Question 1 Balances of account for Chin Chai Smartshop as at 31 December 2010 are shown below: RM Cash 800 Debtors 5,800 Creditors 9,940 Stocks as at 1 January 2010 5,985 Insurance 360 Office equipment at cost 8,000 Provisions for depreciation for office equipment 800 Import duty 540 Commission received 1,580 Vehicles at cost 12,000 Provisios for depreciation for vehicles 1,200 Return inwards 780 Return outwards 695 Purchases 39,950 Sales 67,575 Bank 13,600 Discount received 420 Discount allowed 485 Salary and wages 3,930 General expenses 425 Rental received 7,800 Vehicles maintenance 1,350 Drawings 675 Bad debts 150 Provision for doubtful debts 225 Shop building 35,000 Maintenance of shop building 300 Capital ? Additional information: 1) Stock as at 31 December valued at RM5,995. 2) Office equipment and vehicles will be depreciated at 10% per annum using reducing balance method. 3) Provisions for doubtful debts were adjusted at 3% on total debtors. 4) Drawings of cash amounting RM420 for personal used has not been recorded in any books of accounts yet. 5) Accrued commission received is RM55. 6) Part of the shop was rental out to third party at agreed rate of RM600 per month. 7) Salary and wages was underpaid for the month of December by RM1,600. Required: a) Calculate the capital amount as at the date. (3 marks) b) Income Statement for the year ended 31 December 2010. (12 marks) c) Balance sheet as at the date. (10 marks) (Total: 25 Marks)