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Aneka Trading is a sundry shop business owned by Mr. Aqil. The following trial balance for his business as at 31 December 2020 was extracted from his books. Aneka Trading Trial Balance as at 31 December 2020 Debit (RM) Accounts Credit (RM) 45,000 5,950 11,500 26,000 500 22,250 70,000 Inventory on 1 January 2020 Cash Bank Accounts receivable Allowance for doubtful debts Accounts payable Capital Motor Vehicle Office Equipment Accumulated Depreciation - Motor vehicle Accumulated Depreciation - office equipment Sales Return inwards Purchases Return outwards 100,000 30,000 40,000 7,500 330,000 3,000 240,000 2nnn 2,000 3,400 1,500 3,600 2,200 4,600 Return outwards Carriage inwards Carriage outwards Drawings Discount allowed Discount received Utilities expenses Insurance expenses Bad debts expenses Selling expenses Interest on loan Wages and salaries Rental received Long term loan, 8% p.a. 3,800 7,900 750 8,800 1,250 27,000 14,000 30,800 Total 521,650 521,650 Additional information: 1. Inventory as at 31 December 2020 was RM38,000. 2. Included in the insurance expense was a general insurance amounting to RM600 which was for the next accounting period. 3. Interest on bank loan for half a year was unpaid. 4. One of the accounts receivables was declared a bankrupt. The amount owing to Aneka Trading was RM3,000. 5. Utilities expenses for December 2020 amounting to RM1,600 have not been included in the accounts. 6. The owner took out cash amounting worth RM300 for personal dinner celebration with his family. 7. Allowance for doubtful debts is to be adjusted to 5% of net account receivables. 8. Depreciation is to be charged as follow: i. Office Equipment 25% on reducing balance method ii. Motor Vehicles 20% on straight line method his family. 7. Allowance for doubtful debts is to be adjusted to 5% of net account receivables. 8. Depreciation is to be charged as follow: i. Office Equipment 25% on reducing balance method ii. Motor Vehicles 20% on straight line method Required: (a) Prepare an Income Statement for the year ended 31 December 2020. (15 marks) (b) Prepare the Statement of Financial Position as at 31 December 2020. (10 marks) (Total:25 Marks)

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