Question 1 (a) The following transactions occurred during year 2019 and 2020 for Kline Fashions: Year 2019 Kline had a total sale of RM1,200,000 of which 80% was for credit Jan 1 - Dec 31 sales. Bad debts written off for the year was RM40,000. Total cash collected from credit sales was RM540,000. Kline decided to create a provision for doubtful debts at 5% of remaining debtors balance. Year 2020 Donako, a debtor, was declared a bankrupt and Kline decided to Jan 1 - Dec 31 write off his debt of RM5,000 as irrecoverable debts. Total Credit sales for the year was RM1,300,000 of which 80% was collected from the debtors. Cash discount of RM4,500 was given to customers for prompt payment. Kline decided to decrease the provision for doubtful debts to 2% of debtors closing balance. Required: Prepare the ledger entries for Debtors and Provision for doubtful debts account for the year ended 31 December 2019 and 2020. (14 marks) (b) What are capital expenditure and revenue expenditure and why is it important to differentiate them? (5 marks) (c) Indicate whether each of the following costs would be treated as capital or revenue expenditure: 1) Painting of Motor Vehicle ii) Insurance on transit of inventory Yearly maintenance cost iv) Legal charges on purchase of property Fire insurance on property vi) Architect charges for building plan (6 marks) (Total 25 marks)