financial accounting 2

The following Trial Balance has been extracted from the accounting records of Jagga, a private company, at 31 December 2020: Debit RM'000 2500 Credit RM000 250 600 1200 130 730 100 40 80 900 Administrative Expenses Bank overdraft 10% Debentures Distribution Costs Dividends Received Long term Investment Furniture & Fittings Cost Acc. Depreciation Interim Ordinary Dividend Ordinary Share Capital Plant & Equipment Cost Acc. Depreciation 10% Preferred share capital Preferred Dividend Retained Earnings at 1 January Provisions for doubtful debts Purchases Sales Share Premium Inventory Trade Payables Trade Receivables 7600 5000 200 20 2320 160 7250 13260 400 2170 990 2600 24250 24250 20 2320 160 7250 Preferred Dividend Retained Earnings at 1 January Provisions for doubtful debts Purchases Sales Share Premium Inventory Trade Payables Trade Receivables 13260 400 2170 990 2600 24250 24250 The following additional information is provided: 1. The inventory at 31 December 2020 was valued at RM 2,500,000. 2. Depreciation is to be charged as follows: Furniture & Fittings (all relating to the administration): 10% on cost. Plant & Equipment (all relating to cost of sales): 50% on the reducing balance basis. 3. The provision for doubtful debts is to be maintained at 8% of trade receivables. 4. Prepayment and accruals at 31 December 2020 were: Prepayments (RM) Accruals (RM) Administrative Expenses 120,000 10,000 Distribution Costs 80,000 30,000 5. Interest on debentures for the year has not yet been paid. 6. The directors propose to pay final dividend of RM 0.20 per ordinary share. 7. The company's authorised share capitals is made up of 1,000,000 ordinary shares of RM 1 each and 250,000, 10% preferred shares of RM 1 each. Required: Prepare Jagga's Statement of Profit & Loss for the year ended 31 December 2020 and Statement of Financial Position as at 31 December 2020