Debit (RM)	Credit RM)
Account receivables/payables	165,520	72,440
Carriage inwards	3,520
Inventory as at 1/1/2019	65,980
Carriage outwards	4,360
Discount allowed/received	2,680	60
Electricity and water	25,100
Loan from Maybank (long-term loan)		80,000
Return inwards/outwards	3,840	3,580
Bank	10,400
Premises	160,000
Motor vehicles	56,000
Furniture and fittings	27,600
Cash	2,160
Accumulated depreciation Motor vehicles		20,160
Accumulated depreciation Furniture and fittings		8,280
Salaries and wages	68,600
Bad debts	2,940
Rent received		7,500
Printing and stationeries	9,400
Drawings	3,560
Insurance expenses	18,200
Purchases/sales	592,380	844,300
Allowance for doubtful debts		5,920
Capital as at 1/1/2019		180,000
	1,222,240	1,222,240

The following information needs to be taken into consideration:

1. Depreciation are to be provided based on the following:

Motor vehicles 20% on book value, yearly basis

Furniture and fittings 10% on cost, yearly basis

2. A portion of the business premise was rented out for RM1,500 per month starting from 1 September 2019.

3. A debtor, Tania was declared a bankrupt in June 2019. The amount owed by him amounting to RM2,720 has not been adjusted yet.

4. A debtor, Azeem paid RM740 cash for his debt which had been written off two years ago.

5. It is the company policy of the firm to provide 5% allowance for doubtful debts on the outstanding account receivables.

6. Maybank approved the loan in July 2019 and charged interest at the rate of 8% per annum.

7. The amount of insurance premium paid is for a coverage period of 13months starting from August 2019.

8. The expenses below are still outstanding as at year end:

Salaries and wages RM4,690

Electricity and water RM 710

9. The owner had consumed some goods worth RM12,680 and withdrew cash RM1,000 for personal use.

10. Inventory as at 31 December 2019 was RM69,900.

Required:

1. Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019.

(28 marks)

2. Prepare a Statement of Financial Position as at 31 December 2019.

(12 marks)