QUESTION 2. The trial balance, adjustments and additional information given below were ectracted from the accounting records of Leo Traders on 29 February 2016, the end of the financial year.

REQUIRED

Use the trial balance adjustments and additional information to prepare the Statement of Comprehensive Income of Leo Traders fir the year ended 29 February 2016

The trial balance, adjustments and additional information given below we com ** accounting records of Leo Traders on 22 February 2018, the end of the financial year MARKS REQUIRED Use the trial balance, ajustments and actional information to prepare the Statement of Comprehensive Income of Leo Traders for the yeu ended 29 February 2016. Use the folosing format Statement of Comprehensive Income format Sales Cost of sales Gross profit Other operating income Leo Landers Gross operating income Operating expenses Operating profit Interest income Interest expense Net profit for the year Leo Traders PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2016 Debit (R) Credit (R) Balance sheet accounts section 660 120 54 540 502 500 369 0002 264 0004 Capital Drawings Land and buildings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Fixed deposit: Win Bank (10% p.a.) Trading inventory Debtors control Provision for bad debts Bank Cash float Creditors control 211 000 147 800 79 2004 60 000 70 000 4 000 50 360 1 000 73 580 132 000 Mortgage loan: Win Bank (16% p.a.) Nominal accounts section Sales Cost of sales Sales returns Salaries and wages Bad debts Stationery Rates and taxes Motor expenses Marketing expenses Telephone 830 600V 317 6004 5 000N 235 0004 75004 2000 23 000 12 800 9 400 17 800 26 700 33004 2 6004 20 500M 5 900 68 600 2 133 800 2 133 800 Electricity and water Bank charges Insurance Interest on mortgage loan Interest on fixed deposit Rent income ADJUSTMENTS AND ADDITIONAL INFORMATION 1. Stationery, cost R200, was taken by the proprietor for personal use. No entry has been made for this. 2. Physical stocktaking on 29 February 2016 showed the following inventories on hand: Trading inventory R58 000 Stationery R100 3. Write off the account of debtor, R. Smit, R1 000. 4. The provision for bad debts must be decreased by R500. 5. Rent income amounts to R4 900 per month. Make the necessary adjustment. 6. The water and electricity account of R2300.00 for February 2013 has been paid, but the payment was erroneously posted to the telephone account. 7. Rates and taxes include an amount of R2 400 that was paid for the next accounting period. 8. An amount of R100 appeared in the February 2013 bank statement for cash deposit fees. This amount was not recorded by the bookkeeper. 9. The investment in fixed deposit was made on 01 March 2015. Provide for the outstanding interest. 10. The loan from Win Bank was obtained on 01 March 2015. Provide for outstanding interest of R620. 11. Provide for depreciation as follows: On equipment at 10% per year on cost. On vehicles at 20% per year using the diminishing balance method