QUESTION 2 (20 Marks REQUIRED Prepare the Statement of Comprehensive Income of Leo Traders for the year ended 29 February 2020 369 000 INFORMATION The trial balance, adjustments and additional information given below were extracted from the accounting records of Leo Traders on 29 February 2020, the end of the financial year. LEO TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020 Debit (R) Credit (R) Balance sheet accounts section Capital 660 000 Drawings 58000 Land and buildings 503000 Vehicles at cos! Equipment at cost 264 000 Accumulated depreciation on vehicles 211000 Accumulated depreciation on equipment 151 000 Fixed deposit: Tab Bank (10% pa) 79 000 Trading inventory 60 000 Debtors control 70 000 Provision for bad debts 4 000 Bank 51 000 Cash float 1000 Creditors control 74000 Mortgage loan: Tab Bank (16%pa.) 122000 830 000 Nominal accounts section Sales Cost of sales Sales returns Salanes and wages Bad debts Stationery Rates and taxes Motor expenses Marketing expenses Telephone Electricity and water Bank charges Insurance Interest on mortgage loan Interest on fand deposit Rent income 317 000 5000 235 000 7 000 2000 20 000 12 000 9 000 17 000 26 000 4000 6 000 20 000 6000 65 000 2 133 000 2 133 000 Adjustments and additional information 1. Stationery, cost R300, was taken by the proprietor for her personal use. No entry has been made for Physical stocktaking on 29 February 2020 reflected the following inventories: 21 Trading inventory R57000 22 Stationery R200 3. H. Larkens, a debtor, was declared insolvent. Received an amount of R1 500, which represented 60% of his debt, tom his insolvent estate. This has been recorded. The balance of his account must now be written of 4. The provision for bad debts must be decreased by R500. 5. Rent income amounts to R5 000 per month. Make the necessary adjustment The water and electricity account for February 2020 has been paid, R2 500, but the payment was erroneously posted to the telephone account 7. The insurance total indudes a premium of R2 400 that was paid for the period 01 December 2019 to 30 November 2020 & An amount of R200 appeared in the February 2020 bank statement for cash deposit fees. This amount was not recorded by the bookkeeper. The investment in freed deposit was made on 01 March 2019. Provide for the outstanding interest 10. Provide for outstanding interest on loan, R1 120 11. Provide for depreciation as follows: 11.1 On vehicles at 20% per year using the diminishing balance method. 11.2 On equipment at 10% per year on cost