1. Balances as at 28 February 2023:

R

Members contribution: Thabo

168000

Members contribution: Thabang

252000

Retained earnings (1 March 2022)

67920

Revaluation surplus

98400

Loan from Thabo

84000

Distribution to member: Thabo

38400

Distribution to member: Thabang

57600

Loan to Thabang

60000

Allowance for credit losses

3600

Land and buildings at valuation (cost price R153600)

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Equipment at cost (01 March 2022)

198000

Investment at fair value

150000

Trading inventory

168600

Consumable inventory

7440

Long-term loan: Lethabong bank

72000

Accumulated depreciation: Equipment

74784

Accrued expenses

8160

Prepaid expenses

4200

Bank (overdraft)

30144

Petty cash

840

Trade receivables control

84528

Trade payables control

37848

Profit before tax

209256

SARS (Income tax) (Dr)

84504

Additional information

1.The following information relates to the fixed assets of Alphabets and Numbers:

The depreciation on the old equipment for the year amounted to R42 250.

On the 28 February 2023 Alphabets and Numbers purchased a new equipment for R150 000. It is the accounting policy to depreciate equipment at 20% per annum with nill residual value. The transaction still needs to be recorded.

On 31 December 2022 the land and buildings were revalued for by Mr Two, an independent sworn appraiser. The transaction has already been recorded.

There were no other disposals of, or additions to the land and buildings and equipment during the financial year except for the ones mentioned above.

2. On 1 September 2022, Alphabets and Numbers CC purchased 30 000 ordinary shares at R4 each in Vodakom Limited. On 28 February 2023 the shares traded at R5,00 per share.

3. Credit losses of R6 000 must be written off. The closing balance of the allowance for credit losses account must be increased with R1 200.The transaction has not yet been recorded.

4. The loan to Thabang is immediately callable.

5. During 2023 Alphabets and Numbers obtained an interest free loan from Thabo of R84 000, the first instalment of R21 000 must be paid on 31 January 2024.The loan is unsecured.

6. The actual income tax for the financial year amounted to R62 850 and must still be

recorded.

7. A further distribution of R20 000 to Thabo and R35 000 to Thabang must still be made to the members.

8. Alphabets and Numbers obtained a long-term loan from Lethabong Bank on 1 June 2022 at 15% interest per annum and is secured by mortgage bond over land and buildings. The capital amount of the loan must be repaid on 31 May 2026.

compile a statement of financial position.