Additional information:

Closing inventory as of $31$ December $2023$ was RM$42,000.$

The owner took goods worth RM$600$ and cash amounting to RM$1,200$ from the business for

personal use,

The owner decided to write off additional bad debts of RM$4,500$ when she discovered one

of the accounts receivables was in financial difficulties.

Provision for doubtful debts is to be made at $5\%$ on the outstanding accounts receivable.

It is the company's policy to depreciate its non$-$current assets as follows:

i$.$ Plant and machinery $-20\%$ on reducing balance method.

ii$.$ Motor vehicles $-10\%$ on straight line method.

iii. Office equipment $-10\%$ on straight line method.

The electricity bill of RM$500$ was still accrued for the period.

Advertising expenses amounting to RM$1,500$ was still owing.

The rental income is worth RM$1,000$ per month.

Salaries paid in advance amounted to RM$2,500.$

Required:

$($a$)$ Prepare Statement of Comprehensive Income of Joy Trading for the year ended $31$

December $2023.$

$($b$)$ Prepare Statement of Financial Position of Joy Trading as at $31$ December $2023.$

$[15$ marks$]$

$($c$)$ List TWO $(2)$ possible circumstances that might lead a company to write$-$off a debt as a

bad debt.QUESTION $1[35$ MARKS$]$

The following accounts balances were extracted from the book of Joy Trading for the year ended

$31$ December $2023.$