The following is the Trail Balance of Lola and Lili Partnership on 31 December 2020.

Lola and Lili

Unadjusted Trial Balance

	Debit (RM)	Credit (RM)
Cash	3,500
Account Receivables	61,400
Inventory	12,000
Land	260,000
Account Payable		25,800
Long-term Note Payables		51,000
Capital: Lola Lili		60,000 66,000
Drawings: Lola Lili	8,500 9,400
Sales		550,000
Cost of Goods Sold	220,000
Water & Electricity Expenses	83,000
Administration Expenses	95,000
	752,800	752,800

Additional Information:

1. Annual salary of RM55,000 is to be paid to Lola and RM60,000 to Lili.
2. Interest of 10% on capital is to be paid at the beginning of the year. The capitals of both partners do not change since the beginning of the year.
3. The balance of income after the distribution of salaries and interests is to be distributed equally.
4. Accrued water & electricity expenses is RM 500.

Required:

1. Prepare the Statement for Profit or Loss for the year ended 31 December 2020.

(6 marks)

2. Prepare the Profit and Loss Appropriation Account for the year ended 31 December 2020.

(7 marks)

Prepare the Statement of Financial Position as at 31 December 2020.