Montee Bhd’s list of balances extracted from the General Ledger from the current financial period.

Debit	Credit
25 million Ordinary Shares Capital	50,000,000
5 million 6% Preference Shares	5,000,000
6% Debenture	5,700,000
General Reserve	8,300,000
Retained Profits, beginning of year	17,800,000
Development Costs; qualify as intangible	4,600,000
Property [Land RM10 million; Building RM80 million]	90,000,000
Plant and Machinery	3,097,000
Accumulated Depreciation, beginning of year
Buildings	10,500,000
Plant and machinery	1,350,960
Account Receivable and Account Payable	1,070,000	1,553,000
Allowance for Doubtful Debt	21,400
Quoted Investment – 2 million ordinary shares of Saras Bhd	2,640,000
Sales	97,000,000
Sales return and allowance	25,600
Purchase return and allowance	18,200
Purchases	38,200,500
Inventories, beginning of year	12,000,000
Bank	32,500,120
Tax Paid	11,937,160
Interim Preference Dividend paid	100,000
Insurance	54,000
Advertising and Promotional Expenses	225,000
Salesmen's Commission	150,000
Directors' Remuneration	450,000
Auditors Fee	23,600
Income From Investment – Dividend from Saras Bhd	264,000
Office Salaries	560,000
Utilities Expenses	48,000
Rentals	15,800	189,220

Additional information:
Financial accounting period ended	30/9/2019
Ending Inventory was valued at	17 million
Tax Expense assessed	RM13 million
During the year a disposal of plant with a carrying value of RM150,000 (original cost of RM220,000). No adjustment has been made.	Gain RM3k
The company policy on depreciation is based on annual basis and the rates are as follows:
Building; straight line 5%
Plant and Machinery; reducing balance 20%
The 6% debenture was issued at 1 January 2019 at discount of 5%.
A transfer was made to the Retained Profit	60k
An advance rental of building amounting was received. This represents rental for the first 2 months of the next year	RM4k
The allowance for doubtful debt was maintained at …...	1.80%
The final dividend was proposed by the board of directors for the remaining preference shares dividend
Proposed final dividend for the ordinary shares. All the new shares issued during the year are not entitled for the final dividend.	6 sen
Transaction not yet recorded	Offered 3 million 6% preference shares at RM2.50 per share; these were oversubscribed by 500,000 shares

Answer the following questions:

a. Prepare the adjusting journal entries and update the effected accounts

b. Prepare the statement of profit or loss for the internal purpose; showing a clear separation of cost by function.

c. Based on item (a) prepare the financial statement suitable for publication in according with the relevant MFRSs and Companies Act 2016.

Note1: Statement of cash flows is NOT required

Note2: Working for the classification of costs is NOT required

d. Prepare the relevant notes based on the availability of information provided (at least 5 notes)

Answer rating: 100% (QA)

Answer a Answer b Answer C Working PnL Grouping Allowance for Doubtful Debts Account Receivable 1070... View the full answer