Question 2 Mr. Marvin is a merchandising company which has business operations in Ipoh, Perak. The following trial balance has been extracted from the books as at 31 July 2021. Marvin Enterprise Trial Balance as at 31 July 2021 Descriptions Purchases and Sales Carriage inwards Carriage outwards Returns Rental Salary Advertising Debit Credit RM RM 365,000 820,000 5,300 1,200 3,200 7,200 4,200 110,000 600 Building maintenance 150,600 Repair of motor vehicle 30,200 Office expenses 43,600 Interest on loan 2,400 Bad debt 360 Building (Cost) 230,000 Fixtures and fittings 85,200 Accumulated depreciation as at 1 August 2020 Building Fixtures and fittings 42,000 13,200 Inventory as at 1 August 2020 35,000 Account receivables and Account payables 136,840 60,200 Bank 7,650 Bank loan 10% 80,000 Capital 192,350 1,213,150 1,213,150 5) Annual depreciation for the non-current assets as follow:- Fixtures and fittings Building 10% 2% Reducing balance method Straight line method 6) During the year, the proprietor has taken goods costing RM2,350 and give to his mother. He also took cash of RM800 per month from the business for his personal consumption. Cash drawings had been recorded in a Salary Account. 7) It has been agreed that further debts amounting to RM440 are to be written off against specific customers, and the closing provision for doubtful debts is to be adjusted to 2% of the revised account receivables figure. 8) The bank loan carries an interest rate of 10% per annum. It is the company policy to pay interest charges at the end of every year. Required: a) Prepare Marvin Enterprise's Statement of Profit or Loss (post adjustments) for the year ended 31 July 2021. (20 marks) b) Prepare Marvin Enterprise's Statement of Financial Position (post adjustments) as at 31 July 2021. (20 marks) (Total: 40 Marks) Other information: 1) Closing inventories as at 31 July 2021 was estimated to be worth RM18,900. 2) Included in building maintenance expenses is a building renovation cost RM65,000. 3) Accrued Expenses: Rental RM800, Salary RM3,250. 4) Prepaid Expenses: Advertising RM575. 5