XYZ Berhad Trial Balance as at 31 December 2021 Stock at 31 December 2021 RM 200,000 RM Bank Prepaid expenses Accrued expenses Account Receivable Account Payable 280,000 45,000 150,000 300,000 350,000 Gross profit 720,000 Administrative expenses 200,000 Selling and distribution expenses 112.500 Financial charges 25,000 Debenture interest 10,000 Interim dividend for preference share 12,500 Tax paid for the year 75,000 Provision for doubtful debt 10,000 Loan 30,000 Freehold property at cost 1,300,000 Plant and machinery at cost 900,000 Accumulated depreciation at 1 January 2021 - Freehold property 100,000 Plant and machinery 330,000 10% Debentures 200,000 Share premium 50,000 Issued and fully paid capital - Ordinary share of RM1 each 500,000 General reserves -5% Preference share of RM2 each Retained profit at 1 January 2021 500,000 100,000 200,000 3,460,000 3,460,000 Additional information: 1. Authorized capital consists of: 2. 3. 4. 5. 6. +56 1,000,000 Ordinary shares of RM1 each 500,000 5% Preference shares of RM2 each RM1,000,000 RM1,000,000 Plant and machinery are depreciated at 20% on reducing balance method. Freehold property is estimated to have 50 years useful life. Depreciation on freehold property is using straight line method. Provisions are to be made for second half year's debentures interest. Provision for doubtful debt is to be increased by RM2,000. During the Annual General Meeting the board of directors has proposed to declare a final dividend on the Ordinary shares of 10% dividend. The director also decided to transfer RM50,000 to the general reserves.