Tata opens a bookstore as a sole proprietor. The following trial balances were extracted from the accounting records of Tata's bookstore as at 31 May 2021: Dr Cr RM RM Sales and purchases 63,317 188,545 Returns 786 687 Commission 150 Discount 1,050 2,472 Salaries 62,530 Trade receivables 3,265 Trade payables 2,876 Bank 1,536 Cash in hand 8,510 Advertising 1,346 Sundry expenses 2,000 Insurance 3,300 Rental of premises 30,000 Loan repayable in 2024 60,000 Utilities 2,583 Drawings 1,800 Allowance for doubtful debts 350 Bad debts 109 Carriage inwards 665 Carriage outwards 756 Motor vehicles 78,648 Office equipment 54,245 Accumulated depreciation - motor vehicles 7,864 Accumulated depreciation - office equipment 15.246 Inventory, 1 June 2020 4,816 Capital 40,000 319,726 319,726 The following additional information was available at 31 May 2021: 1. Inventories at 31 May 2021 were RM5,630. The net realisable value of the inventories was RM6,850. 2. Half of the sundry expenses incurred during the year was for Tata's personal expenses. 3. Insurance accrued was RM300 while rental paid in advance was RM2,500. 4. An additional bad debt of RM314 is to be written off. 5. The allowance for doubtful debts should be adjusted to RM500. 7. Depreciation charges are to be provided for motor vehicles at 20% at cost and office equipment at 10% on net book value. Required: a) Prepare a statement of profit or loss for the year ended 31 May 2021. (15 marks) b) Prepare a statement of financial position as at 31 May 2021. (10 marks) [Total: 25 marks]