III. IV. V. Manyi's Limited's statement of financial position on 31 March 2020, is presented below. Manyi's Limited Ltd. Statement of Financial Position's ledger balances as of 31 March 2020 (Figures in "000") Equipment R 43,000 Share capital-ordinary R 20,000 Prepaid insurance 5,600 Retained earnings 18,600 Inventory 25,750 Bonds payable 50,000 Bank 30,500 Accounts payable 13,750 R104,850 Interest payable 2.500 R104,850 During the reporting period ended 31 March 2021, the following transactions occurred. 1. Jimi paid R2 500 000 interest on the bonds on 1 April 2020. Jimi purchased R241 500 000 (VAT inclusive) of inventory on account. Jimi sold for R448 500 000 (VAT inclusive) on online transactions inventory which cost R230 000 000 Jimi paid R230 000 000 on accounts payable. Jimi paid R2 500 000 interest on the bonds on 1 October 2021. The prepaid insurance (R5 600 000) expired on 31 October. Received applications for 500 000 ordinary shares on 31 October. Share applicants paid the stated value of R5 per share. The allotment took place on 28 November 2020. The company has authorised share capital of 5 000 000 ordinary shares and 1 000 000, 5% Preference shares. No preference shares have been issued. On 1 November, Jimi paid R12 000 000 for insurance coverage from 1 November 2020, through 31 October 2021. Jimi paid R27,000 000 in VAT to the SARS. Paid other operating expenses, R91,000 000 (relating to non-taxable expense items) Paid share issue costs of R 71 875(VAT inclusive). Redeemed the bonds on 31 March 2021, by paying R47 000 000 plus R2 500 000 interest. Received applications for R90,000 000 of 8% bonds on 30 March 2021, issued at 104. The directors allotted the bonds on 31 March. The bonds pay interest every 31 March with effect from 31 March 2022. Declared dividends on 20 March 2020 of 50 cents per share. The dividends are payable to shareholders on record on 20 April 2021. The shareholders' register closes seven days after the board resolution is adopted and communicated VI. VII. VIII. IX. X. XI. XII. XIII. XIV. Adjustment data: Recorded the insurance expired from item VI. The equipment was acquired on 31 March 2020 and will be depreciated on a straight-line basis over 5 years with an R3,000 000 residual value. The company faces an income tax rate of 28c in every R1 of before-tax profits. You are required to: a) Set up well-labelled T-accounts to process the transactions provided (including adjusting journal entries) and determine ending balances on each general ledger account. Use transaction numbers as your dates. [42 Marks, 2 marks for transaction references] b) Use the relevant ledger balances in (a) to prepare a statement of profit or loss for the reporting period ending 31 March 2021. [6 marks]