1. Advise Mr Alex whether he has any action against Produksi Jitu Sdn Bhd.2. Identify a remedy that will be available to Mr Alex. Produksi Jitu Sdn Bhd produced a Malay film called 'Legenda Ratu Hijau: PuteriSaadong'. Mr Alex a cinema owner at Sungai Petani, negotiated with Produksi Jitu Sdn Bhd,regarding the rights to show that film for four weeks at RM500,000. Produksi Jitu’s ManagingDirector Mr Shahbani said the film was a real bargain with an extraordinary new visualexperience since the film uses 3D-HD photography. Mr Shahbani showed Mr Alex a report thatestimated the average takings of the film when shown at cinema in Shah Alam. Mr Alex read thereport. It stated on average the film will make approximately RM600,000 per week. Mr Alexthought he might send his accountant to look at the accounts to verify the report, but decided notto. Mr Alex was impressed with what Mr Shahbani had said and in any event, he wanted to bethe first cinema in his town to show 3D-HD film. Mr Alex purchase the rights to show the film atRM500,000. It turned out to be disaster. The photography was ordinary. At the time of released,three other 3D-HD films were released at the competitors' cinemas. Mr Alex made onlyRM100,000 per week over the four-week period. Later, Mr Alex got to know that the reportshown to him, had been prepared by Mr Shahbani’s trainee accountant Dania. Dania got thefigures wrong and the report should read the film will make approxiamately RM50,000 perwęek,

It is the misrepresentation of figures and data. Along with quality of film.

Answered: Advise Mr Alex whether he has any…

Advise Mr Alex whether he has any action against Produksi Jitu Sdn Bhd. 2. Identify a remedy that will be available to Mr Alex.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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