As at 31 December 2022, the following additional information is available: 1) Closing inventories as at 31 December 2022 were RM34,650.

2) Depreciation is to be provided at the following rates: Furniture:10% on reducing balance method Motor vehicles: 15% on cost

3) Additional bad debts of RM470 are to be written off and the provision for doubtful debts is to be set at 2% on the balance of trade receivables at year-end.

4) Adjustments are as follows: The yearly rental is RM6,000. The salary expenses is RM900 per month. Accrued utilities is RM130.

Required:

a) Prepare AME's Income Statement for the year ended (post adjustments) for the year ended 31 December 2022. (10 marks) b) Prepare AME's Statement of Financial Position (post adjustments) as at 31 December 2022. (10 marks)

There are FOUR (4) questions in this question paper. Answer ALL questions in the exam booklet. (50 MARKS) Question 1 The following balances were extracted from the books of Ali Maju Enterprise (AME), a sole trader on 31 December 2022