(b) State the amount of income and expense that should be recorded by Shafi Sdn Bhd in the year ended 31 March 2021 for each item below. Justify your answer by reference to the Entity Concept.

1) On 31 March 2021, the owner, Mr. Shafi pays RM2500 for utilities expense. 10 percent of the total utilities expense was used in Mr. Shafis house. (3 marks)

2) On 1 March 2021, Mr. Shafi received RM2,000 Interest income from Bank, the Interest was earned from his personal saving which he invested in a bank on March 1, 2020. (3 marks)

3) On 15^th March 2021, RM6,000 one year insurance was paid in advance. On 31 March 2021, it was identified that 15% of the insurance was paid for Mr Shafi personal house. (3 marks)

(c) If total debits equal total credits on the trial balance, is the trial balance error-free? Support your answer with two examples. (4 marks)

Note: Please do it in MS Word