Trial balance as at 30 September 2020	Dr	Cr
	RM	RM
Inventory as at 1 October 2019	19,184
Wages & salaries	106,533
Sales		464,020
Carriage inwards	2,229
Rent	18,465
Gas	20,005
Purchases	227,855
Accounts receivable	74,400
Account payable		53,749
Machinery: at cost	232,140
Computers: at cost	97,080
Machinery: accumulated depreciation at 1 October 2019		77,580
Computers: accumulated depreciation at 1 October 2019		54,600
Drawings	34,102
Bank		1,857
Bad debt expense	14,408
Allowance for doubtful debts at 1 October 2019		2,276
Capital		192,319
	846,401	846,401

Additional information:

1. The inventory was counted at 30 September 2020 and was valued at RM16,491.
2. Depreciation is to be applied at the following rates: Machinery: (reducing balance) 15% Computers: (straight-line) 25%
3. The amount shown for rent on the trial balance includes a payment of RM10,500, which represents twelve months' rent to 31 May 2021.
4. Gas charges incurred for which no invoices have yet been received amount to a total of RM5,786.
5. The allowance for doubtful debts is to be set at 4 per cent of accounts receivable.

Required:

1. Prepare a Statement of Profit or Loss for the year ending 30 September 2020.
2. Prepare a Statement of Financial Position as at 30 September 2020. All relevant workings must be shown.
3. Ms. Nice has heard about the treatment of non-current assets which she thinks is consumables. She wonders if her computers could be treated as consumables and not depreciated. Write a letter to Ms. Nice, using fictitious names and addresses, to answer her query.