Prepare the Income Statement for the year end 29 February 2016

INCOME STATEMENT AND NOTE FOR TRADE AND OTHER RECEIVABLES (65 marks; 40 minutes) You are provided with information taken from the books of MM Traders. Their financial year ends on 29 February 2016. REQUIRED: 2.7 Prepare the Income Statement for the year ended 29 February 2016. (54) 2.2 Propare the trade and other receivables note for the year ended 29 February 2016. (11) INFORMATION: Pre-Adjustment Trial Balance on 29 February 2016: BALANCE SHEET SECTION Capital: Mciol Dobli Credit Capital: Meyer 380- DDO Current account: Molol 175 000 Current account: Meyer 20 DDO Drawings: Molal 25 500 Drawings: Meyer 149 000 Vehicles (al coal) 135 GCO Equipment fat cust! 176 0CO Accumulated dopreciation on vehicles 230 530 (1/3/2015) 83 60C Accumulated depreciation on equipment (1/3/2015) Loan : Bank of Africa Fixed Deposit: Hank of America 10% pa 187 000 Trading stock 150 COO Debtors control 70 050 Provision for bad debts 182 640 2 400 Bank Petty cash 161 048 350 Creditors control 32 650 NOMINAL ACCOUNTS SECTION Sales 1 520 000 Cost of sales 600 000 Debtors allowances 23 800 Rent Income 80 200 Salaries and wages 264 000 Employer's contribution 30 800 Bad debts 13 200 Water and electricity 48 900 Discount allowed 2 430 Telephone 17 800 Insurance 28 800 Packing material 18 206 Bank charges 4 846 Interest on loan ? interest on fixed deposit 13 750 2 620 000 2 620 000