Please help with question 2 as I prepare of exams please. please provide solution for question 2.

QUESTION 2 (65 marks) Retained earnings (Note 1) 1 323 000 1 735 000 Total equity 5 486 000 4 990 100 The following are extracts from the Statement of Comprehensive Income of Lilliput's Travels CC as well as the Statement of Financial Position of Lilliput's Travels CC for the financial year ended 30 June 2022: Non-current liabilities 1 000 500 925 000 Statement of Financial Position as at 30 June 2022 Long-term loans from members 1 000 500 925 000 ASSETS 2022 2021 R R Current Liabilities 940 000 2 096 700 Non-current assets 4 703 500 6 149 200 Trade payables 348 000 1 337 000 Land at cost 1 500 000 Distributions to members payable 279 000 362 000 Vehicles (carrying value) 2 250 000 2 350 500 Income tax payable 237 000 397 700 Furniture (carrying value) 1 253 500 1 398 700 Bank overdraft 76 000 Investment: Fixed deposit 7% p.a. 1 200 000 900 000 Total liabilities 1 940 500 3 021 700 Total equity and liabilities 7 426 500 8 011 800 Current assets 2 723 000 1 862 600 Inventory 1 328 000 814 100 An extract of the Statement of Comprehensive Income for the year ending 30 June 2022: Trade receivables 1 395 000 965 500 R Cash and cash equivalents 83 000 Profit before taxation 1 345 600 Total assets 7 426 500 8 011 800 Income tax expense for the year 376 768) Net profit for the period 968 832 EQUITY AND LIABILITIES Members' interest 5 486 000 4 990 100 Members' contributions 4 163 000 3 255 100Note 1 Retained earnings capital contribution in the accounting records of the CC. This was the only addition R and disposal of vehicles for the financial year. Balance as at 1 July 2021 1 735 000 . Furniture with a carrying amount of R 30 000 was disposed of for R25 000, Net profit for the period 968 832 whereas one new item of furniture was purchased during the financial year. There Distributions to members for the year (declared) (1 380 832) were no other purchases or disposals of furniture. A leak in one of the water pipes caused certain furniture to be damaged. It was thus decided to impair the furniture Balance as at 30 June 2022 1 323 000 by R25 000. Depreciation of all furniture during the financial year (including that of the furniture disposed and purchased) totaled R180 200. Additional information of transactions that occurred during the financial year and which were correctly accounted for: . There were no other transactions affecting property, plant, and equipment during The members of Lilliput's Travels CC are satisfied with the interest return the entity the financial year other than those mentioned above. All assets have a zero received from their fixed deposit and thus decided to invest more on 1 March 2022. residual value. All investment and interest transactions were completed in cash. The accounting policy is to measure and disclose all land and vehicles on the cost . The only change in the loans from members was an additional loan amount model but the equipment on the revaluation model. provided by a member on 1 January 2022. The loans from the members bear interest at a rate of 12% per annum. Interest for REQUIRED: the 2022 financial year was paid in cash to the members. Prepare the Statement of Cash Flows of Lilliput's Travels CC for the financial year ended 30 June 2022. . The following gains were made during the financial year. See further information Ignore VAT. Show all workings clearly. in bullets below: (65 marks) o Gain on sale of land R330 000 o Gain on sale of a travel minibus R45 000 Aligns to SAICA competencies: Financial reporting: In accordance with International Financial Reporting The only land owned by Lilliput's Travels CC was sold during the financial year. D1.1 Standards (IFRS) Prepare, analyse and evaluate general purpose financial statements in During the financial year, a travel minibus with a carrying value of R435 000 was accordance with IFRS for an entity, which could be a for-profit entity, an SME, a public sector entity or a not-for-profit entity sold in order to replace it with a new, more fuel-efficient bus. One of the members decided to contribute this new travel minibus from his personal capacity to the close corporation("CC") at a cost of R755 000. The transaction was recorded as a