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Enchanted Ltd has an authorised share capital of 6 0 0 0 0 0 ordinary shares. Their financial year ends on the last day of

Enchanted Ltd has an authorised share capital of 600000 ordinary shares. Their financial year ends on the last day of February. The following pre-adjustment trail balance appeared in the books of Enchanted Ltd on 28 February 2023
Pre adjustment trial balance of Enchanted Ltd on February 2023
Details Fol Debit (R) Credit (R)
Statement of financial Position (877500)
Ordinary share capital (64530)
Retained earnings 720000
Land and buildings 279000
Vehicles (38700)
Accumulated depreciation: Vehicles 106200
Trading inventory 82000
Trade receivablles (2790)Allowance for credit losses 285200
Bank 165690
SA Revenue Service (income tax)(73800)
Trade payables (112500)
Mortgage loan
Nominal account section
Sales (1636654.50)
Cost of sales 1043100
Credit losses (5674.50)
Commission received 3915
Bank charges 4185
Rent income (108000)
Stationery 3105
Credit losses recovered (1845)
Interest on mortgage loan 10800
Sales returns 17100
Insurance 6030
Telephone 8550
Water and electricity 12600
Salaries and wages 126000
Ordinary share dividends 45000
Total 2920234.50
Total (2920234.50)
Adjustments and additional information:
1 L. Letsema, a debtor who owed R5400, is declared insolvent. The enterprise received 50c in the rand from her insolvent estate and this was recorded. Write the rest off as irrecoverable.
2 The allowance for credit losses must be maintained at 3% of good book debtors.
3 Insurance included an annual premium of R2700 that ws paid on 30 April 2021.
4 Part of the building is rented at R10800 per month. Make provisions for the outstanding rent
5 According to a physical stocktaking, trade inventory on 28 February 2023 was R103050.
6 The water and electricity account for February 2023 has not yeat been paid R1152.
7 Provide for depreciation on vehicles at 20% per annum on the diminishing balance method.1 August each year. Interest accrues at 16% per annum
8 The mortgage loan is redeemable in equal annual instalments of R22500 on 31 August each year. Interest is 16% per annum
9 A final divided of 20c per share was declared on 28 February 2023
10 The income tax for the accounting period amounts to R202500
11 During the year ended 28 February 2023, an additional 100000 ordinary shares were issued at a price of R1.875 per share
12 On 1 March 2021 there were 440000 ordinary shares in issue.
Required:
3.1 Prepare the statement of profit or loss and other comprehensive income for Enchanted Ltd for the year ended 28 February 2023.

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