Other information: 1) Inventories as at 31 December 2020 was RM15,000. 2) The company management decided to write off further bad debts of RM2,000. Provision for doubtful debts is at 5% of Trade Receivables amount. 3) The bank loan carries an Interest rate of 8% per annum. It is the company policy to pay interest charges at the end of every year. 4) Accrued Expenses: Legal Fees RM3,000, Directors' Remunerations RM15,000, Maintenance RM4,000 and Audit Expenses RM3,000. 5) Prepaid Expenses: Stationeries RM2,000 and Marketing Expenses RM1,000. 6) Depreciation charges are at 5% on cost per annum of all depreciable non-current assets. 7) Interest of RM5,000 is yet to be received from the bank. 8) On 31 December 2020, ABSB bought below- mentioned items in which the transactions were not recorded. i) Investment in shares of RM30,000 through cash. ii) Motor Vehicle through 100% Hire Purchase Loan. The motor vehicle was valued at RM100,000 Required: (a) Prepare ABSB's Statement of Profit or Loss (post adjustments) for the year ended 31 December 2020 (20 marks) (b) Prepare ABSB's Statement of Financial Position (post adjustments) as at 31 December 2020. (20 marks) (Total: 40 Marks) QUESTION 1 The trial balance of Abad Baru Sdn Bhd (ABSB) as at 31 December 2020 is listed as follows: Abad Baru Sdn Bhd Trial Balance as at 31 December 2020 Debit Credit RM RM 82,000 740,000 25,000 Descriptions Bank Trade Receivables and Payables Purchases and Sales Purchase and Sales Return Land Plant and Machinery (P&M) Furniture and Fitting (F&F) Inventories Bad debts Salaries Import Duties Carriage Inwards Stationeries Marketing Expenses Maintenance Expenses Carriage Outwards Prepaid Insurance Charges Utilities Expenses Administrative Expenses Sales Investment Incomes Provision for Doubtful Debts Accumulated Depreciation: P&M F&F Bank Loan Shareholders Capital 130,400 112,000 432,000 20,000 500,000 120,000 20,000 10,000 8,000 52,000 7,000 9,500 7.000 11,000 20,000 28.000 3,600 7.000 16,500 5,000 5.000 6,000 1,000 100,000 550,000 1,514,000 1,514,000