Answer All Questions (Total 100 marks) Question 1 The trial balance of a sole trader, R&B Company, is summarized on 31 December 2020 as below: Debit (S) Credit (S) Capital 40,000 Motor vehicles 104,000 Accumulated depreciation Motor vehicles 20,800 Allowance for doubtful debts, at 1 January 2020 700 Cash at bank 50,520 Cash in hand 4,600 Trade receivables and payables 290,000 76,400 Commission received 2,000 Inventory as at 1 January 2020 1 60,600 Sales 763,780 Purchases 160,000 Carriage inwards 2,600 Carriage outwards 6,200 Discounts allowed and received 4,500 3,700 Rent and rates 78,000 Electricity and water 5,200 Motor vehicle expenses 6,400 Bank charges Drawings Other expenses 2,500 1,000 5,700 Salaries and wages Returns inwards and outwards 120,000 16,000 10,440 917,820 917,820 The following additional information as at 31 December 2020 is available: a) Closing inventory was valued at $47,000. b) Electricity and water of S$1,000 is to be accrued c) Allowance for doubtful debts to be adjusted to $1,000. d) Rent and rates included prepayment of $6,000. c) 10% depreciation rate per year is to be provided on motor vehicles using straight line method. Required: Prepare, in VERTICAL form for R&B Company, a) A Statement of Comprehensive Income for the year ended 31 December 2020 and b) A Statement of Financial Position as at 31 December 2020. 22 of 2