QUESTION 1 Maju Jaya Trading extracted the following balances from the business ledgers as at 31 August 2019: Dr Cr RM RM Furniture & Fittings 50,000 Office Equipment 40,000 Accumulated depreciation office equipment 8.000 Motor Vehicles 70,000 Accumulated depreciation: motor vehicles 25,200 Drawings 19.100 Capital 140,000 Loan 25,000 Inventory as at 1 September 2018 29,300 Purchases and Sales 89.100 177.300 Returns 3.800 2.600 Carriage 4.500 Wages and salaries 36,000 Discounts 2,300 1,300 Rent 4.800 Interest 1,800 Insurance 3.600 Utilities 5.000 Bad debts 1.900 3/6 Trade receivables and payables 46,600 31,300 Allowance for doubtful debts 1,500 Bank 11,000 Cash 3,000 417,000 417,000 Additional information: 1. Closing inventory was valued at cost RM26,300 but the market value was RM29,900 2. A quarter of the wages and salaries was paid to warehouse employees. One third of the carriage expenses was to deliver goods to warehouse 3. Received utilities bill RM450 for August 2019, but no payment has been made 4. Insurance premium was paid for the year ended 31 December 2018 5. Received rent for the six months ended 30 September 2019 6. An additional amount due from Encik Nagendran RM 1,600 is to be written off as bad debts. Allowance for doubtful debts is to be increased to RM2,250. 7. Depreciation is to be provided as follows: Furniture & fittings : 20% per annum at cost Office equipment 20% per annum using straight-line method Motor vehicles 20% per annum using reducing-balance method Required: (a) Prepare the Statement of Income for Maju Jaya Trading for the year ended 31 August 2019. [13 marks) (b) Prepare the Statement of Financial Position as at that date. [12 marks] [Total: 25 marks)