Question 1 The following list of balances has been extracted from the books of Vincent, the owner of a small book store, on 31 December 2016: RM Sales 110,000 Purchases 45,000 Stock as at 1 January 2016 Discount allowed 1,500 600 Discount received 450 Office salaries 9,800 Advertising 1,200 Bank 3,000 Debtors 6.300 Commission received 200 Rent 3,600 Return inwards 300 Bad debts 200 Bank loan 19,500 Delivery 25,000 van Staff entertainments 4,640 Office furniture 39000 General expenses 4,500 Insurance 1,200 Creditors 1,700 Capital Drawings 8,670 1,120 Additional information: 1. Stock as at 31 December 2016 RM1.800. 2. Insurance accrued RM350. 3. Provision for doubtful debts is to be provided at 10% of debtors' balance 4. Rental have been prepaid by RM500 Required: (a) Prepare an income statement for the year ending 31 December 2016 (12 marks) (b) Prepare a statement of financial position as at 31 December 2016 (13 marks)