Fauzan is a sole trader of a sundry shop called Sundry Express Store. He would like to engage you as his junior accountant. Before he recruits you, he has asked you to prepare for him the annual financial statements to assess whether you are qualified for the job. The followings are the shop's trial balance as at 31st December 2014. Debit Credit RM RM Capital 60,000 Drawings 5,600 Purchases/ Sales 34,260 58,640 Returns inwards / Return outwards 3,260 2,140 Carriage inwards 730 Carriage outwards 420 Discount allowed / received 1,480 1,970 Plant and machinery at cost 11,350 Provision for depreciation on plant 4,150 Motor vehicles at cost 13,290 Provision for depreciation on vehicles 2,790 Goodwill 5,000 Quoted investments 6,470 Freehold premises at cost 32,000 Mortgage on premises 10,000 Interest paid / received 1,000 460 Inventories 4,670 Bank and cash 2,850 Salaries 7,180 Rent and rates 4,300 Provision for bad debts 530 Trade receivables / payables 8,070 4,340 Light and heat Stationery Total 2,640 450 145,020 145,020 Additional information: 1. The provision for bad debts is to be adjusted at 10% of trade receivables. 2. At 31st December 2014 there is electricity accrued of RM130 and rates prepaid amounting to RM210. 3. Inventories at 31st December 2014 were valued at RM3,690. 4. During the year the proprietor has taken goods costing RM350 from the business for his own use. 5. Depreciation on plant is 25% on the reducing balance method and on vehicles 20%by the same method. 6. There are bad debts of RM370 that have not been entered in the ledger. Note: It is assumed that the quoted investments are to be held for less than one accounting year. Required: a) Prepare the Statement of Profit or Loss for Sundry Express Stores for the year ended 31 December 2014. (16 marks) b) Prepare the Statement of Financial Position for Sundry Express Stores as at 31 December 2014 (9 marks)