2 000 The following balances appeared in the books of Tangelo Traders at 31 March 2012: N$ Accumulated depreciation: Equipment 9 000 Vehicles 13 000 Advertisements 2 100 Bank (unfavourable) 12 000 Bookkeeping fees 4 400 Capital 210 000 Creditors 55 000 Debtors 46 000 Drawings 21 000 Equipment at cost price 90 000 Insurance 3 000 Inventory (1/4/2011) 60 000 Loan: Standard Bank 75 000 Provision for doubtful debts Purchases 102 000 Rent income 4 400 Salaries and wages 25 000 Sales 217 000 Stationery 500 Telephone 17 800 Vehicles at cost price 130 000 Water and electricity Additional information The following adjustments should be taken into account: 1 The owner withdrew goods for his own use of N$2 000. 2 The provision for doubtful debts should be adjusted to 5% of book debts. 3 The long-term loan was obtained from Standard Bank on 1 September 2011 at an interest rate of 14% per annum. No provision in respect of interest has yet been made. The rent for March is still outstanding and bookkeeping fees is N$400 per month 5 The telephone and water and electricity accounts for March 2012 of N$540 and N$200 respectively have not been paid. Depreciation on vehicles should be provided at 20% per annum on the reducing balance method. A new vehicle was purchased on 1 September 2011 for N$60 000. 7 Provide for depreciation on equipment at 10% per annum on the straight-line method. 8 A physical stock-taking on 31 March 2012 showed the following inventory on hand: Inventory N$72 000 Stationery N$200. Required Prepare an income statement for the year ended 31 March 2012. 290 4 6