exercising 2 : ADJUSTMENTS TO FINAL ACCOUNTS

showing the step by step and explain the answer

J.Wright, a sole trader, extracted the following trial balance from his books at the close of business on 31 Mar 2020.

			Dr		Cr
			RM		RM
Purchases and Sales			61,420		127,245
Inventory 1 Apr 2019			7,940
Capital 1 Apr 2019					25,200
Bank overdraft					2,490
Cash			140
Discounts			2,480		62
Return inwards			3,486
Return outwards					1,356
Carriage outwards			3,210
Rent and insurance			8,870
Provision for doubtful debts					630
Furniture and fittings			1,900
Motor Vehicle			5,600
Debtors and Creditors			12,418		11,400
Drawings			21,400
Wages and salaries			39,200
General office expenses			319
			168,383		168,383

Notes:

1. Inventory 31 Mar 2020 RM6,805.
2. Wages and salaries accrued at 31 Mar 2019 RM3,500; office expenses owing RM16.
3. Rent prepaid 31 Mar 2020 RM600.
4. Increase the provision for doubtful debts by RM110 to RM740.
5. Provide for depreciation as follows: Furniture and fittings RM190; Motor vehicle RM1,400.

Prepare the income statements for the year ended 31 Mar 2020 together with a statement of financial position as at that date.