CONFIDENTIAL/SULIT EBAB 123 Semester 1 2021/2022 QUESTION 2 [25 MARKS] The following is the trial balance of Sendayan Enterprises at 31 August 2021. Debit Credit RM 6,400 RM 5,100 1,500 93,100 1,300 Accounts receivables and account payable Bank Cash in hand Sales and purchases Return inwards and outwards Carriage inwards Carriage outwards Inventories at 1 September 2020 Utilities expenses Salaries Advertisement Insurance Discount allowed and received Bad debts Provision for doubtful debts Heavy machine (cost) Provision for depreciation on heavy machine Equipment Provision for depreciation on equipment Land and building Rental received Long term loan Drawings Royalty received Capital 850 65,000 1,850 250 285 6,800 345 3,600 2,650 800 150 680 650 450 34,000 12,000 6,000 1,200 145,000 360 20,000 2,000 1,000 140,000 276,660 276,660 CONFIDENTIAL/SULIT EBAB 123 Semester 1 2021/2022 The following information needs to be taken into account in the preparation of the final accounts: 1. Closing inventories RM7,150. 2. Rental received in advance amounted to RM60. 3. Provision for doubtful debts is to made at 5% of account receivables. 4. Insurance was prepaid amounted to RM270. 5. Royalty amounted to RM200 has not been received. 6. Utilities bill amounting to RM130 is still owing. 7. Depreciation rate for the fixed assets are as follows: Heavy machine 20% reducing balance method Equipment 10% straight line method Required: a) Prepare a Statement of Profit or Loss for the financial year ended 31 August 2021. [15 marks] b) Prepare a Statement of Financial Position as at 31 August 2021. [10 marks]