****PLEASE ANSWER THE QUESTION BRIEFLY, THANK YOUU *ASAP*

QUESTION 2 The following trial balance was extracted from the books of Hermas Trading as at 31 December 2020. Particulars Debit (RM) Credit (RM) 298,000 250,000 16,500 2,500 11,000 4,550 9,000 2,300 36,000 20,500 5,600 1,000 300 11,700 800 Sales Purchases Return outwards Return inwards Discounts Carriage expenses Duty on purchases Inventory as at 1 January 2020 Salary expenses Advertisement expenses General expenses Stationary Utilities expenses Interest on loan Rental received Commission received Allowance for doubtful debt 1 January 2020 3% loan from Bank Rahmat Accounts payable Accounts receivable Furniture and Fittings Motor vehicles Machinery Investment Accumulated depreciation as at 1 January 2020: Motor vehicles Machinery Cash in hand Cash at bank Drawings Capital Insurance expenses Repairs and maintenance Patents 3,000 4,000 1,500 50,000 23,000 22,500 60,000 95,000 60,000 83,000 22,500 12,000 10,950 20,200 5,000 296,000 2,500 4,500 12,600 729,000 729,000 Additional information: 1. Inventory as at 31 December 2020 was valued at RM22,000. 2. The bank loan was approved on January 2020 and part of the interest on loan was still outstanding as at 31 December 2020. 3. One of the credit customers owing RM800 was declared bankrupt and the debt needs to be written off. Allowance for doubtful debt is to be adjusted to 2% on the remaining accounts receivable. 4. Depreciations for the year are to be provided as follows: Motor vehicles -20% per annum on cost, yearly basis Furniture and Fittings -15% per annum on cost, yearly basis Machinery -10% per annum on carrying amount, yearly basis 5. During the year, the owner took goods worth RM700 for his personal use. 6. The following were prepayments as at 31 December 2020: Prepaid salary expenses RM6,500 Prepaid commission received RM2,000 7. Utilities bill for the month of December 2020 of RM250 was not yet paid. Required: a. The Statement of Profit or Loss for the year ended 31 December 2020. (18 marks) b. The Statement of Financial Position as at 31 December 2020. (12 marks) Note 1: Use vertical format presentation for both statements and show all calculations. Note 2: Calculate to the nearest RM. (Total: 30 marks)