The Trial Balance of Malcolm Berhad as at 31 December 2019 is as follows:

DRRM ('000)

CR RM ('000)Ordinary Share capital (RM1 per share)750Inventory at 1 January2019 189Trade receivables 560Trade payables196Allowance for receivables34Share premium90Retained earnings b/f246Irrecoverable debts37Equipment at cost410Motor vehicles at cost741Bank260Cash in hand48Sales1980Purchases1110Returns26 26Carriage inwards15Wages & salaries156Rent, assessment and insurance 119Discounts18 25Directors' remuneration 28Accumulated depreciation:-Equipment112-Motor vehicles25837173717

3

Additional information:

(1)Inventory at 31 December 2019 was valued at RM140,000.

(2)Allowance for receivables of 7% is to be provided.

(3)A dividend of 3 sen per share on the ordinary shares was proposed.

(4)Rent of RM2,000 and director's remuneration of RM8,000 are outstanding. Insurance amounting to RM3,000 has been paid in advance.

(5)The company uses the straight line method of depreciation for the equipment at 15% per annum and for the motor vehicles at 20% per annum.

(6)Corporate tax of 25% is to be provided.

Required:

(a) Prepare Statement of Profit or Loss for the year ended 31 December 2019.

(b) Prepare the Statement of Financial Position as at 31 December 2019.