Debit Credit RM RM Capital 420,000 Motor Vehicle 200,000 Land and building 250,000 Office Equipment 100,000 Accumulated depreciation: Motor Vehicle 80,000 Office Equipment 10,000 Utilities 15,000 Water and Electricity 11,000 Bad debts 11,500 Allowance for doubtful debts Stock (Opening) 31,000 Discount Received 4,000 Additional information: 1. Closing stock as at 31 December 2021 was RM 40,000. 2. Water and Electricity bills amounting to RM300 still remained unpaid. 3. Interest revenue amounting to RM1, 400 has not yet been received. 4. Out of RM500 in the carriage outward was carriage inward. 5. The owner took RM 1,000 cash from bank account for personal use. 6. Prepaid insurance during the year was equal to RM3,000. 7. Depreciation is to be provided on the following basis: a) Motor vehicles 20% on cost b) Office equipment 10% on net book value (reducing balance method) 8. Provision for doubtful debts is to be provided based on the balance of the accounts receivable at the rate of 4%. You are required: 1,000 a) Record the transactions, as given in the additional information No. 2 until No. 7, in a journal (Note: Narration is required). b) Prepare a statement of profit and loss for the year ended 31 December 2021. Discount Allowed Purchases Sales Cash at bank 3,000 60,000 c) Prepare a statement of financial position as at 31 December 2021. 220,000 47,000 Cash in hand 16,000 Drawings 2,000 Account payable 60,000 Account receivable 21,600 Insurance 13,000 Salaries 35,000 Carriage expenses (outward) 1,400 Rental income 26,700 Import duties 3,000 Advertising Interest revenue Return outwards Return inwards 15,000 13,000 2,000 1,200 836,700 836,700