The following trial balance relates to Caya Bhd at 31 March 2021:

	Note	Dr. RM'000	Cr RM'000
Ordinary shares of RM0.50 each			2,450
Retained earnings at 1 April 2020			280
6% convertible loan note	(i)		6,000
Land - at cost1 April 2020	(ii)	5,000
Building - at cost1 April 2020	(ii)	10,000
Other property, plant, and equipment	(ii)	2,500
Accumulated depreciation - 1 April2020
- Building			2,000
- Other property, plantand equipment			1,250
Current tax	(iii)		160
Deferred tax	(iii)		520
Inventory - 4 April2021	(iv)	7,200
Trade receivables		4,820
Bank		2,420
Trade payables			4,900
Revenue			67,930
Cost of sales	(iv)	41,550
Distribution costs		5,500
Administrative expenses		6,140
Loan interest paid	(i)	360
		85,490	85,490

Additional information:

1. Caya Bhd issued a 6% RM6 million convertible loan note on 1 April 2020 at par. Interest is payable in arrears on 31 March each year. The loan note is redeemable at par on 31 March 2023 or convertible into equity shares at the option of the loan note holders on the basis of 30 equity shares for each RM100 of the loan note. The interest on an equivalent loan note without the conversion rights would be 8%.

The present value of interest payable at the end of each year based on discount rates of 6% and 8% are as follows

	6%	8%
	RM'000	RM'000
End of year 1	338	335
End of year 2	320	310
End of year 3	302	284

The present value of the loan note redeemable on 31 March 2023 using the following applicable discount rates is:

	6%	8%
	RM'000	RM'000
End of year 3	5,040	4,740

1. Caya Bhd revalued its property on 1 April 2020. The market value of the property on 1 April 2020 was:

	RM'000
Land	6,000
Building	10,000

At this date, the remaining estimated life of the property was 20 years. Caya Bhd does not transfer to retained earnings in respect of excess depreciation on the revaluation of its assets. Ignore deferred tax on the revaluation. Depreciation on the building is charged to the cost of sales.

Depreciation on other property, plant and equipment of RM250,000 for the year ended 31 March 2021 is charged to the administrative expenses.

1. The financial controller has estimated the provision for income tax for the year ended 31 March 2021 at RM3.88million. Current tax represents the over-provision of the tax liability for the year ended 31 March 2020. At 31 March 2021, Caya Bhd had taxable temporary differences of RM5.4 million requiring a deferred tax liability. Caya Bhd's rate of income tax is 25%.

1. Caya Bhd conducted the physical inventory count on 4 April 2021. At this date the value of inventory at cost was RM7.2 million and this figure has been used in the cost of sales calculation in the trial balance. Between the year-end of 31 March, 2021 and 4 April 2021, the movement of inventories is as follows:

RM'000

Received delivery of goods at a cost of 540

Sales of inventories at a mark-upon cost of 30% 1,560

Neither the goods delivered nor the sales made in this period were included in Caya Bhd's purchases (as part of the cost of sales) or revenue in the above trial balance.

1. Your answers and workings should be presented to the nearestRM000.

Required:

1. Prepare an adjusted trial balance as at 31 March 2021. The format of the adjusted trial balance is as follows:

Account Description	Unadjusted Trial Balance		Adjusting Entries		Adjusted TrialBalance
	Dr RM'000	Cr RM'000	Dr RM'000	Cr RM'000	Dr RM'000	Cr RM'000
Ordinary shares of RM0.50 each	2,450				2,450

(Note: Show all relevant workings)

1. Prepare the following statement for Caya Bhd. in accordance with the requirements of IAS 1/ MFRS 101.

1. A statement of Profit or Loss and Other Comprehensive Income for the year ended31 March 2021.

1. A Statement of Changes in Equity for the year to 31 March 2021.

1. A Statement of Financial position at 31 March 2021.

Answer rating: 100% (QA)

Account Description Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Dr Cr Dr Cr Dr Cr Ordinary shares 2450 2450 Retained Earnings 28... View the full answer