Question $1$

Tatiana Singh Limited, a well$-$established company, provides a range of products and

services in the consumer electronics industry. The manager, Andile Mkhize, requested

for a report of the financial performance of the company at year end. The following are

the balances taken from the records of Tatiana Singh Limited for the year ended $31$

December $2022.$

R

Cash and cash equivalents $120000$

Share capital $(240000)$

Revenue: sale of goods $(480000)$

Rent income $(50000)$

Dividend income $(100000)$

Royalty income $(70000)$

Cost of sales $105000$

Revaluation surplus on land $$ increase $30000$

Interest income $(20500)$

Interest on long$-$term borrowings $12000$

Interest charges on late payments $10000$

Other expenses $250000$

Taxation $36550$

Retained Earnings: $(1$ January $2022)(255000)$

Revaluation Surplus: $(1$ January $2022)(25000)$

Rent received in advance: $(1$ January $2022)(3000)$

Trade and other payables $(180000)$

Current tax payable $(46000)$

Trade and other receivables $150000$

Long$-$term loan $36500$

Vehicles: Gross carrying amount $100000$

Vehicles: accumulated depreciation $(50000)$

ADDITIONAL INFORMATION:

$$ Dividends of R$25500$ were declared on the $29$ December $2022.$ These had not

been paid as at $31$ December $2022.$

$$ Share capital constitutes $240000$ ordinary shares issued at R$1$ each. $40000$

shares were issued at R$1$ on the first day of the year.

$$ Rent income received in advance at $31$ December $2022$ is R$8500.$

$$ Telephone expenses prepaid at $31$ December $2022$ is R$5500.$ Telephone

expenses are included in $$other expenses$.$

$$ Accumulated depreciation on vehicles at $31$ December $2021$ was R$35000.$

There have been neither purchases nor sales of vehicles during the year.

$$ Other expenses include the auditor$$s remuneration of R$23000,$ director$$s fees

of R$45000,$ depreciation on machinery of R$36500,$ depreciation on buildings

of R$21000,$ loss on sale of assets of R$15500.$

Required:

a$.$ Prepare the Statement of Comprehensive Income for the year ended $31$

December $2022.(10)$

b$.$ Prepare the Statement of Changes in Equity for the year ended $31$ December

$2022(8)$

c$.$ Prepare the following notes to the financial statements: $(12)$

$$ Profit before taxation

$$ Finance costs

$$ Taxatio