Prepare the Statement of profit or loss and other comprehensive income for Rooibos Merchant Ltd for the year ended 31 December 2020.

atominancial laten CUINS Question 1 Study the scenario and complete the question that follow Rooibos Merchant Ltd Rooibos Merchant Ltd is a manufacturer and distributor of Rooibos. It has a 31 December year end. The financial accountant, Dave Millan, has taken sick leave. The directors have called you in to assist with year-end work and you manage to locate various documents and other information. Extracts from the trial balance as at 31 December 2020 are as follows: Dr. Cr. R Share capital 500 000 Drawings 60 000 Revenue 12 900 000 225 000 Interest expense (This amount excludes interest on Mortgage Bond Loan.) Interest received 150 000 Commission received 450 000 12% Mortgage bond loan 2 000 000 Bank 260 000 1 750 000 Inventory Machinery at cost Accumulated depreciation - 31 December 2015 3 000 000 450 000 Advertising costs 890 000 Administrative costs 260 000 Cost of sales 6289 000 General expenses 100 000 Credit losses 200 000 Salaries 2 500 000 590 000 Insurance Land at cost 800 000 Trade receivables 210 000 Prepaid expenses 66 000 Trade creditors 750 000 17 200 000 17 200 000 Additional 1. Revenue includes local dividends received of R20 000 2. The mortgage bond was taken out many years ago at a fixed-term interest rate of 12% per annum. Half of the mortgage bond is due to be repaid on 30 June 2021. The balance is due to be repaid a year later. Interest on the mortgage bond for the year ended 31 December 2020 still needs to be accounted for and is payable at the end of March 2021. 3. Included in revenue is an amount of R200 000 that relates to contract work still to be performed in January and February 2021 but was received in December 2020. 4. Depreciation on machinery must still be provided for at 20% per annum on the diminished balance. 5. Salaries not yet paid for December 2020 amounted to R250 000. Source: Makumire. 1. (2020) Required Prepare the Statement of profit or loss and other comprehensive income for Rooibos Merchant Ltd for the year ended 31 December 2020. (20 Marks)