10. The following are the financial statements of Orchid Palace: Orchid Palace Statement of Comprehensive Income for the year ended 31 December 2015 Opening Inventory Add Purchases Add Transportation Inwards Less Purchases Returns Cost of Goods Available for Sale Less Closing Inventory Cost of Goods Sold RM RM 550,000 Sales* 1,300,000 Less Sales Returns 100,000 80,000 1,320,000 1,870,000 380,700 1,489,300 RM 2,500,600 35,000 Gross Profit c/d 976,300 2,465,600 2,465,600 Salesmen's Salaries Distribution Expenses 160,000 Gross Profit b/d 128,000 Net Loss 976,300 48,700 Electricity and Water 20,000 Administrative Expense 97,000 Depreciation of Equipment 25,000 Depreciation of Land & Buildings 50,000 Marketing Expenses 85,000 This Consultancy Expenses 100,000 Salaries and Wages Expense 350,000 Net Operating Expenses Interest Expenses *All sales were on credit basis. Orchid Palace Statement of Financial Position as at 31 December 2015 1,015,000 10,000 1,025,000 1,025,000 1,025,000 RM RM RM RM Non-current Assets Owner's Equity Land & Buildings 1,700,000 Capital, beginning 1,300,000 Less Provision for Less Net loss 48,700 Depreciation 380,000 1,320,000 1,251,300 Office Equipment 850,000 Less Drawings 80,000 Less Provision for Capital, ending 1,171,300 Depreciation 250,000 600,000 1,920,000 Long-term Liabilities Current Assets Bank Loan 1,000,000 Inventory 380,700 Accounts Receivable 360,000 Ledge Current Liabilities Bank & Cash 219,600 960,300 Accounts Payable 709,000 2,880,300 2,880,300