Accounting Policies, Changes in Accounting Estimates & Errors (IAS 8/MFRS 108) Question 1 The following is an extract of the trial balance of Andaman Resort Bhd. as at 28 February 2021: Debit RM'000 Credit RM'000 Sales Cost of sales 4,780 2,150 Tax payable 489 Trade receivables 940 Retained earnings as at 28 February 2020 10,173 At the end of financial year ended 28 February 2021, Andaman Resort Bhd. discovered that goods with a cost of RM171,000, which had been sold during 2020 were incorrectly included in the closing inventory at 28 February 2020 and sales and trade receivables balances were both understated by RM120,000. Assume an income tax rate of 25% for the years ended 28 February 2020 and 28 February 2021. Required: Prepare the extract of financial statements of Andaman Resort Bhd. for the year ended 28 February 2021 showing the effect of the above prior period errors. (6 marks)