Analyse the above information and prepare the Statement of Financial Position of AH Pte Ltd as at 31 December 2018. Describe the main differences between accrual method and the cash method of accounting. Explain which method provides a more accurate picture of the profitability of a business.

(b) You have just completed the adjusted trial balance of AH Pte Ltd. The adjusted trial balance of AH Pte Ltd follows. Credit ($) Account Title Miscellaneous expense Depreciation expense Salary expense Interest expense Cash Trademark Accounts receivable Inventory Premises, at cost Furniture Accumulated depreciation - Furniture Accounts payable Unearned revenue Utilities payable Share capital Retained earnings Sales revenue Debit ($) 23,380 5,000 38,000 3,900 23,500 240,000 15,200 5,000 400,000 80,000 30,000 12,700 12,000 1,300 280,000 47,980 450,000 833,980 833,980