QUESTION 2 [25 MARKS] Bangi Cycle Ltd, a manufacturer, produced the trial balance information for the year ended 31 July 2021. RM RM Machine (cost) 120,000 Provision for depreciation - Machine 43,200 (1 August 2020) Equipment (cost) 40,000 Account receivable and Account payable 26,000 17,600 Cash at bank 30,000 Cash in hand 5,000 Inventories (1 August 2020) 8,000 Long term liabilities 32,000 Drawings 1,200 Provision for doubtful debts (1 August 2020) 1,700 Capital 92,700 Purchases and Sales 35,000 81,700 Return inwards and Return outwards 2,400 2,320 Water and electricity bills 1,200 Rental income 8.500 Commission income 2,400 Royalty expenses 2,800 Interest expenses 3,000 Discount allowed 1,200 Salary 5,000 Bad debts 400 Carriage inwards 320 Carriage outwards 600 282,120 282,120 The following information needs to be taken into account in the preparation of the final accounts: 1. Inventories as at the year-end was valued at RM12,000. 2. Royalty expenses paid cover up to September 2021. 3. Rental received for the amount of RM1,000 is still owed. 4. Provision for doubtful debts is to be adjusted at 5%.