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QUESTION 2 The following was the trial balance for Usaha Trading as at 31 December 2020: Debit (RM) Credit (RM) 206,350 135,000 36,000 22,000 25,650 3,600 4,400 List of Accounts Capital Motor Van Furniture Office Equipment Accumulated depreciation: Motor van Furniture Office equipment Stationery Water and electricity Salaries Interest on loan Loan from bank 8% Fixed Deposit Rental income Dividend received Bank Cash 250 2,800 11,400 6,000 200,000 50,000 7,500 2,200 187,000 28,650 Accounts receivable 26.000 Accounts payable 24,000 Discount received 2.000 Discount allowed 1,800 Allowance for doubtful debts 700 Sales 180.000 Purchases 96.000 Sales return 3,000 Purchase return 2.800 Drawings 1,500 Rental expenses 9.600 Inventory on 1 January 2020 39.000 Carriage expenses 3.200 TOTAL 659,200 659,200 Additional information: 1. Inventory at year end was valued at RM45,000. 2. Depreciation for fixed assets was calculated using the following basis: Motor van -10% using reducing balance method Furniture -10% using straight line method Office equipment - 20% using straight line method 3. The interest on loan available in the trial balance was for the period of 12 months starting 1 May 2020. 4. The following adjustments are to be considered for the period: Accruals RM Prepayments RM Rental income 1,500 Water and electricity 350 bills 5. During the year, RM2,000 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. 40% 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 2020. The interest was still accrued and year end. 8. The owner took goods worth RM800 and RM1,000 cash from the business for his own personal use. Required: a) Prepare Statement of Profit or Loss for the year ended 31 December 2020 for Usaha Trading b) Prepare Statement of Financial Position as at 31 December 2020 for Usaha Trading. Note: Use vertical format presentation (30 marks)