Answer All the questions in this section. QUESTION 1 Prepare the statement of Comprehensive Income of Royal Traders for the year anded 28 February 2021. (20 Marta) INFORMATION The trial balance, adjustments and additional information given below were extracted from the accounting records of Royal Traders on 28 February 2021, the end of the financial year. ROYAL TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2021 Debit (R) Credit (R) Balance sheet accounts section Capital 301 000 Drawings 134 720 Vehicles at cost 360 000 Equipment at cost 240 000 Accumulated depreciation on vehicles 186 000 Accumulated depreciation on equipment Trading inventory Debtors control 62 000 Provision for bad debts Bank 42 800 cash float 1000 82 800 Creditos control 160 000 Mortgage loan: Leo Bank (18% pa) Nominal accounts section 1 000 000 Sales 480 000 Cost of sales 8 000 Sales retums 178 000 Salaries and Wages 2000 Bad debts 4000 Stationery 42 880 Rent expense Motor expenses Bad debts recovered 14 000 Telephone Electricity and water Bank charges insurance Interest on mortgage loan 10 000 Commission income 1811800 1811802 Adjustments and additional information According b the physical stod taking completed on 28 February 2021, the following inventories were on ha 1.1 Trading inventory, R136 000 Stationery, R600. 2 An account received from Airtel Fitters on 28 February 2021 for the installation of an air conditioning unit in of the vehides was debited to the motor expenses account in error, R6 000. No entry has been made for interest at 12% pa that was charged for two months on the overdue accounto debtor who owed R6 000. An electronic funds transfer for R1 330 was made to Royal Traders on 28 February 2021 from a debtor, after settlement discount of 5% was deducted. No entries have been made for this transaction. 5 The provision for bad debts must be decreased to R3 000. The telephone account for February 2021 was due to be paid on 02 Varch 2021, R1 400. Rent expense has been paid up to 31 March 2021. Note: The rental was increased by 10% with exted from 01 December 2020. Make the necessary adjustment. Interest on loan for February 2021 has not been paid, The insurance total includes an annual premium of R4 800 that was paid for the period 01 June 2020 to 3 May 2021. Cash deposit fees of R600 that appeared in the February 2021 bank statement were out in error when the cash joumals for February 2021 were prepared and posted. Provide for depreciation as follows: 111 On equipment at 10% per annum on cost. Note: Equipment that cost R20 000 was purchased on 01 September 2020. The purchase has been on venides at 20 per annum on the diminishing balance QUESTION 2 Prepare the catenent