QUESTION 1 [20 MARKS] Lesego owns and operates a logistics business operating in most major cities in South Africa. He presents you with a trial balance as at 31 July 2020 as below: Lesego's Logistics Trial Balance as at 31 July 2020 R R Bank loan due 2022 500 000 Cash in hand 4 600 Drawings 415 800 Drivers' wages 954 200 Furniture & Equipment at cost 185 000 Provision for depreciation 1 August 2016 37 000 Bank overdraft 45 100 Capital 1 671 200 Goodwill 250 000 Insurance 143 400 Interest on loan 33 200 Loss on sale of vehicle 7 600 Office expenses 55 700 Rent 222 400 Revenue 1 743 300 Provision for vehicle depreciation 1 August 360 000 2016 Trade payables 6 400 Fuel 227 300 Vehicle repairs 56 100 Vehicles at cost 1 800 000 Trade receivable 7 700 4 363 000 4 363 000 Added information at 31 July 2020: . Drivers' wages that were due but not yet paid amounted to R14,500 and insurance was prepaid by R8,600. Depreciation policy on furniture and equipment is a straight-line method at 20% p.a. and on vehicles is 20% p.a, reducing balance method. Assume a tax rate of 28% and that tax is payable in the year the profit is made. Required to prepare: . Statement of profit or loss and other comprehensive income for the year ended 31 July 2020