Question 1 The following trial balance was extracted from the books of Alphonso Albukhari & Co a sole trader, at the close of business on 315 December 2020. Debit Credit RM RM 805,300 Capital as at 1st January 2020 Cash in Hand Cash at Bank 2,300 12,900 80,150 500 Accounts Receivables/ Debtors Bad Debts 47,200 Creditors/ Payables General Expenses Drawings Salaries Carriage Inwards Carriage Outwards Insurance Motor Expenses Sales 32,100 25,000 62,000 2,250 3,250 10,500 18,200 952,000 Returns Inwards 8,200 557,000 Purchases Returns Outwards 9,600 10,000 Rent Received Interest on Loan 5,500 6% Loan 100,000 Discount Allowed 4,800 Discount Received 2,750 160,000 Motor Vehicle Provision for Depreciation of Motor Vehicle 40,000 76,000 30,500 Office Equipment Provision for Depreciation of Office Equipment Premises Stock 1st January 2020 900,000 36.700 1997.350 1.997 350 Additional information at 31 December 2020: i) Stock as at 31 December 2020 - RM43.650 ii) A debt of RM650 was considered irrecoverable. The full amount is to be treated as a bad debt in the accounts for the year ended 318 December 2020. iii) A provision for doubtful debts is to be created at 2% on the remainder of the debtors. iv) Rent Receivable is RM12,000 per annum, to date only 10 months' rent has been received. v) One month's loan interest is still due. vi) On 310 December 2020, salaries owing amounted to RM1.200, while insurance was prepaid by RM1,860 vii) Alphonso received an invoice for RM600 on 18 October 2020 for repairs to a motor vehicle. To date the invoice has not been paid. viii) Alphonso had taken goods from the business costing RM7.000 for his own use. This has not been recorded in the accounts. ix) Provision for depreciation is to be provided as follows: Motor Vehicles 25% by the reducing balance method. Equipment -10% by the straight line method. (a) Prepare the Income Statement for the year ended 318 December 2020. (20 marks) (b) Prepare Statement of Financial Position as at 31st December 2020. (20 marks)