The following trial balance has been extracted from the ledger of Danial Sdn.Bhd.

Danial Sdn.Bhd.

Trial Balance as at 31^st December 2018

Accounts	Debit ($)	Credit ($)
Purchases	77,750
Sales		158,050
Carriage inwards	2,300
Purchase return		1,600
Sales return	1,500
Account receivables	24,500
Account payables		16,540
Cash	27,225
Bank	14,300
Inventory as at 1 January 2017	10,730
Machinery	43,000
Motor vehicle ( purchased on 1.1.2016)	35,000
Accumulated depreciation motor vehicle		7,000
Accumulated depreciation machinery		8,600
10% fixed deposit at Affin Bank Berhad	20,000
Capital		76,800
Drawings	4,050
Interest on fixed deposit		2,000
Loan borrowings from OCBC Bank		34,000
Rental	16,500
Postage and stationary	2,800
Advertising	9,425
Salaries and wages	15,100
Insurance	600
Bad debts	700
Allowances for doubtful debs		110
Discount allowed	670
Discount received		1,450
TOTAL	306,150	306,150

Additional information:

1. Inventory as at 31 December 2018 was $9,500.
2. Rent for December, amounting to $1,500 was not paid and not included in the books.
3. The owner took $550 cash and $200 worth of inventories for personal use and these were not recorded.
4. Allowance for doubtful debts is to be adjusted to 2% of account receivables. On the 28^th December 2018, the owner identifies that bad debt to be provided is $850.
5. $900 of the advertising was prepaid.
6. Depreciation is provided as follows:

• Machinery - 20% on reducing balance method
• Motor Vehicle - 20% on reducing balance method

Required:

1. Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 31^st December 2018.

2. Prepare a Statement of Financial Position as at 31^st December 2018.