Additional information:

1. The ordinary share capital value of RM100,000.

2. Stock in trade at 31 December 2020, RM29,142.

3. Wages and salaries due at 31 December 2020 amounted to RM581.

4. Rent paid in advance at 31 December 2020 amounted to RM300.

5. A dividend of RM10,000 is proposed for 2020.

6. The provision for doubtful debts us to be increased to RM938.

7. A depreciation charge is to be made on machinery at the rate of 10% per annum on cost.

Required:

(a) Prepare a Statement of Profit or Loss for the year ended 31 December 2020. (13 marks)

(b) Prepare a Statement of Financial Position as at 31 December 2020.

(12 marks)

Q3. Chong Berhad has the following balances on its books as at 31 December 2020: RM RM 100,000 34,280 65,000 55,000 15,800 201,698 316,810 Share capital Profit or loss account 31 December 2019 Freehold premises at cost Machinery at cost Provision for depreciation on machinery account as at 1 January 2020 Purchases Sales General expense Wages and salaries Rent Lighting expenses Bad debts Provision for doubtful debts at 31 December 2019 Debtors Creditors Stock in trade 31 December 2019 Bank Total 32,168 54,207 4,300 1,549 748 861 21,784 17,493 25,689 23,101 485,244 485,244