Answer ALL questions.

QUESTION $1$

$(100$ MARKS$)$

$(20$ Marks$)$

REQUIRED

Prepare the Statement of Comprehensive Income of Ryobi Traders for the year ended $29$ February $2024.$

INFORMATION

$\backslash$table$[[$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$,6000,]]$ 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$.$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

$6000$

Rent expense

$66000$

Bad debts recovered

$4000$

Telephone

$18000$

Bank charges

$10000$

Interest on loan

$18000$

Commission income

$18000$

$2717600$

$2717600$

Additional information and adjustments

$1.$

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

$1\mathrm{.}1$

Trading inventory, R$200000$

$1\mathrm{.}2$

Stationery, R$600.$

$2.$

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

$3.$

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

$4.$

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

$5.$

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

$6.$

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

$7.$

According to the bank statement service fees of R$600$ were levied by the bank. This has not been recorded.

$8.$

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

$9.$

A debtor whose account was overdue for one month must be charged interest at $12\%$ p$.$a$.$ on the account balance of R$10000.$

$10.$

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$.$