Question $1$

$(30$ Marks$)$

Mudzari Manufacturers provided the following trial balance on $28$ February $2022,$ the last day of the financial year:

Pre$-$adjustment trial balance for the year ending $28$ February $2022$

$\backslash$table$[[,$Debit,Credit$],[,R,R$

Additional information:

A physical stocktake was performed on $28$ February $2022.$ The value of the stock on this date was R$26955.$

Depreciation must be provided for as follows:

Vehicles at a rate of $25\%$ using the straight$-$line method

Furniture at a rate of $15\%$ on the diminishing balance

After consideration of the trade receivables $($debtors$),$ it was decided to raise an allowance for credit losses, being $2\%$ of outstanding debtors. The entity has not previously had an allowance for credit losses.

The rent for March $2022,$ R$3650,$ was received and banked before $28$ February $2022.$

The interest on the fixed deposit for the current year still needs to be taken into account. The fixed deposit has already been made in the previous financial year. No additional amounts have been deposited in the account throughout the financial year.

The loan from SA Bank was received on $1$ December $2021.$ The interest on the loan must still be recorded.

The telephone account for February $2022$ was received after the trial balance had been prepared and has not been paid yet, R$1974.$

Required:

Use the information provided to prepare a statement of profit or loss and other comprehensive income for the period ended $28$ February $2022.$ Include the trading, and profit and loss accounts, clearly showing the gross and net profits, respectively.

Show all your calculations.