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  3. 3. the statements of profit or loss for the year e

3. The statements of profit or loss for the year ended 31 March 2020 of...

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Accounting

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3. The statements of profit or loss for the year ended 31 March 2020 of Sun Bhd, Moon Bhd and Cool Bhd are as follows: Statements of Profit or Loss for the year ended 31 March 2020 Sun Moon Cool RM million RM million RM million Revenue 1,050 900 950 Cost of sales (500) (490) (630) Gross profit 550 410 320 Operating expenses (165) (120) (100) Other income 25 15 15 Profit before taxation 410 305 235 Taxation (98) (73) (56) Profit after tax 312 232 179 Relevant information to the group is a follows: i. Investment in Moon Bhd at 70% on 1 July 2016 with consideration paid of RM 700 million. ii. Investment in Cool Bhd at 40% on 1 April 2009 by paying RM100 million. iii. In August 2019, Sun Bhd sold inventories to Moon Bhd for RM90 million. These inventories were sold at a margin of 25%. One-third of these inventories yet sold at the end of the accounting period. iv. Profits were deemed to accrue evenly throughout the year

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