Question 3 The following accounts balances were extracted from the books of Monday Enterprise for the year ended 30 June 2008. Description RM Capital 391,054.00 Vehicles 75,000.00 Freehold premises at cost 360,000.00 Land at cost 150,000.00 Accum. deprn - Vehicles 27,000.00 Accum. deprn - Freehold premises 72,000.00 General expenses 20,000.00 Discount received 3,225.00 Discount allowed 527.00 Bad debts expenses 1,650.00 Inventory (1 Jan 2007) 36,200.00 Cash in hand 7,500.00 Cash at bank 25,000.00 Purchases 84, 590.00 Sales 268,450.00 Amount due by director 4,400.00 Debtors 64,000.00 Creditors 46,000.00 Insurance expenses 4,125.00 Mortgage on premises 105,000.00 Investment 55,000.00 Rent income 18,000.00 Wages and salaries expenses 36,000.00 Carriage expenses 1,837.00 Duty on purchases 1,400.00 Advertising expenses 2,500.00 Interest on mortgage 2,000.00 Return outwards 1,500.00 Return inwards 500.00 Additional information: a) Inventory as at 30 June 2009 was RM45,900. b) Prepaid insurance portion included in the insurance expenses account was amounted to RM1,200. c) Interest mortgage amounting to RM500 was accrued. d) Included in the rent income account are amount of rent income for 15 months to Sept 2008. e) Out of the total carriage inward, RM400 was carriage inwards. f) Advanced salary paid to the staff amounting to RM 500. g) Vehicles and Freehold Premises are depreciated at 20% per annum on cost. h) Provision for doubtful debts is to be calculated based on the debtor's balance at that rate of 5%. You are required to prepare: i) Profit and loss account for the year ended 30 June 2008. ii) Balance sheet as at 30 June 2008