Eric Ngidi the sole proprietor of a general dealer, Welcome Traders, provided you with the

following relevant accounting records for the financial year ended $28$ February $2023.$

Additional information and adjustments:

Physical stocktake was done on $28$ February $2023$ and inventories were valued at cost as

follows: Inventories: Merchandise $($Trade goods$)$ R$103500$

Inventories: Consumable items $,$ R $300$

Rates and taxes included a payment of R$6120$ for the $6$ month period $1$ January $2023$ to $30$

June $2023.$

The rent income for February $2023$ is still outstanding. The monthly rent did not change for

the period $1$ March $2022$ to $31$ January $2023.$ However, the rent for February $2023$ must be

increased by $10\%$ and recorded as outstanding at $28$ February $2023.$

A Debtor, A Noddy, who owed R$1200$ was declared insolvent and his estate declared a

payment of $60$ cents in the Rand. The amount received was correctly recorded. However, the

balance of the account must now be written off as a credit loss.

The allowance for credit losses must be adjusted to $5\%$ of outstanding Debtors.

On $25$ February $2023,$ an Electrical Fund Transfer $($EFT$)$ deposit of R$2250$ was made by E

Lucky, a debtor whose account was previously written off. No entries have been made.

Provide for depreciation of Equipment at $10\%$ per year using the diminishing balance method.

The purchase on $1$ February $2023$ of Equipment costing R$45000$ has not yet been recorded.

The telephone account of R$900$ for February $2023,$ has not been recorded nor paid.

The fixed deposit at Bold Bank was made on $1$ July $2022$ and matures on $31$ August $2023.$

Interest on the fixed deposit is received on a monthly basis.

A portion of the interest on the Long term borrowing has been paid in advance. The loan was

obtained on $28$ February $2022.$ Equal annual repayments of R$15000$ will commence on

$1$ March $2023.$

Required:

Prepare the statement of profit or loss and other comprehensive income for the financial year

ended $28$ February $2023$ to comply with International Financial Reporting Standards $($IFRS$)$

appropriate to this entity and its type of business. Show all workings.