prepare for Meng Kong

a) an income statement for the year ended 31st december

b) A Balance sheet as at 31st December 2018

Question 1 Meng Kong, a sole trader extracted the following trial balance from his books at the close of business on 31" December 2018 RM RM 285,710 18,290 890 Cash in hand Purchases and sales Accounts receivable and Accounts payable Drawings Sales returns and purchases returns Premises Equipment Inventory (at 01.01.2018) Bank charges Wages and salaries Rates, insurance, electricity Vehicle expenses Telephone, stationery and postage Bad debts Sundry expenses Bank balance Capital (at 31.12.2017) 600 118,540 37,540 12,000 1,350 75,000 14,400 29,600 2,200 78,310 19,840 16,960 4,750 400 3,820 13,800 96,620 415,310 415.310 Closing inventory as at 31 December 2018 is RM 31.500