The following is the trial balance of Asbar Sdn Bhd as at 31 December 2019.

Unadjusted entries are as follows:

1. Sales of RM10,000 given 10% discount

2. Inventories at 31 December 2019 was RM63,000.

3. Cash donated to charity was RM8,000

4. Loan received from bank RM50,000 on 1 January 2019 @ 10% per annum with bullet repayment in 2022

5. Depreciation on cost

a. Motor vehicles 10% per annum; and

b. Fixtures 20% per annum

both straight-line method

6. The provision for bad debts is to be adjusted to 10 per cent of account receivables (after taking into consideration item 1).

Required:

a. Draw up a trading and profit and loss account for the year ending 31 December 2019.

(8 marks)

b. Statement of Financial Position as at 31 December 2019.

(7 marks)

Dr Cr RM RM Inventories - 1 January 2019 20,000 Sales 150,000 80,000 3,000 2,500 Purchases Carriage inwards Carriage outwards Returns outwards Wages and salaries Rent and rates 4,000 Communication expenses Commissions paid 30,000 20,000 7,000 5,000 3,000 4,000 50,000 Insurance Sundry expenses Motor vehicles 10,000 Accumulated depreciation of motor vehicles Account receivables 30,000 Provision for doubtful debts 4,000 35,000 Account payables Fixtures Accumulated depreciation of fixtures 20,000 10,000 Cash at bank Cash in hand 25,000 10,000 3,500 Drawings Capital 100,000 313,000 313,000