QUESTION $1$

$(20$ Marks$)$

REQUIRED

Use the information given below to complete the following financial statements:

$1\mathrm{.}1$ Statement of Comprehensive Income for the year ended $29$ February $2024.$

$(12$ marks$)$

$1\mathrm{.}2$ Statement of Financial Position as at $29$ February $2024.($Show the workings in

brackets next to the relevant details.$)$

Note: Some of the amounts have already been entered in the answer book.

INFORMATION

The following trial balance, adjustments and additional information were extracted from the records of Aerostat

Traders for the financial year ended $29$ February $2024$:

ADDITIONAL INFORMATION AND ADJUSTMENTS

$1.$ Stocktaking on $29$ February $2024$ revealed trading inventory of R$1000000$ on hand:

$2.$ The rent expense amounted to R$26000$ per month for the period $01$ March $2023$ to $31$ August $2023$

and R$27000$ per month for the period $01$ September $2023$ to $31$ March $2024.$ Make the necessary

adjustment.

$3.$ A debtor who owed R$20000$ was declared insolvent. His account must now be written off.

$4.$ The provision for bad debts must be decreased to R$23000.($Show a separate account for the change

in the provision for bad debts in the statement of comprehensive income.$)$

$5.$ Provide for outstanding interest on the loan for the last month of the financial year. Interest is not

capitalised.

$6.$ The telephone account for February $2024$ was due to be paid on $02$ March $2024,$ R$8000.$

$7.$ According to the bank statement, bank charges of R$2000$ were levied by the bank. This has not been

recorded.

$8.$ Received R$5000$ from H$.$ Keron whose account was written off as a bad debt previously. No entry

was made for this.

$9.$ A debtor whose account was overdue for one month must be charged R$100$ interest.

$10.$ Provide for depreciation as follows:

$10\mathrm{.}1$ On vehicles at $20\%$ per year using the reducing balance method. Note: Vehicles that cost R$650000$

were purchased on $01$ December $2023.$ The purchase has been recorded.

$10\mathrm{.}2$ On equipment at $10\%$ per year using the fixed instalment method.