Question 1

The trial balance below was extracted from the books of Ceria Enterprise as at 31 December 2020:

	RM	RM
Capital		10,100
Sales		11,000
Insurance expenses	1,100
Utility expenses	1,000
Discount received		400
Interest received		800
Trade receivable	750
Provision for doubtful debt		350
Purchases	9,750
Drawings	550
Beginning inventory	3,000
Motor vehicle	8,000
Accumulated depreciation -motor vehicle		1,600
Return inwards and return outwards	500	400
	24,650	24,650

Additional information:

1. Closing inventory at 31 December 2020 is RM 6,000
2. Accrued insurance expenses is RM100.
3. Accrued discount received is RM50.
4. Prepaid utility expense is RM200.
5. Prepaid interest received is RM300.
6. Provision for doubtful debt is to be adjusted to RM400.
7. Depreciate motor vehicle at 10% per annum using straight line method.
8. Drawings of goods RM500.

Required:

1. Prepare a Statement of Profit or Loss for the year ended 31 December 2020.

(20 marks)

2. Prepare a Statement of Financial Position (Balance Sheet) as at 31 December 2020.

(20 marks)