Additional information: i. The provision for bad debts should be 4% of trade receivables. ii. Depreciation is to be charged as follows: -Buildings 2% on cost. -Plant and machinery 20% on cost. -Vehicles 25% on cost. iii. The closing inventories is valued at RM57,000.

Required: a. Prepare the Statement of Comprehensive Income for the year ended 31 December 2020. (19 marks) b. Prepare the Statement of Financial Position for the year ended 31 December 2020. (11 marks)

Questions The following balances were extracted from the books of Billion Precision for the year ended 31 December 2020. Dr (RM) Cr (RM) Land 500,000 Building 200,000 Motor vehicles 120,000 Plant and machinery 70,000 Profit bf as at 01.01.2020 237,650 Capital 438,000 Acc depreciation as at 1.1.2020 -Building 60.000 -Motor Vehicles 69.250 -Plant & Machinery 40,000 Returns 3,600 4,100 Revenue 800,000 Purchases 400,000 Discounts 5,000 2,000 43,200 Carriage inwards Opening inventory Provision for bad debts Trade receivables / Trade payable Advertising Staff training cost Bad debts Motor expenses Rental Bank Wages and salaries 7,700 52,000 66,000 18,000 4,000 12,500 27,000 90,000 7,600 126.000 1,701,800 1,701,800