1. Prepare a Statement of Financial Position.
2. Prepare an Income Statement.

Additional information: 1. Inventory as at 31 December 208 was RM75,000 2. Include in carriage expenses is carriage outwards amounting to RM2,200. 3. One of the debtors owing an amount of RM1,500 was declared bankrupt and the amount has to be written off as bad debt. 4. Allowance for doubtful debts has to be increased by RM4,500. 5. Depreciation for the year is to be provided as follows: Office equipment - 10% per annum straight-line method, yearly basis. Motor vehicles - 20% per annum on carrying value method, yearly basis 6. During the year, the owner contributes additional RM20,000 into the buiness's bank account. 7. The owner gives goods worth RM2,700 to his cousin and took cash RM1,500 for the repair and maintenance of personal motor vehicles. 8. Fixed Deposit was invested on 1 July 208. The half-year interest revenue was not yet received. 9. One of the employees was given an advance salary of RM700 and no record has been made into the account. 10. The following expenses are still outstanding as at 31 December 208 : General Expenses RM720