Question 1 (A) Tommy, a retail shop owner, did not keep proper books on the double entry system. However, he is able to provide you the following valuation of his assets and liabilities on the dates below: Furniture and fittings (Book value) Office Equipment (Cosi) Trade receivables Trade payables Inventories Cash and bank Insurance not yet paid Loan 1 Jun 2020 RM 12,000 27,000 2,700 4,200 4,800 5,300 31 May 2021 RM 10,000 To compute 4,300 2,400 7920 8.100 800 22,000 15,000 Additional information for the year ended 31 May 2021 is as follows: 1. During the year, goods RM400 per month were withdrawn by Tommy and cash of RM1,300 was paid to TARUC as his son's tuition fees. 2. Utility bill of RM600 for May 2021 has not yet been paid. 3. Rental paid in advance amounted to RM900. 4. Tommy brought in a computer of RM3,000 from his house to the business on 1 December 2020 5. Office equipment is subject to a charge of depreciation at 10% per annum on cost. 6.6% allowance for doubtful debts is to be created. Required: (a) Prepare a statement to compute the opening and closing capital (25 marks) (b) Prepare a statement to ascertain the profit or loss for the year ended 31 May 2021. (10 marks) (B) (a) Mr Tan, who is an old man who runs an old grocery store near his house. He recently approached you to help him calculate his profits, but he informed you that he only has his opening capital and closing capital figures. What method should you use to compute his profit and give 1 reason why that method was selected. (6 marks) (b) Give 3 situations where incomplete record problem may occur in a company. (9 marks) [50 marks]