Additional information and adjustments

Physical stocktaking on $29$ February $2024$ revealed the following inventories:

$1\mathrm{.}1$ Trading inventory, R$200000$

$1\mathrm{.}2$ Stationery, R$600.$

Rent has been paid up to $31$ January $2024.$ Make the necessary adjustment.

A debtor who owed R$2000$ was declared insolvent. His account must now be written off.

The provision for bad debts must be decreased by R$8400.$

Provide for the outstanding interest on the loan from Mi Bank, R$15600.$

The telephone account for February $2024$ was due to be paid on $02$ March $2024,$ R$1800.$

According to the bank statement service fees of R$600$ were levied by the bank. This has

not been recorded.

Received R$6000$ from H$.$ Lino whose account was previously written off. No entry was

made for this.

A debtor whose account was overdue for one month must be charged interest at $12\%$ p$.$a$.$

on the account balance of R$10000.$

Provide for depreciation as follows:

$10\mathrm{.}1$ On vehicles at $20\%$ per annum using the diminishing balance method.

$10\mathrm{.}2$ On equipment at $10\%$ per annum on cost$.$Answer ALL questions. $(100$ MARKS$)$ QUESTION $1(20$ Marks$)$ REQUIRED Prepare the Statement of Comprehensive Income of Ryobi Traders for the year ended $29$ February $2024.$ INFORMATION $[[$RYOBI TRADERS$],[$PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $29$ FEBRUARY $2024],[,$Debit $($R$),$Credit $($R$)],[$Balance sheet accounts section$],[$Capital$,,481400],[$Drawings$,228000,],[$Vehicles at cost$,560000,],[$Equipment at cost$,340000,],[$Accumulated depreciation on vehicles,,$276000],[$Accumulated depreciation on equipment,,$108000],[$Trading inventory,$208000,],[$Debtors control,$98000,],[$Provision for bad debts,,$13200],[$Bank$,71600,],[$Creditors control,,$123000],[$Loan: Mi Bank $(16\%$ p$.$a$.),,210000],[$Nominal accounts section$],[$Sales$,,1484000],[$Cost of sales,$720000,],[$Sales returns,$10000,],[$Salaries and wages,$258000,],[$Motor expenses,$52000,],[$Electricity and water,$38000,],[$Insurance$,14000,],[$Bad debts,$2000,],[$Stationery$,6000,]]$ REQUIRED

Prepare the Statement of Comprehensive Income of Ryobi Traders for the year ended $29$ February

INFORMATION Additional information and adjustments

Physical stocktaking on $29$ February $2024$ revealed the following inventories:

$1\mathrm{.}1$ Trading inventory, R$200000$

$1\mathrm{.}2$ Stationery, R$600.$

Rent has been paid up to $31$ January $2024.$ Make the necessary adjustment.

A debtor who owed R$2000$ was declared insolvent. His account must now be written off.

The provision for bad debts must be decreased by R$8400.$

Provide for the outstanding interest on the loan from Mi Bank, R$15600.$

The telephone account for February $2024$ was due to be paid on $02$ March $2024,$ R$1800.$

According to the bank statement service fees of R$600$ were levied by the bank. This has

not been recorded.

Received R$6000$ from H$.$ Lino whose account was previously written off. No entry was

made for this.

A debtor whose account was overdue for one month must be charged interest at $12\%$ p$.$a$.$

on the account balance of R$10000.$

Provide for depreciation as follows:

$10\mathrm{.}1$ On vehicles at $20\%$ per annum using the diminishing balance method.

$10\mathrm{.}2$ On equipment at $10\%$ per annum on cost$.$