QUESTION 6 (20 MARKS) The following trial balance relates to Global Sdn Bhd at 31 March...

 

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QUESTION 6 (20 MARKS) The following trial balance relates to Global Sdn Bhd at 31 March 2020: RM'000 Revenue Cost of sales Distribution costs Administration expenses Loan note interest and dividend paid (notes iv and v) Bank interest Leased property at cost Plant and equipment at cost (note ii) Accumulated amortisation/depreciation at 1 April 2019: Leased property Plant and equipment Inventories at 31 March 2019 Trade receivables Trade payables Bank Ordinary shares of RM0.25 each (note iii) Retained profit at 1 April 2019 5% convertible loan note (note iv) Current tax (note vi) Deferred tax (note vi) 290,600 33,500 36,800 13,380 900 The following notes are relevant : i. 100,000 155,500 61,000 63,000 3,200 757,880 RM'000 490,000 25,000 43,500 32,200 5,500 81,000 26,080 50,000 4,600 757,880 Revenue includes an amount of RM20m for cash sales made through Global Sdn Bhd's retail outlets during the year on behalf of Orkid. Global, acting as agent, is entitled to a commission of 10% of the selling price of ii. iii. iv. V. vi. these goods. By 31 March 2020, Global had remitted to Orkid RM15m (of the RM20m sales) and recorded this amount in cost of sales. Plant and equipment is depreciated at 12.5% per annum on the reducing balance basis. All amortisation and depreciation of non-current assets is charged to cost of sales. On 1 August 2019, Global made a fully subscribed rights issue of ordinary share based on two new shares at RM0.60 each for every five shares held. The issues has been fully recorded in the trial balance figures. On 1 April 2019, Global issued a 5% RM50m convertible loan note at par. Interest is payable annually in arrears on 31 March each year. The loan note is redeemable at par or convertible into equity shares at the option of the loan note holders on 31 March 2022. The interest on an equivalent loan note without the conversion rights would be 8% per annum. The present values of RM1 receivable at the end of each year, based on discount rates of 5% and 6%, are: End year 1 2 3 5% 0.95 0.91 0.86 8% 0.93 0.86 0.79 An ordinary dividend of RM0.04 per shares was paid on 30 May 2019 and. After the rights issue, a further dividend of RM0.02 per shares was paid on 30 November 2019. The balance on current tax represents the under/ over provision of the tax liability for the year ended 31 March 2019. A provision of RM28m is required for current tax for the year ended 31 March 2020 and at this date the deferred tax liability was assessed at RM8.3m. Required: a) Prepare the statement of profit or loss for Global Sdn Bhd for the year ended 31 March 2020. (8 marks) b) Prepare the statement of financial position for Global Sdn Bhd for the year ended 31 March 2020 (include note to account for Property, plant and equipment). (12 marks) QUESTION 6 (20 MARKS) The following trial balance relates to Global Sdn Bhd at 31 March 2020: RM'000 Revenue Cost of sales Distribution costs Administration expenses Loan note interest and dividend paid (notes iv and v) Bank interest Leased property at cost Plant and equipment at cost (note ii) Accumulated amortisation/depreciation at 1 April 2019: Leased property Plant and equipment Inventories at 31 March 2019 Trade receivables Trade payables Bank Ordinary shares of RM0.25 each (note iii) Retained profit at 1 April 2019 5% convertible loan note (note iv) Current tax (note vi) Deferred tax (note vi) 290,600 33,500 36,800 13,380 900 The following notes are relevant : i. 100,000 155,500 61,000 63,000 3,200 757,880 RM'000 490,000 25,000 43,500 32,200 5,500 81,000 26,080 50,000 4,600 757,880 Revenue includes an amount of RM20m for cash sales made through Global Sdn Bhd's retail outlets during the year on behalf of Orkid. Global, acting as agent, is entitled to a commission of 10% of the selling price of ii. iii. iv. V. vi. these goods. By 31 March 2020, Global had remitted to Orkid RM15m (of the RM20m sales) and recorded this amount in cost of sales. Plant and equipment is depreciated at 12.5% per annum on the reducing balance basis. All amortisation and depreciation of non-current assets is charged to cost of sales. On 1 August 2019, Global made a fully subscribed rights issue of ordinary share based on two new shares at RM0.60 each for every five shares held. The issues has been fully recorded in the trial balance figures. On 1 April 2019, Global issued a 5% RM50m convertible loan note at par. Interest is payable annually in arrears on 31 March each year. The loan note is redeemable at par or convertible into equity shares at the option of the loan note holders on 31 March 2022. The interest on an equivalent loan note without the conversion rights would be 8% per annum. The present values of RM1 receivable at the end of each year, based on discount rates of 5% and 6%, are: End year 1 2 3 5% 0.95 0.91 0.86 8% 0.93 0.86 0.79 An ordinary dividend of RM0.04 per shares was paid on 30 May 2019 and. After the rights issue, a further dividend of RM0.02 per shares was paid on 30 November 2019. The balance on current tax represents the under/ over provision of the tax liability for the year ended 31 March 2019. A provision of RM28m is required for current tax for the year ended 31 March 2020 and at this date the deferred tax liability was assessed at RM8.3m. Required: a) Prepare the statement of profit or loss for Global Sdn Bhd for the year ended 31 March 2020. (8 marks) b) Prepare the statement of financial position for Global Sdn Bhd for the year ended 31 March 2020 (include note to account for Property, plant and equipment). (12 marks)