Milan Traders is a sole proprietor in Silverlakes Pretoria, who deals with importing and sellingof French furniture. The owner, Mila Nel, started the business on $1$ March $2010.$ The followingpre$-$adjustment trial balance of Milan Traders at $28$ February $2023$ was provided to you byMila since she asked for your assistance.

The following transactions took place:

$1.$ Inventory on $28$ February $2023$ amounted to R$166000.$

$2.$ No vehicles were purchased during the year, but a new computer system was bought oncredit from Delta Computers on $1$ February $2023$ for R$120000.$The old computer systemwas traded in for R$30000.$ The trade$-$in will take place when the new computer systemis fully operational. The cost price of the old system was R$60000$ and the book value on$1/3/2022$ was R$48000.$ This transaction was not yet recorded in the records at yearendsince the installation of the new computer was only completed on $28$ February $2023.$ Theowner paid the outstanding amount to Delta on $1$ March $2023.$

$3.$ The long$-$term borrowing is from XYZ Bank and was acquired on $1$ January $2023.$ It isre$-$payable in four equal annual payments, with the first payment on $28$ February $2024.$The interest rate is $5\%$ per annum and is secured by a personal guarantee of the owner$\mathrm{.}4.$ Mr Badboy, a debtor from Milan Traders, was declared insolvent and the outstandingamount of R$2280$ on his account must be written off.

$5.$ After inspecting the outstanding debtors list at year$-$end, Mila decided that there is apossibility that one of the debtors, Bali Traders, wont be able to pay their account. Theallowance for credit losses must be adjusted to make provision for the possible loss.The outstanding balance on Bali Traders account is R$7500.$

$6.$ The owner made an additional capital contribution of R$10000$ during the year.

$7.$ Depreciation on computer equipment and vehicles is calculated at $20\%$ per annum onthe straight$-$line method at year$-$endye.

$8.$ The fixed deposit is with ABC Bank from $1$ March $2022$ for $24$ months and carries interestat $10\%$ per annum. This amount has not yet been received.

Show all calculations. Round to the nearest Rand.

$1.$ Prepare the general journal entries for the following transaction numbers$1,3,4,5,6,7$ and $8.$ Journal narrations are required.

$2.$ Prepare the asset realisation account in the General Ledger of MilanTraders for the trade$-$in$.$

$3.$ Identify any four $(4)$ accounts to be disclosed in the Statement of profit orloss and other comprehensive income of the entity.

$4.$ Determine the net debtors amount that will appear on the Statement offinancial position of Milan Traders.

$5.$ True or false. The drawings account will be disclosed in the Statement ofprofit or loss and other comprehensive income. Motivate your answer.