The following was the trial balance for Wirasaga Trading as at 31 December 2021:

List of Accounts Debit (RM) Credit (RM)

Accounts receivable 36,000 Accounts payable 21,600

Capital 215,450 Motor Van 145,000 Furniture 46,000

Accumulated depreciation: Motor van 25,650

Furniture 4,600 Water and electricity 5,800

Salaries 11,650 Interest on loan 9,000

Loan from bank 230,000 8% Fixed Deposit 80,000

Rental received 7,500 Bank 157,000

Cash 35,050 Discount received 2,500

Discount allowed 2,300 Allowance for doubtful debts 700

Sales 150,000 Purchases 88,700 Sales return 3,000

Purchase return 2,800 Drawings 1,500

Inventory on 1 January 2021 35,000

Carriage expenses 4,800

TOTAL 660,800 660,800

Additional information:

1. Inventory at year end was valued at RM49,000.

2. Depreciation for fixed assets was calculated using the following basis: Motor van -10% using reducing balance method Furniture - 10% using straight line method

3. The interest on loan available in the trial balance was for the period of 12 months starting 1 May 2021.

4. The following adjustments are to be considered for the period: Accruals RM Prepayments RM Rental received 1,800 Water and electricity bills 550

5. During the year, RM1,500 was written off as bad debt as the debtor was nowhere to be found. In addition, the allowance for doubtful debt needs to be increased by RM2,200.

6. 65% from the total carriage expenses was the cost to transport the goods sold to the customers' premises.

7. The 8% fixed deposit was invested by the business starting on 1 January 2021. The interest was still accrued and year end.

8. The owner took goods worth RM1,000 from the business for his own personal use.

Required:

a) Prepare Statement of Profit or Loss for the year ended 31 December 2021 for Wirasaga Trading.

b) Prepare Statement of Financial Position as at 31 December 2021 for Wirasaga Trading.