QUESTION 1 Sam Bhd. is registered with an authorised capital of 600,000 ordinary shares of RM1. The following trial balance was extracted from the books of the company on 31 December 2021, after the preparation of the trading account: Dr Cr RM RM Ordinary share capital, fully paid 400,000 Land and buildings at cost 340,000 Sundry debtors 76,600 Furniture & fittings at cost 160,000 Prepayment 7,600 Sundry Creditors 50,000 Inventory at 31 December 2020 84,000 Bank 24,000 Trading account: gross profit 196,100 Office salaries and expenses 50,000 Provision for depreciation on furniture & fittings 64,000 Share premium account 40,000 Advertising and selling expenses 10,000 Irrecoverable receivables 500 Allowance for irrecoverable receivables 1,200 Retained earnings 24,000 Directors' fees 22,600 775,300 775,300 Additional information: 1. The allowance for irrecoverable receivables is to be adjusted to RM1,400. 2. Depreciation is to be provided in respect of furniture and fittings at 10% per annum on cost. 3. RM50,000 is to be transferred from profit and loss to general reserve. 4. The company proposed a dividend on share capital at 10%. You are required to: (a) Prepare a statement of profit and loss for the year ended 31 December 2021 and a statement of financial position as at that date.