Question 3 List of Accounts Electro Enterprise seils electrical products including washing machines, air conditioners water heaters and televisions. The following balances were extracted from the books of Electro Enterprise as at 31 December 2018 Debit Credit Capital (RM) (RM) Inventories as at 1 January 2018 363.600 22.500 Freehold Land 250.000 Motor Vehicles 96.000 Office Equipment 25,000 Accumulated depreciation as at 1 January 2018 Motor Vehicles 38.400 Office Equipment 5,890 5% Fixed Deposit 50,000 Bank 55.800 Cash 2.470 Account Receivables 21.500 Account Payables 36 400 10% loan from Bank Mewah 40 000 Purchases and sales 115,600 265.000 Return inwards and outwards 150 800 Discounts 570 1.960 Insurance on purchase 350 Bank charges 1,000 Rental expense 9,600 Stationeries 800 Carriage expenses 4.800 Salanes 78,000 Utilities 8,460 General expenses 8,280 Advertising expenses 10.200 Commission received 9.000 Drawings 580 Allowances for Doubtful Debt as at 1 January 2018 610 761,660 761,660 Additional information 1 Inventories as at 31 December 2018 were valued at RM28 500 2 The Fixed Deposit account was opened on 1 July 2018 and interest is at 5% per annum No interest has been received during the year 3 The owner took cash RM1,000 and goods worth RM3,000 for personal use 4 5 The loan from Bank Mewah was taken on 1 January 2018. No interest has been paid on this loan at the end of accounting period Allowances for doubtful debt were to be adjusted to RM645 25% of carriage expenses were carriage inwards and the remainder were carriage outwards expenses. Depreciation is to be provided as follows 6 7 Motor vehicles Office equipment 10% on straight line method 7% on reducing balance method 8. The following adjustments are to be considered for the period Prepayments Commission received Stationeries RM Accruals 2.000 Salaries 100 Utilities RM 2,500 500 Required: a Prepare a Statement of Profit or Loss for the year ended 31 December 2018 (20 marks) b Prepare a Statement of Financial Position as at 31 December 2018 (13 marks) Note: Use vertical format presentation (Total 33 marks)