Answer ALL questions in this paper.

$[100$ MARKS$]$

QUESTION $1$

$(20$ MARKS$)$

REQUIRED

Use the information provided below to prepare the Statement of Comprehensive Income for the year ended

$28$ February $2023.$

INFORMATION

FIESTA TRADERS

PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $28$ FEBRUARY $2023$

Debit $($R$)$

Credit $($R$)$

Balance Sheet accounts section

Capital

$2520000$

Drawings

$160000$

Land and buildings

$1800000$

Vehicles at cost

$1360000$

Equipment at cost

$1000000$

Accumulated depreciation on vehicles

$760000$

Accumulated depreciation on equipment

$320000$

Fixed deposit: Rio Bank $(10\%$ p$.$a$.)$

$300000$

Trading inventory

$230000$

Debtors control

$260000$

Provision for bad debts

$16000$

Bank

$134000$

Cash float

$12000$

Creditors control

$220000$

Mortgage loan: Rio Bank $(12\%$ p$.$a$.)$

$640000$

Nominal accounts section

Sales

$3000000$

Cost of sales

$960000$

Sales returns

$20000$

Salaries and wages

$838000$

Bad debts

$24000$

Stationery

$40000$

Rates and taxes

$116000$

Motor expenses

$180000$

Repairs to building

$34000$

Telephone

$76000$

Electricity and water

$92000$

Bank charges

$16000$

Insurance

$40000$

Interest on mortgage loan

$66000$

Interest on fixed deposit

$12000$

Rent income

$270000$

$7758000$

$7758000$

Adjustments and additional information

$1.$

Stocktaking on $28$ February $2023$ revealed the following inventories:

$1\mathrm{.}1$

Trading inventory R$220000$

$1\mathrm{.}2$

Stationery R$4000$

$2.$

The telephone account for February $2023,$ R$6000,$ was due to be paid on $01$ March $2023.$

$3.$

A debtor who was declared insolvent paid R$900$ which represented $30\%$ of her debt. The balance of her account must now be written off.

$4.$

The provision for bad debts must be decreased to R$14000.$

$5.$

Rent has been received up to $31$ March $2023.$ Note: The rental was increased by R$2000$ per month with effect from $01$ November $2022.$

$6.$

The insurance total includes an annual premium of R$15000$ that was paid for the period $01$ June $2022$ to $31$ May $2023.$

$7.$

Provide for outstanding interest on the mortgage loan for February $2023.$

$8.$

Provide for the outstanding interest on fixed deposit. The investment in fixed deposit was made on

$01$ September $2022.$

$9.$

A payment for the annual service of a motor vehicle was not recorded, R$5000.$

$10.$

Provide for depreciation as follows:

$10\mathrm{.}1$

On equipment at $10\%$ p$.$a$.$ on cost$.$

$10\mathrm{.}2$

On vehicles at $20\%$ p$.$a$.$ using the diminishing balance method. Note: A vehicle with a cost price of R$360000$ was purchased on $01$ December $2022.$ The purchase has been recorded.

QUESTION $2$

$(20$ MARKS$)$

REQUIRED

Use the information provided below to prepare the Statement of Financial Position of Trent Limited as at $31$ July $2023.$ The notes to the financial statements are not required.

INFORMATION

TRENT LTD

Extract of PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $31$ JULY $2023$

Balance Sheet Accounts Section

Debit $($R$)$

Credit $($R$)$

Ordinary share capital $(200000$ shares$)$

$4000000$

Retained earnings

$589200$

Land and buildings

$3904100$

Vehicles $($cost$)$

$1400000$

Equipment $($cost$)$

$900000$

Accumulated depreciation on vehicles

$510000$

Accumulated depreciation on equipment

$397000$

Debentures $(12\%$ p$.$a$.$; Maturity date $31$ July $2028)$

$1700000$

Investment $(25000$ shares in ABC Limited$)$

$500000$

Trading inventory

$1090000$

Debtors control

$360000$

Provision for bad debts

$30000$

Bank

$287000$

Creditors control

$484000$

South African Revenue Services: Company tax

$140000$

Adjustments and additional information

The profit after tax for the year ended $31$ July $2023$ amounted to R$392100.$ The following adjustments were made to the income and expenses but not to the balance sheet accounts:

$1.$

A physical stocktake on $31$ July $2023$ revealed the following:

$1\mathrm{.}1$

Trading inventory on hand amounted to R$1050000.$

$1\mathrm{.}2$

Stationery unused amounted to R$2000.$

$2.$

Rent for August $2023$ was received and recorded on $31$ July $2023,$ R$14000.$

$3.$

Dividends of $70$ cents per share are due from ABC Limited.

$4.$

Commission on sales of R$30000$ is owed to the salespersons.

$5.$

Equipment, cost price R$120000,$ was purchased on credit on $01$ July $2023$ but no entry has been made for this. Depreciation on equipment is calculated at $15\%$ p$.$a$.$ on cost and on vehicles at $20\%$ p$.$a$.$ on the diminishing balance.

$6.$

The bank statement was received after the trial balance was prepared and it reflected bank charges of R$1800.$

$7.$

The provision for bad debts must be adjusted to $5\%$ of debtors.

$8.$

Two of the directors of the company are owed remuneration of R$20000$ each.

$9.$

Based on the profit for the year, an amount of R$30000$ is still owed to South African Revenue Services for company tax.

$10.$

The directors declared a final dividend of $12$ cents per share. The interim dividend amounted to R$100000.$

QUESTION $3$

$(20$ MARKS$)$

REQUIRED

Use the information provided below to prepare the Statement of Changes in Equity of Sunray Traders for the year ended $28$ February $2023.$

INFORMATION

EXTRACT FROM THE LEDGER OF SUNRAY TRADERS AS AT $28$ FEBRUARY $2023$