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Answer ALL questions in this paper. [ 1 0 0 MARKS ] QUESTION 1 ( 2 0 Marks ) REQUIRED Use the information given below

Answer ALL questions in this paper.
[100 MARKS]
QUESTION 1
(20 Marks)
REQUIRED
Use the information given below to complete the following financial statements:
1.1
Statement of Comprehensive Income for the year ended 29 February 2024.
(12 marks)
1.2
Statement of Financial Position as at 29 February 2024.(Show the workings in brackets next to the relevant details.)
(8 marks)
Note: Some of the amounts have already been entered in the answer book.
INFORMATION
The following trial balance, adjustments and additional information were extracted from the records of Aerostat Traders for the financial year ended 29 February 2024:
AEROSTAT TRADERS
PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2024
Debit (R)
Credit (R)
Balance sheet accounts section
Capital
2449000
Land and buildings
1064000
Vehicles at cost
2850000
Equipment at cost
1650000
Accumulated depreciation on vehicles
1380000
Accumulated depreciation on equipment
540000
Debtors control/Accounts receivable
480000
Provision for bad debts/Allowance for credit losses
26000
Bank
358000
Creditors control/Accounts payable
615000
Mortgage loan: Med Bank (16% p.a.)
1050000
Nominal accounts section
Sales
7425000
Sales returns
45000
Opening stock
750000
Purchases
3900000
Salaries and wages
1290000
Bad debts
15000
Stationery
23000
Rent expense
345000
Motor expenses
267000
Bad debts recovered
13000
Telephone
93000
Electricity and water
186000
Bank charges
37000
Insurance
81000
Interest on mortgage loan
154000
Commission income
90000
13588000
13588000
ADDITIONAL INFORMATION AND ADJUSTMENTS
1.
Stocktaking on 29 February 2024 revealed trading inventory of R1000000 on hand:
2.
The rent expense amounted to R26000 per month for the period 01 March 2023 to 31 August 2023 and R27000 per month for the period 01 September 2023 to 31 March 2024. Make the necessary adjustment.
3.
A debtor who owed R20000 was declared insolvent. His account must now be written off.
4.
The provision for bad debts must be decreased to R23000.(Show a separate account for the change in the provision for bad debts in the statement of comprehensive income.)
5.
Provide for outstanding interest on the loan for the last month of the financial year. Interest is not capitalised.
6.
The telephone account for February 2024 was due to be paid on 02 March 2024, R8000.
7.
According to the bank statement, bank charges of R2000 were levied by the bank. This has not been recorded.
8.
Received R5000 from H. Keron whose account was written off as a bad debt previously. No entry was made for this.
9.
A debtor whose account was overdue for one month must be charged R100 interest.
10.
Provide for depreciation as follows:
10.1
On vehicles at 20% per year using the reducing balance method. Note: Vehicles that cost R650000 were purchased on 01 December 2023. The purchase has been recorded.
10.2
On equipment at 10% per year using the fixed instalment method.

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