The following list of balances is prepared by Sabri Autoworks as at 31 December 2020.

Description	Amount RM
Sundry debtors	145,000
Sundry creditors	63,000
Drawings	52,450
Opening capital	710,000
Insurance expense	6,000
Purchases return	5,000
General expenses	30,000
Sales	988,800
Salaries	150,000
Commission	3,200
Patents	75,000
Machinery	200,000
Land	100,000
Building	300,000
Opening inventory	58,600
Carriage on purchases	20,400
Carriage on sales	32,000
Fuel and power	47,300
Wages	104,800
Return inward	6,800
Cash at bank	29,500
Cash in hand	5,400
Purchases	406,750

Other information

1. Inventory on 31December 2020 was valued at RM68,000.
2. Depreciation on machinery by 10% and amortisation of patents by 20% using straight line method.
3. Unexpired insurance at the end financial year was RM2,000.
4. Wages includes RM7,000 paid as advance to employees for upcoming festival celebration.

Required:

Prepare the following items for Sabri Autoworks.

1. General journal entries to record all the adjustments.

(4 marks)

2. Adjusted Trial Balance as at 31 December 2020.

(4 marks)

3. Income Statement for the year ended 31 December 2020.

(11 marks)

4. Statement of Financial Position as at 31 December 2020.

(12 marks)

5. A short explanation on THREE (3) disadvantages of preparing income statement.

(9 marks)

(Total: 40 marks)