The following Trial Balance was extracted from the books of Mawar Merah Sdn. Bhd. as at December 2021. Purchased and sales Returns inwards and returns outwards Transportation expenses Account receivables and account payables Fixtures and fittings Land and building Motor vehicles Accumulated depreciation as at 1/1/2021: Fixtures and fittings Motor vehicles 10% loan from Hong Leong Bank Duty on purchases Utility expenses Insurance Salary and wages 10% fixed deposit (investment) Bad debts General expenses Cash Bank Inventory as at 1/1/2021 Commissions Discount allowed and discount received Interest on loan Drawings Provision for doubtful debts Capital Additional information: 1) Inventory as at 31 December 2021 was RM60,000. Debit RM 350,000 5,000 14,500 68,000 51.000 500,000 300,000 4,400 3.000 15,600 48,000 22,000 5,200 8,400 14,800 84,500 112,000 7,000 5,000 2,400 8,000 1,628,800 Credit RM 565,000 3,300 45,000 21,300 108,000 460,000 12,400 9,300 4,500 400.000 1,628,800 2) The owner withdrew closing inventory worth RM3,000 and cash RM2,000 for her personal use. 3) The following expenses are still outstanding as at 31 December 2021: RM1,200 RM500 General expenses Utility expenses 4) Included in transportation expenses is carriage inwards amounting to RM2,500. 5) One of the staff was given an advance salary of RM1,000 and no record has been made in the account. 6) One of the debtors owing an amount of RM1,120 was declared bankrupt and the amount has be written off as a bad debt. 7) Depreciation for the year are to be provided as follows: Fixtures and fittings - 10% on the cost (straight-line method) Motor vehicles -20% on net book value (reducing balance method) 8) Provision for doubtful debts is estimated at 5% of the total outstanding accounts receivables. 9) During the year, the owner contributed additional RM20,000 cash. Required: a) Prepare the Income Statement or Statement of Profit or Loss for the year ended 31 December 2021. (15 marks) b) Prepare the Statement of Financial Positions as at 31 December 2021. (15 marks) (Total: 30 Marks)