Dan Steel has a plumbing business that is growing in reputation. He has 2 qualified plumbers

that work with him. He approached you to update his financial reports as he is planning to

expand his business and quoting for more work. D Steel Plumbers has a financial year-end of

31 August. The trial balance at this date is provided as follows:

Trial balance for year ended 31 August 2022;

Debit - R

Credit – R

Motor vehicles at cost - Debit 95 000

Accumulated depreciation: motor vehicles- Credit 10 000

Debtors control -Debit 11 050

Bank: ABSA- Debit 18 500

Bank: FNB- Credit 1 200

Allowance for credit loss- Credit 2 105

Equipment at cost- Debit 82 000

Accumulated depreciation: equipment- Credit 2 100

Creditors control- Credit 8 000

Accrued expenses- Credit 1 500

Capital – D Steel

34 800

Rental income- Credit 5 250

Income received in advance- Credit 3 200

Consumable expense- Debit 59 300

Water and electricity- Debit 13 200

Cleaning- Debit 4 100

Services rendered- Credit 308 000

Credit loss- Debit 7 305

Settlement discounts allowed- Debit 3 500

Salaries and wages- Debit 65 250

Printing and stationery- Debit 16 950

Additional Information: The following transactions have not been recorded:

1. A debtor was refunded R1 000 for overpayment of his account.

2. The municipality emailed the August 2022 electricity account amounting to R2 300

on 4 September 2022.

3. A Settlement discount received of R2 100 received on purchases of consumables was

posted incorrectly to the debit side of the Settlement discount allowed account.

4. Stationery of R1 750 is on hand at year-end.

5. Physical stock of consumables at 31 August 2022 was valued at R23 800.

6. Provide for depreciation for the year as follows:

Motor vehicles: R4 750; and

Equipment: R4 100.

REQUIRED:

You are required to prepare the Statement of Profit or Loss and other comprehensive income

for the year ended 31 August 2022 for D Steel Plumbers in compliance with International

Financial Reporting Standards in as much as the information allows.