Sendayan Square Ltd, a manufacturer, produced the trial balance information for the year ended 31 December 2020. RM RM 92,700 120,000 43,200 17,600 40,000 26,000 30,000 5,000 8,000 32.000 1.200 1,700 Capital Heavy Machine (cost). Provision for depreciation Heavy Machine L(1 January 2020) Equipment (cost) Account receivable & Account payable Cash at bank Cash in hand Inventories (1 January 2020) Long term liabilities Drawings Provision for doubtful debts (1 January 2020) Purchases Sales Return inwards & Return outwards Water and electricity bills Royalty income Commission income Rental expenses Interest expenses Discount allowed Salary Bad debts Carriage inwards Carriage outwards 35,000 81.700 2,320 2,400 1,200 8,500 2,400 2.800 3,000 1,200 5,000 400 320 600 282,120 282,120 The following information needs to be taken into account in the preparation of the final accounts: 1. Rental expenses paid cover up to February 2021. 2. Royalty received for the amount of RM1,000 is still owed. 3. Provision for doubtful debts is to be adjusted at 5%. 4. Inventories as at the year-end was valued at RM12,000. Page 2 of 4 CONFIDENTIALISULIT EBAB 123 Semester 2 2020/2021 5. Depreciation for the year ended 31 December 2020 has yet to be provided as follows: Heavy Machine - 20% reducing balance method Equipment - 10% straight line method Required: a) Prepare a Statement of Profit and Loss for the financial year ended 31 December 2020. [16 Marks b) Prepare a Statement of Financial Position as at 31 December 2020