4 [26] Modelo Manufacturers provided the following trial balance on 28 February 2022, the last day of the financial year: Pre-adjustment trial balance for the year ending 28 February 2022 DEBIT CREDIT Capital (01/03/2021) B1 R386 744 Drawings B2 R12 647 Loan SA bank (10%) B3 R150 000 Motor vehicles at cost B4 R234 500 Accumulated depreciation: Motor vehicles B5 R17 360 Furniture at cost B6 R114 600 Accumulated depreciation: Furniture B7 R12 680 11% fixed deposit - ABC Bank B8 R250 000 Inventory (01/03/2021) Debtors control Bank Creditors control Sales B9 R20 230 B10 R16 450 B11 R18 892 B12 R24 790 N1 R202 539 Sales returns N2 R3 624 Purchases Purchases returns Commission income N3 R49 085 N4 R1 985 N5 R15 987 Rental income N6 R47 450 Bank charges N7 R1 658 Repairs and maintenance N8 R13 985 Salaries and wages N9 R65 980 Stationery N10 R6 981 Telephone N11 R24 953 Travel N12 R25 950 R859 535 R859 535 Additional information not yet considered: 1. 2. A physical stocktake was performed on 28 February 2022. The value of the stock on this date was R26 955. Depreciation must be provided for as follows: Vehicles at a rate of 25% using the straight-line method Furniture at a rate of 15% on the diminishing balance 3. 4. 5. 6. 7. After consideration of the trade receivables (debtors), it was decided to raise an allowance for credit losses, being 2% of outstanding debtors. The entity has not previously had an allowance for credit losses. The rent for March 2022, R3 650, was received and banked before 28 February 2022. The interest on the fixed deposit for the current year still needs to be taken into account. The fixed deposit has already been made in the previous financial year. No additional amounts have been deposited in the account throughout the financial year. The loan from SA Bank was received on 1 December 2021. The interest on the loan must still be recorded. The telephone account for February 2022 was received after the trial balance had been prepared and has not been paid yet, R1 974. Required: Use the information provided to prepare a statement of profit or loss and other comprehensive income for the period ended 28 February 2022. Include the trading, and profit and loss accounts, clearly showing the gross and net profits, respectively. Ignore VAT. SHOW ALL YOUR CALCULATIONS