1 The following Trial Balance was extracted from the books of Mawar Merah Sdn. Bhd. as at December 2021. Debit RM Credit RM Purchased and sales 350,000 565,000 Returns inwards and returns outwards 5,000 3,300 Transportation expenses 14,500 Account receivables and account payables 68,000 45,000 Fixtures and fittings 51,000 Land and building 500,000 Motor vehicles 300,000 Accumulated depreciation as at 1/1/2021: Fixtures and fittings 21,300 Motor vehicles 108,000 10% loan from Hong Leong Bank 460,000 Duty on purchases 4,400 Utility expenses Insurance Salary and wages 10% fixed deposit (investment) Bad debts General expenses 3,000 15,600 48,000 22,000 5,200 8,400 Cash 14,800 Bank 84,500 Inventory as at 1/1/2021 112,000 Commissions 7,000 12,400 Discount allowed and discount received 5,000 9,300 Interest on loan 2,400 Drawings 8,000 Provision for doubtful debts 4,500 Capital 400,000 1,628,800 1,628,800 Additional information: 1) Inventory as at 31 December 2021 was RM60,000. 2) The owner withdrew closing inventory worth RM3,000 and cash RM2,000 for her personal use. 3) The following expenses are still outstanding as at 31 December 2021: General expenses Utility expenses RM1,200 RM500 4) Included in transportation expenses is carriage inwards amounting to RM2,500. 5) One of the staff was given an advance salary of RM1,000 and no record has been made in the account. 6) One of the debtors owing an amount of RM1,120 was declared bankrupt and the amount has be written off as a bad debt. 7) Depreciation for the year are to be provided as follows: Fixtures and fittings - 10% on the cost (straight-line method) Motor vehicles-20% on net book value (reducing balance method) 8) Provision for doubtful debts is estimated at 5% of the total outstanding accounts receivables. 9) During the year, the owner contributed additional RM20,000 cash. Required: a) Prepare the Income Statement or Statement of Profit or Loss for the year ended 31 December 2021. (15 marks)