The following list of account balances relates to Sentosa Berhad at 30 June 2011:

	Debit		Credit
	RM \'000		RM \'000
Ordinary share capital @ RM0.50 each			100,000
Retained earnings 1 July 2010			113,000
Purchases	180,000
Account receivables	60,000
Inventories 1 July 2010	35,000
Cash and bank	18,000
Account payables			56,000
Sales			350,000
Dividends paid	7,000
Debenture interest	2,000
General administration expenses	30,000
General selling and distribution expenses	22,000
Revaluation reserve			24,000
Research costs	8,000
10% Debentures			50,000
Deferred taxation			9,000
Land	100,000
Building	250,000
Plant and machinery	60,000
Proceed from disposal of land			25,000
Accumulated depreciation:
-Building			25,000
-Plant and machinery			20,000
	772,000		772,000

1. 
   
2. Inventories at 30 June 2011 were valued at cost of RM30 million.
3. On 1 July 2010, a piece of land costing RM5 million but revalued in the books to RM11 million some years ago was sold for RM25 million.
4. On 25 June 2011, the accountant discovered a computational error in the total credit purchases figure for the year ended 30 June 2011, which resulted in an understatement of RM3 million. This error had not been corrected in the books.
5. Tax expense estimated for the year is RM36 million, this amount did not include an increase in deferred tax liability. The deferred tax liability was determined to be RM10million as at 30 June 2011
6. Sentosa Berhad declared bonus issues of 1 share for every 20 shares held on 30 June 2011 by utilizing its retained earning amount. This transaction has not yet been reflected in the books.
7. It is the company’s policy to provide for depreciation on its assets as follows:

Building: Straight line method at 2% p.a.

Plant & machinery: Reducing balance method at 20% p.a.

Depreciation expense is to be apportioned 60% to administration expenses and the balance to selling & distribution expenses.

Required:

 Prepare for external use, the following financial statements of Sentosa Bhd:

(i)        Statement of Comprehensive Income (classification of expenses by function) for the year ended 30 June 2011.                             

(ii)       Statement of Changes in Equity for the year ended 30 June 2011.

(iii)      Statement of Financial Position as at 30 June 2011.

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Answer rating: 100% (QA)

Sentosa Berhads statement of comprehensive income for year ended 30 June 2011 in RM000 Sales 350000 ... View the full answer