Question $1$

Mr$.$Hafiz is a merchandising enterprise that has business operations in Ipoh, Perak. The following trial balance has been extracted from the enterprise$$s books as at $31$st December $2023.$

Hafiz Enterprise

Trial Balance as at $31$ December $2023$

Descriptions Debit

RM Credit

RM

Purchases and sales $377,000950,000$

Plant and machinery $432,000$

Vehicles $102,000$

Land and building $525,000$

Accumulated depreciation: Plant and machinery Vehicles

$175,000$

$39,000$

Discounts $1,500760$

Returns $44,00012,200$

Carriage inwards $4,700$

Carriage outwards $5,500$

Custom duties $15,400$

Drawings $3,600$

Allowance for doubtful debts $2,000$

Salaries and wages $300,000$

Electricity and water $65,000$

Rent and rates $4,000$

Insurance $55,000$

Mortgage on land and building $350,000$

Repairs and maintenance $6,300$

Commission received $95,000$

Accounts receivable $187,000$

Accounts payable $166,500$

Cash at bank $41,000$

Capital $429,540$

Inventory as at $1$ Jan $202351,000$

$2,220,0002,220,000$

Other information:

$1)$ Inventory on $31$ December $2023$ was RM$42,800$

$2)$ Additional bad debts of RM$1,600$ is to be written off.

$3)$ Adjustments are as follows:

Accrued rent and rates RM$1,000$

Accrued electricity and water Prepaid salaries and wages Prepaid insurance RM$4,800$ RM$4,500$ RM$5,000$

Required:

a$)$ Prepare Hafiz Enterprise$$s Income Statement for the year ended for the year ended $31$ December $2023.$