A (Compulsory) - Question 1 (Total: 35 marks) The trial balance of Rosket Bhd. as at 30 September 2020 is given below. Note Dr RM'000 Cr RM'000 Administrative expenses 8,000 Cost of sales Finance cost 71,500 Distribution costs 5,400 100 Self-constructed property 1 13,200 Ordinary dividends paid 2,500 Plant and equipment at cost 2 30,000 Revenue 107,500 Brand at cost 3 10,000 Brand - accumulated amortisation at 1 October 2019 4,000 Plant and equipment - accumulated depreciation at 1 October 2019 10,500 Bank 3,500 Inventory at 30 September 2020 7,500 Suspense account 3,000 Ordinary shares 5 22,200 Provision for doubtful debts 500 Retained earnings at 1 October 2019 11,000 Trade payables 8,350 Trade receivables 4 15,500 Tax payable at 1 October 2019 6 150 167,200 167,200 Additional information: (1) Self-constructed property Rosket Bhd began the construction of a property on 1 October 2018 which was completed and ready for its intended use on 30 June 2020. The total cost of the self-constructed property include the following: RM'000 Construction cost 12,000 Interest expenses capitalised (1 October 2018 - 30 September 2019) Interest expenses capitalised (1 October 2019 - 30 September 2020) 600 600 13,200 Page 1 of 7 On completion, the property has a useful life of 25 years. Depreciation is charged on a pro rata basis. Depreciation of self-constructed property is charged to the cost of sales. (2) Plant and equipment Plant and equipment is depreciated at 20% per annum using the reducing balance method. Depreciation of plant and machinery is charged to the cost of sales. (3) Brand The brand was acquired on 1 October 2017 and had a useful life of 5 years on that date. On 1 July 2020 Rosket Bhd carried out an impairment review of the brand. The review indicated that the brand had a value in use of RM3.5 million and a revised remaining useful life of 2 years. On the same day as the review results were given to the directors, Rosket Bhd received an offer of RM4 million from Wason Bhd to purchase the brand. Amortisation of the brand is charged to the cost of sales. (4) The accountant reviewed the trade receivables of RM15.5 million and decided that specific debts totalling RM500,000 were to be written off as the cash was considered to be irrecoverable, and the allowance for receivables was to be adjusted to the equivalent of 2% of the trade receivables. The debts written off is charged to administrative expenses. (5) On 1 February 2020, Rosket Bhd issued 3 million shares at RM1 each. The proceeds were credited to the suspense account. (6) The provision for income tax for the year is estimated at RM2 million. Provision for taxation in 2019 was overestimated by RM100,000. Rosket Bhd has not recognised this amount in 2020. (7) Round your answers to the nearest ringgit. Required: (a) Prepare an adjusted trial balance as at 30 September 2020. The format of the adjusted trial balance is as follows: Unadjusted Account Trial Balance Adjusting Entries Description Dr Cr Dr Cr Adjusted Trial Balance Dr Cr RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Distribution 5,400 5,400 costs (Note: Show all relevant workings) Page 2 of 7 (25 marks) (b) Prepare the following statements for AIF Bhd. in accordance with the requirements of IAS 1/ MFRS 101. (i) A statement of Profit or Loss and Other Comprehensive Income for the year ended 30 September 2020. (3 marks) (ii) A Statement of Changes in Equity for the year to 30 September 2020. (2.5 marks) (iii) A Statement of Financial Position as at 30 September 2020. (4.5 marks) [Total: 35 marks]