QUESTION 2 Peggy, a sole trader, has provided the following information for the year ended 31 December 2020: RM Sales Ledger at 1 January 2020 31 810 Purchase Ledger at 1 January 2020 16,500 The following are the transactions during the financial year RM 219,000 41.900 231,320 108,470 113.145 1.900 745 Total receipts from accounts receivable Cash sales Credit sales Total cheques payment to accounts payable Credit purchases Discount allowed Discount received Cash purchases Sales ledger contra/purchases ledger contra Goods taken by the owner Goods returned by accounts receivable Goods returned to accounts payable Returns inwards Returns outwards Refund to accounts receivable for overpayment Bad debts written off Accounts receivable's cheque dishonoured Legal fees reimbursed to accounts receivable Interest charged to accounts receivable for overdue invoices 21,600 2.500 1.100 523 236 500 1,500 800 320 150 1,200 500 The allowance for doubtful debts is to be maintained at 2% of accounts receivable at 31 December 2020. Required (a) Prepare the following for the year ended 31 December 2020: (1) Sales ledger control account (ii) Purchases ledger control account (b) Prepare a Statement of financial position extract at 31 December 2020 showing the current assets and current liabilities