, taking into account additional information 1 to 4. [10]

3. Prepare the relevant accounts (including the closing entries) for the year ended 31 March 2021 for the changes took place in motor vehicles. [13]