KK Agriculture, a poultry farm based in Sabah has extracted the following balances from its ledger on year-end 31 December 2021.

RM RM

Office equipment 22,800

Purchase 145,000

Return Inward 1,700

Motor expenses 3.980

Return Outward 3,660

Furniture and fittings 32,400

Carriage inward 900

Rent received 7,000

Inventory, 1 January 2022 40,300

Wages and salaries 78.720

Motor vehicles 220,300

Accounts payable 110,330

Telephone bill 1,870

Carriage outward 8,200

Bank 11,860

Accounts receivable 66,130

Commission received 15,270

Rent 48,000

Rates 11,200

Commission paid 2,700

Sales 321,330

Drawings 27,000

Capital ???

Additional information:

1. Inventory at 31 December 2021 Cost- RM48,000; Market value-RM41,200
2. Credit sales have not been recorded amounted to RM11,300.
3. Owners took out some materials amounted to RM3,600 for personal use.

Required:

Prepare an income statement for the year ended 31 December 2021 and statement of financial position as at that date.

(Total=50 marks)