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Latifah is the owner of Lala Trading. Below is the trial balance extracted from the...

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Accounting

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Latifah is the owner of Lala Trading. Below is the trial balance extracted from the books of company as at 31 December 2018. Additional information: 1. Inventories as at 31 December 2018 was valued at RM15,000. 2. Depreciation for the year in to be provided as foliows: Furniture and fittings 15% p.a Straight line method, yearly basis Office equipment 10% p.a Straight line method, yearly basis Motor vehicle 10% p.a Reducing balance method, yearly basis 3. Bad debts of RM1,000 are to be written off and the allowance for doubtful debts is to be adjusted at 10% of net accounts receivables. 4. Accrued electricity and water was RM500 as at 31 December 2018. 5. Loan was taken on 1 July 2018 and the interest on loan has yet to be paid. 6. Rent expense worth RM2,000 was paid in advance. 7. The owner had withdrawn RM800 cash and took goods worth RM1,200 for personal use. Required: a. Prepare a Statement of Profit or Loss for the year ended 31 December 2018 , (18 marks) b. Prepare a Statement of Financial Position as at 31 December 2018. (12 marks)

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