The following trial balance was extracted from the books of Hermas Trading as at 31 December 2020. Particulars Debit (RM) Credit Sales Purchases Return outwards Return inwards Discounts (RM) 298,000 250,000 16,500 11,000 4,550 2,500 Carriage expenses 9,000 Duty on purchases 2,300 Inventory as at 1 January 2020 36,000 Salary expenses 20,500 Advertisement expenses 5,600 General expenses 1.000 Stationary 300 Utilities expenses 11,700 Interest on loan 800 Rental received 3,000 Commission received 4,000 Allowance for doubtful debt 1 January 2020 1,500 3% loan from Bank Rahmat 50.000 Accounts payable 23,000 Accounts receivable 22,500 Furniture and Fittings 60.000 Motor vehicles 95,000 Machinery 60,000 Investment 83,000 Accumulated depreciation as at 1 January 2020: Motor vehicles Machinery Cash in hand 22,500 12,000 10,950 Cash at bank Drawings Capital Insurance expenses Repairs and maintenance Patents 20,200 5,000 296,000 2,500 4,500 12,600 729,000 729,000 Additional information: 1. Inventory as at 31 December 2020 was valued at RM22,000. 2. The bank loan was approved on January 2020 and part of the interest on loan was still outstanding as at 31 December 2020. Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 11 AC/AUG 2021/ACC406/418 3. One of the credit customers owing RM800 was declared bankrupt and the debt needs to be written off. Allowance for doubtful debt is to be adjusted to 2% on the remaining accounts receivable. 4. Depreciations for the year are to be provided as follows: Motor vehicles Furniture and Fittings Machinery -20% per annum on cost, yearly basis -15% per annum on cost, yearly basis -10% per annum on carrying amount, yearly basis 5. During the year, the owner took goods worth RM700 for his personal use. 6. The following were prepayments as at 31 December 2020: Prepaid salary expenses Prepaid commission received RM6,500 RM2,000 7. Utilities bill for the month of December 2020 of RM250 was not yet paid. Required: a. The Statement of Profit or Loss for the year ended 31 December 2020. (18 marks) b. The Statement of Financial Position as at 31 December 2020. (12 marks) Note 1: Use vertical format presentation for both statements and show all calculations. Note 2: Calculate to the nearest RM. (Total: 30 marks)