QUESTION 2 [25] The account balances and the additional information shown below were extracted from the accounting records of Amigos Wholesalers for financial year ended 28 February 2023. Pre-adjustment trial balance as at 28 February 2023 Debit - R Credit - R Vehicles at cost 415 000 Accumulated depreciation: Vehicles 180 000 Equipment at cost 225 000 Accumulated depreciation: Equipment 126 000 Fixed deposit: Fin Bank - 12% per year 60 000 Inventory : trading goods 133 000 Debtors Control 75 000 Allowance for credit losses 3 400 Bank 34 200 Capital C Banjo 362 500 Drawings 103 000 Loan: Win Bank 16% per year 112 500 Creditors control 70 000 Sales 842 500 Sales returns 12 000 Interest on fixed deposit 5 000 Rent income 52 000 Purchases 423 000 Purchases returns 18 000 Carriage on purchases 4 500 Carriage on sales 7 000 Credit losses 6 800 Stationery 16 500 Rates and taxes 40 000 Advertising 32 500 Settlement Discounts granted 5 500 Settlement Discounts received 2 800 Sundry expenses 181 700 1 774 700 1 774 700 5 Additional Information that needs to be taken into account: 1. A physical stock-take was undertaken and the inventories were valued as follow as at financial year 28 February 2023; Trading inventory was valued at R147 500 Stationery on hand was valued at R1 600 2. Amigos entered into an advertisement contract for R4 400 for the period 1 January 2023 to 30 April 2023. Amigos intend to complete the contract up to 30 April 2023. 3. Amos retailer, a debtor, was declared insolvent and liquidators paid all creditors 25 cents in the Rand (ie. 25% of the amounts owing). A deposit of R1 350 was made into our bank account and is included in the records above. However, the balance of the account must now be written off as a credit loss. 4. Assets need to be depreciated as follows; Vehicles at 20% on the straight line method, and Equipment at 10% on the reducing balance method. No Vehicles or Equipment were purchased or sold during the current financial year. 5. The Allowance for credit losses must be decreased by R300. 6. Interest on the fixed deposit is still outstanding. Investment in the fixed deposit was made on 1 March 2022 and will mature on 31 May 2024. Record the outstanding interest. 7. Rent has been received from the tenant for the period 1 March 2022 to 31 March 2023. The tenants monthly rent did not change for the period 1 March 2022 to 31 March 2023. 8. The Loan from Win Bank was taken on 1 July 2019. During the current financial year only a single payment of R37 500 was made on 31 August 2022 and was correctly recorded. The interest on the loan needs to be updated. 9. Rates and taxes includes a payment of R30 000 that was paid for the period 1 July 2022 to 30 June 2023. Required: Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 2023 for Amigos Wholesalers. Use terminology and a format that complies with International Financial Reporting Standards (IFRS) for this type of entity. [25]