QUESTION 1 Sogut Enterprise is a merchandising company which has business operations in Cyberjaya. The following balances have been extracted from the books as at 31 December 2019. Debit (RM) Credit (RM) Purchases and Sales 97,500 150,000 750 400 550 300 4,000 16,000 1,250 3,500 300 3,900 Discount allowed and discount received Carriage inwards Carriage outwards Return inwards and return outwards Inventory as at 1 January 2019 Advertising Dividend received Rental Bad debt Salary Utilities Insurance Cash Bank Account receivables and account payables Capital Loan from Maybank Freehold premises Furniture Motor vehicles Investment Accumulated depreciation - Furniture Accumulated depreciation - Motor vehicles Drawing 3,000 1,800 9,000 1,500 2,000 2,600 7,600 50,000 68,500 154,950 90,000 200,000 8,000 52,000 32,000 3,200 15,600 1,200 490,700 490,700 Additional information: 1. Inventory as at 31 December 2019 was valued at RM52,000. 2. Rental received is for the period from 1 January 2019 to 31 March 2019. 3. RM200 of utilities was paid in advance. 4. The owner had withdrawn RM1,300 goods for his family use and no record was made. 5. Additional bad debts of RM1,100 was to be written off. Continued... 6. Insurance amounting RM1,000 was still outstanding at the end of the accounting period. 7. Depreciation is to be charged as follows: i) Furniture - 20% per annum on cost, straight line method. ii) Motor vehicles - RM5,200 per year. 8. Interest on loan at 5% per annum has not been paid. Required: a) Prepare the statement of profit or loss for the year ended 31 December 2019. (15 marks) b) Prepare the statement of financial position as at 31 December 2019. (10 marks) (Total: 25 marks)