QUESTION 1 The following balances were extracted from the books of Turnkey for the year ended 31 December 2020: b) Debit Credit RM RM Office equipment at cost 56,800 Motor vehicle at cost 76,400 Fixtures and fittings at cost 30,000 Accumulated depreciation on 1 Jan 2020 Office equipment 16,400 Motor vehicles 17,600 Fixture and fittings 10,000 Provision for doubtful debts 2,600 Purchases and sales 525,320 690,234 Sales returns and purchase returns 490 1,260 Insurance 4,700 Discount allowed and discount 375 508 received Bad debts 2,970 General expenses 32,676 Salaries and wages 52,480 Inventory on 1 Jan 2020 55,290 Accounts receivable and accounts 62,460 42,191 navable Bank overdraft 14,280 Cash 2,172 Drawings 30,000 Long-term loan at 10% p.a. repayable 40,000 in 2025 Capital 97,060 4 932,133 932,133 The following information was available on 31 December 2020: i. Inventory valued at cost was RM48,750. ii. Wages outstanding amounted to RM636. iii. Insurance prepaid was RM700. iv. Interest on loan has not been paid for the year. v. Depreciation was to be provided: Office Equipment Motor Vehicles 20% on cost 25% on cost Fixtures and fittings 12.5% on reducing balance vi. The provision for doubtful debts should be adjusted to 5% of debtors at year-end. Required: Prepare the statement of profit or loss for Turnkey for the year ended 31 December 2020. (15 marks) Prepare a statement of financial position for Turnkey as at 31 December 2020. (10 marks) (Total: 25 marks)