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. Adjustments and additional information 1. Stocktaking on 28 February 2023 revealed the following inventories: 1.1 Trading inventory R220 000 1.2 Stationery R4 000 2. The telephone account for February 2023, R6 000, was due to be paid on 01 March 2023. 3. A debtor who was declared insolvent paid R900 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 R14 000 . 5. Rent has been received up to 31 March 2023. Note: The rental was increased by R2 000 per month with effect from 01 November 2022. 6. The insurance total includes an annual premium of R15 000 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, R5 000 . 10. Provide for depreciation as follows: 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, R5 000 . 10. Provide for depreciation as follows: 10.1 On equipment at 10% p.a. on cost. 10.2 On vehicles at 20% p.a. using the diminishing balance method. Note: A vehicle with a cost price of R360 000 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 Adjustments and additional information The profit after tax for the year ended 31 July 2023 amounted to R392 100. 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: 1.1 Trading inventory on hand amounted to R1 050000 . 1.2 Stationery unused amounted to R2 000. 2. Rent for August 2023 was received and recorded on 31 July 2023, R14 000. 3. Dividends of 70 cents per share are due from ABC Limited. 4. Commission on sales of R30000 is owed to the salespersons. 5. Equipment, cost price R120 000, was purchased on credit on 01 July 2023 but no entry has been made 6. The bank statement was received after the trial balance was prepared and it reflected bank charges of R1 800 . 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 R20000 each. 9. Based on the profit for the year, an amount of R30000 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 R100 000 . 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. 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 The following must be considered: (a) On 28 February 2023 the Statement of Comprehensive Income reflected a net profit of R1 400000. (b) The partners are entitled to interest at 15% p.a. on their capital balances. Note: Raymond decreased his capital contribution by R200 000 on 31 August 2022 whilst Sunny increased his capital balance by the same amount on 01 December 2022. These capital changes have been recorded. (c) The partners are entitled to the following monthly salaries: Sunny R25 000 Raymond R20 000 (d) Raymond is entitled to a bonus equal to 10% of his annual salary. (e) The remaining profit/shortfall must be shared between Sunny and Raymond in the ratio of the capital balances as at the beginning of the financial year. QUESTION 4 (20 MARKS) REQUIRED Use the information provided below to prepare the Cash Flow Statement of Alto Limited for the year ended 31 December 2022. INFORMATION The following amounts were obtained from the Statement of Comprehensive Income for the year ended 31 December 2022 and Statement of Financial Position of Alto Limited as at 31 December 2022 and 31 December 2021: December 2022. INFORMATION The following amounts were obtained from the Statement of Comprehensive Income for the year ended 31 December 2022 and Statement of Financial Position of Alto Limited as at 31 December 2022 and 31 December 2021: Note: - Dividends paid and recommended during 2022 amounted to R300 000. - All purchases and sales of inventories are on credit. - Some of the investments were redeemed during the financial year ended 31 December 2022. - Debtors are granted credit terms of 30 days