QUESTION 1 Nurin Trading Sdn Bhd is a merchandising company which has business operations in Cyberjaya. The following balances have been extracted from the books as at 31 December 2020 Credit (RM) Debit (RM) 570,000 30.000 5,700 175,000 18,000 61,400 58.600 68,500 30,000 400,000 Land Machinery Accumulated Depreciation: Machinery 75% Loan from MBK Bank, 10 Years Cash Account receivable Inventories, 1 Jan Account payable Dividend Share Capital Supplies Camiage outwards Carriage inwards Returu inwards Purchases and sales Discount allowed Salaries expenses Bad debts Prepaid insurance Interest expenses Telephone and intemer charges Rental and maintenance General expenses Retained earnings, 1 Jam 490,000 55,000 20,000 4,800 1.000 220,000 22.500 75,000 5,000 18,000 6,563 2,500 18,000 27,900 1,244,263 105,063 1,244,263 Additional information: 1. Closing inventories as at 31 December 2020 was valued at RM25,000. 2. A count on supplies on 31 December 2020 revealed RM30,000 worth of supplies are still on hand Continued... 3. Half of the interest on loan has not been paid for the year. 4. Commission received RM7,500 has not been included and no entries had been recorded in the books. 5. Depreciation was to be provided: Machinery 10% on reducing balance 6. Telephone and internet charges outstanding amounted to RM650. 7. The prepaid insurance is for a 12-month policy purchased by cash on 1 March 2020. The policy is effective from 1 March 2020. Required: a) Prepare the Statement of Profit or Loss Income Statement for the year ended 31 December 2020. (15 marks) b) Prepare the Statement of Financial Position as at 31 December 2020. (10 marks)