QUESTION 1 The following is the trial balance extracted from the books of Melur Enterprise at 31 December 2021: Dr (RM) C (RM) Sales 53,300 Purchases 18,500 Insurance expenses 1,760 Salaries expense 7,050 Inventory at 1 January 2021 7.500 Fumiture & Fittings cost 18,000 Furniture & Fittings: accumulated depreciation 4,500 Motor vehicles: cost 72,500 Motor vehicles: accumulated depreciation 14,500 Accounts receivable 14,150 Provision for doubtful debts Accounts payable 25,550 Bank 3,400 Carriage inwards 900 Discount allowed 1.570 Bad debts Utility expenses 3.680 Bank loan 20,000 Sales Returns 2,630 Purchase Returns 3,500 Capital 33,350 Drawings 3,150 SSO 460 155,250 155,250 The following additional information was available for considerations. a) Inventory at cost on 31 December 2021 was RM1,200. (b) Salaries RM3,000 is to be accrued. (c) Insurance of RM1,000 was prepaid (d) The provision for doubtful debts is to be reduced to RM400. (e) Interest expense of RM400 is to be accrued. (0 Depreciation is to be provided as follows: Furniture & fittings - RM2,750 Motor vehicles - RM5,400 Required: Prepare the statement of profit or loss for the year ended 31 December 2021 and the statement of financial position at that date. (Total: 25 marks)