Prepare the Statement of Comprehensive Income as at: 28 February 2021. Embassy Traders Pre-adjustment Trial Balance as at: 28 February 2021

	Debit	Credit
Balance Sheet Account section
Capital		1651100
Drawings	132900
Land and Buildings	1254800
Vehicles and Cost	925000
Equipment	662000
Acumalated Depreciation On Vehicles		528000
Acumalated Depreciation On equipment		369000
fixed deposist bob bank (9%p.a)	200000
trading inventory	152000
Debtors control	174800
Provisioning for bad debts		10000
bank	127800
creditors control		184800
Mortgage loan bob bank (18%p.a)		330000
Nominal Accounts section
Sales		2075000
Cost of Sales	795000
Sales returns	15000
Salaries and wages	586000
Bad debts	18000
Stationary	30000
Rates and taxes	58000
Motor expenses	32000
advertising	23000
telephone	44000
electricity and water	66000
bank charges	8000
insurance	5000
interest on mortgage loan	26000
interest on fixed deposit		15000
Rent income		171600
	5335300	5334500

Adjustments and additional information

1.Trading goods, cost R1 000, were donated to a school on 27 February 2021. This transaction has not yet been recorded. 2.A physical stocktaking on 28 February 2021 showed the following inventories on hand: 1.Trading inventory R148 000

2Stationery R4 000 1. Write off the account of debtor, R. Brown, R2 000. 2. The provision for bad debts must be decreased to R9 000.

3. Rent income amounts to R13 200 per month. Make the necessary adjustment.

4. The water and electricity account for February 2021, R7 000, was due to be paid on 3 March 2021.

5. Rates and taxes include an amount of R15 000 that was paid for the period 1 January 2021 to 3 March 2021.

6. An amount of R500 appeared in the February 2021 bank statement for bank charges. This amount was not recorded.

7. The investment in fixed deposit was made on 1 March 2019. Provide for the outstanding interest.

8. Provide for the outstanding interest on loan, R3 700.

9. A payment of R3 000 for insurance was erroneously debited to the advertising account.

10.Provide depreciation as follows:

1.On equipment at 10%, using the fixed instalment method.

2.On vehicles at 20%, using the diminishing balance method.