Prepare the Statement of Comprehensive Income of Ozzie Traders for the year ended 28 February 2023. INFORMATION The pre-adjustment trial balance and additional information given below were extracted from the accounting records of OZZIE TRADERS on 28 February 2023, the end of the financial year. OZZIE TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2023

PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2023
	Debit (R)	Credit (R)
Balance sheet accounts section
Capital		750 000
Drawings	325 000
Vehicles at cost	1 000 000
Equipment at cost	600 000
Accumulated depreciation on vehicles		455 000
Accumulated depreciation on equipment		195 000
Trading inventory	320 000
Debtors control	165 000
Provision for bad debts		5 000
Bank	70 000
Cash float	10 000
Creditors control		200 000
Loan: Leo Bank (15% p.a.)		400 000
Nominal accounts section
Sales		2 500 000
Cost of sales	1 100 000
Sales returns	50 000
Salaries and wages	450 000
Bad debts	20 000
Consumable stores	10 000
Rent expense	195 000
Motor expenses	65 000
Bad debts recovered	5 000
Telephone	40 000
Electricity and water	50 000
Bank charges	15 000
Insurance	20 000
Interest on mortgage loan	25 000
Commission income		20 000
	4 530 000	4 530 000

Adjustments and additional information 1. According to physical stocktaking undertaken on 28 February 2023, trading inventory on hand amounted to R300 000. 2. Consumable stores used during the financial year amounted to R9 500. 3. No entry has been made for a commission of 10% earned but not received on items that were sold for R125 000. 4. Received and recorded an amount of R3 000 from an insolvent debtor, P. Phillips, who owed R5 000. The balance of her account must now be written off. 5. The provision for bad debts must be increased by R3 250. 6. The telephone account for February 2023 was due to be paid on 03 March 2023, R4 000. 7. Rent has been paid for the period 01 March 2022 to 31 March 2023. Make the necessary adjustment. 8. The loan from Westpac Bank was obtained on 01 September 2022. Provide for the outstanding interest. (Interest is not capitalised.) 9. The insurance total includes an annual premium of R7 500 that was paid for the period 01 July 2022 to 30 June 2023. 10. The bank statement for February 2023 reflected bank charges of R1 000 that was not recorded. 11.The electricity and water account was erroneously debited with an amount of R10 000 for the personal electricity account of the proprietor that was paid with the funds of the business. 12.Provide for depreciation as follows: 12.1 On equipment at 10% per annum on cost. 12.2 On vehicles at 20% per annum on the diminishing balance. 13. An account received from General Motors to repair the delivery vehicle of the business has not been recorded, R15 000.

Answer Sheet:

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2023
	Workings (If any)	R
Sales
Cost of sales
Gross profit
Other operating income
Bad debts recovered
Commission income
Gross operating income
Operating expenses
Salaries and wages
Bad debts
Consumable stores
Rent expense
Motor expenses
Telephone
Electricity and water
Bank charges
Insurance
Operating profit
Interest income
Interest expense
Net profit for the year