Required: a) Prepare a Statement of Cost of Goods Manufactured for the year ended 31 December 2020. (10 marks) b) Prepare an Income Statement for the year ended 31 December 2020. (8 marks) c) Prepare a Schedule of Profit or Loss Division. (4 marks) d) Prepare a Statement of Partnership Capital for the year ended 31 December 2020. (4 marks) e) Explain TWO (2) advantages and TWO (2) disadvantages of partnership as compared to corporation. (4 marks)

On 1 January 2020, there were two young men, Alex and Mohsin who formed a business registered as A&M Partnership to produce electrical components. Alex and Mohsin contributed capital RM40,000 and RM35,000 respectively. The A&M Partnership agreement states the following terms: 1. Alex and Mohsin shall receive annual salary amounting RM24,000 and RM30,000 respectively. ii. Interest on partner's initial capital is 10% per annum. iii. Surplus of profit or loss shall be divided equally between partners. iv . Partnership uses fluctuating capital method to account their equity. On 1 June 2020, Mohsin contributed additional capital a total of RM3,000 into the partnership. Alex and Mohsin also withdrew cash for RM5,000 and RM2,000 respectively on 31 December 2020. The followings are some of the accounting information of A&M Partnership on 31 December 2020: RM Advertisment expense 4,800 Depreciation expense - Machine 3,400 Depreciation expense - Office equipments 2,100 Direct labour 28,000 Factories supplies used 4,100 Indirect labour 28,200 Inventories: Direct material, 1 January 35,600 Direct material, 31 December 35,000 Work in process inventories, 1 January 39,000 Work in process inventories, 31 December 36,000 Finished inventories, 1 January 33,000 Finished inventories, 31 December 28,000 Factory miscellaneous expense 2,800 Salary - Factory supervisors 22,000 Salary - General office staff 44,300 Discount on direct material purchased 1,000 Direct material purchased 62,000 Rental expense - machine 1,800 Rental expense - office equipments 1,600 Machine repairs 1,300 Sales 301,400 Sales return 2,700 Salary - Sales staff 43,400 Factory utility 12,700 Office utility 1 1,200