QUESTION 2 The following balances occurred on 28 February 20.8 in the general ledger of Oppiebult Supermarket. N$ Capital T. Eloff 70 000 Drawings 9 590 Purchase 113 740 Advertising 2 380 General expenses 5 020 Fuel maintenance 3 910 Rent received 5 664 Credit losses 540 Wages 18 364 Interest on bond 3 100 Stationery 380 Rail charges on purchases 1 380 Sales 159 270 Insurance 3 670 Inventory on 28 February 20.8 Trading stock 21 200 Stationery 330 Bond ABSA (interest rate = 15%) 20 000 Land 20 000 Buildings 25 000 Furniture at cost 8 300 Accumulated depreciation on furniture (1/3/20.7) 6 200 Vehicles at cost 29 600 Accumulated depreciation on buildings (1/3/20.7) 5 000 Accumulated depreciation of vehicles (1/3/20.7) 13 400 Creditor control 22 150 Debtors control 30 100 Bank (positive) 3 080 Allowance for credit losses 3 000 Additional information: 1. Credit losses amounting to R1 100 must be written off. 2. Allowance for credit losses should be adjusted to 10% of outstanding trade debtors. 3. Vehicles are depreciation at 20% per annum on the reducing balance method. A vehicle was sold on 1 September 20.7 for R 8 000. It was purchased on 31 May 20.5 for R122 500. The only entry for this transaction was that the bank was debited and sales were credited. 4. New furniture was bought on 1 December 20.7 for R1 200. The debit amount was incorrectly posted to the purchase account. 10 5. Depreciation must be provided for at 10% per year on the reducing balance of furniture and at 5% on cost of buildings. 6. The rent for February 20.8 is still outstanding. Rent is received at a fixed amount per month that was increased by 20% on 1 December 20.7. 7. The bond was obtained on 1 December 20.5 when land and building were purchased. It is repayable in a fixed capital payment of R10 000 on 30 November each year. The interest is payable monthly. The interest rate was increased on 1 February 20.8 from 12% to 15%. 8. Groceries at a cost of R1 730 that was purchased on credit was included in the inventory counted on 29 February 20.8, but no entry has been in the accounting records. 9. Included in insurance is an amount of R600 that was paid for the three months that ended on 31 March 20.8. 10. Inventory is valued on a first-in first-out basis. 11. No other assets were purchased or sold. REQUIRED: 1. Prepare the statement of profit or loss and other comprehensive income for the year ending on 31 February 20 to comply with the requirements of IFRS and Companies Act. 2. Prepare the following notes: (i) Accounting policy (ii) Property plant and equipment (iii) Inventory.