475 QUESTION 1 The following trial balance was extracted from the books of Peter as at 31 December 2002. Dr (RM) Cr (RM) Capital at 1 January 2002 13.835 Furniture and fittings 16,400 Inventory at 1 January 2002 3.580 Trade receivables and payables 12,600 13,400 Sales 48,650 Purchases 34,600 Returns 120 310 General expenses Expenses on purchases 940 Salaries and wages 12.500 Drawings 600 Bank loan 20,000 Bank 8.750 Interest on loan 2.550 Commission payable 680 Bad debts Premises 18.000 Cash in hand 1,540 Discounts 320 480 105,425 105,425 The closing inventory was valued at RM6.800 You are required to prepare the Income Statement and Balance Sheet as at that date. 520