(a) Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2020 and Prepare a Statement of Financial Position as at 31st December 2020.

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Question 6 The following trial balance for Care Enterprise has been prepared for the year ended 31st December, 2020. Trial Balance as at 31st December 2020 Debit Credit Accounts (RM) (RM) 380,000 Sales Purchases 220,000 Sales return 2,000 Purchases return 2,700 Carriage Inwards 3,000 Discount received 4,000 Inventory as at 1st Jan 2020 10,000 Allowance for doubtful debts 5,000 Wages and salaries 25,000 Rent expenses 16,000 Takaful insurance 4,900 Carriage outwards 3,990 Office expenses and utilities 3,500 5,200 Maintenance expenses Supplies and stationeries 3,000 50,000 Printing equipment Accumulated Depreciation - printing equipment 10,000 Motor vehicle 92,000 Accumulated Depreciation - motor vehicle 18,000 Accounts receivable 27,000 20,000 Accounts payable Capital Cash & Bank balance 40,000 35,700 Commission received 2,790 6,200 Drawings Bank borrowings 25,000 Total 507,490 507,490 The following additional information has to be considered. i. Inventories at 31st December 2020 were valued at RM18,500. The current market value of inventory is at RM25,500. ii. The owner took cash RM2,000 for his personal use. iii. Salary expenses accrued amounting to RM9,000. iv. Rent was paid in advance amounting to RM4,000 for the following year. v. Utilities for month of December amounting to RM1,800 was not paid. vi. Depreciation is provided on the following basis . Motor vehicle - straight line basis at 20% per annum. Printing equipment - reducing balance method at 20% per annum vii. The Allowance for doubtful debts is to be provided at 4% of net account receivables. viii. Commission income amounting to RM3,000 has not been received