Question 1 Ms. Nice is a sole trader and you are given the following information relating to her business: Dr Cr Trial balance as at 30 September 2020 RM RM 19.184 106,533 464,020 2,229 18,465 20,005 227,855 74,400 53,749 Inventory as at 1 October 2019 Wages & salaries Sales Carriage inwards Rent Gas Purchases Accounts receivable Account payable Machinery: at cost Computers: at cost Machinery: accumulated depreciation at 1 October 2019 Computers: accumulated depreciation at 1 October 2019 Drawings Bank Bad debt expense Allowance for doubtful debts at 1 October 2019 Capital 232,140 97,080 77,580 54,600 34,102 1,857 14,408 2.276 192,319 846,401 846,401 Additional information: 1. The inventory was counted at 30 September 2020 and was valued at RM16,491. 2. Depreciation is to be applied at the following rates: Machinery: (reducing balance) 15% Computers: (straight-line) 25% 3. The amount shown for rent on the trial balance includes a payment of RM10,500, which represents twelve months' rent to 31 May 2021. 4. Gas charges incurred for which no invoices have yet been received amount to a total of RM5,786. 5. The allowance for doubtful debts is to be set at 4 per cent of accounts receivable. Required: (a) Prepare a Statement of Profit or Loss for the year ending 30 September 2020. (10 marks) (10 marks) (b) Prepare a Statement of Financial Position as at 30 September 2020. All relevant workings must be shown. (c) Ms. Nice has heard about the treatment of non-current assets which she thinks is 'consumables. She wonders if her computers could be treated as consumables and not depreciated. Write a letter to Ms. Nice, using fictitious names and addresses, to answer her query. (5 marks) [Total: 25 Marks]