a. Prepare the Statement of Profit or Loss for the year ended 31 December 2020.

b. Prepare the Statement of Financial Position as at 31 December 2020.

Additional information:

1. Inventories as at 31 December 2020 amounted to RM19,400.

2. Provide for depreciation as follows:/5 i. Plant and Machinery 10% on straight line method ii. Motor vehicles 10% on reducing balance method iii. Fixtures and fittings 5% on straight line method

3. Rent not yet received RM1,000.

4. Insurance worth RM4,000 has not been used.

5. Allowance for doubtful debts has to be provided; 6% of Account Receivables.

6. The electricity bill for the month of December 2020 amounting to RM360 was not yet paid. 7. The owner took cash out of the bank to the value of RM1,600 for his personal use.

QUESTION 3 (30 MARKS) Encik Danial is the owner of Good Wheel Enterprise. The following is the trial balance of Good Wheels Enterprise as at 31 December 2020: Debit Credit (RM) (RM) Land 70.000 Motor vehicles 24,000 Accumulated depreciation on motor vehicles 8,000 Fixtures and fittings 30.000 - Accumulated depreciation on fixtures and fittings 14,800 Plant and machinery 240,000 Accumulated depreciation on plant and machinery 64,000 Salary and wages 30,000 Inventories as at 1 January 2020 29,000 Purchases 65,000 Capital 230,200 Sales 193,600 Rent received 1,200 Insurance 9,000 Motor expenses 6.000 Bad debts 6,600 Allowance for doubtful debts 800 Loan from Bank of AlRajhi 60,000 Account Receivables 18,000 Account Payables 7,600 Cash at bank 39.600 Interest on loan 3,000 Drawings 5,400 Office supplies 3.600 Freight charges 3.000 Water and electricity 1.200 Carriage outwards 4.000 Carriage inwards 1.000 Discount allowed 1,400 Discount received 7,200 Commission received 2,400 589.800 589,800