Question 3 [27] The following information was taken from the books of Chime Traders on 31 March 2022, the last day of the financial year of the entity: Trial balance of Chime Traders on 31 March 2022 Fol. Debit (R) Credit (R)

Statement of financial position
Capital
Drawings
Land and buildings
Equipment
Accumulated depreciation: Equipment
Trading inventory
Bank
Petty cash
Vehicles

Additional information: 1. According to the physical stocktake, trading inventory of R72 400 was on hand on 31 March 2021. 2. A debtor, Miss B Breguet, has been declared insolvent. Received payment of R6 000, constituting 30 cents in the rand, from her insolvent estate. Write the balance of the debt off as irrecoverable. 3. Adjust the allowance for credit losses to the amount of R5 200. 4. Provide for depreciation as follows: On vehicles at 25% per annum on cost. On equipment at 20% per annum, using the diminishing balance method. 5. The tenant moved into the building on 1 October 2021. The rent for April 2022 has been prepaid. 6. R1 600 has been recovered from a debtor whose account had previously been written off as irrecoverable. The debtor paid this amount directly into Chime Traders bank account. This has not been recorded yet. 7. The amount for insurance includes an amount of R1 800 for an additional premium that was paid for the period 1 August 2021 to 31 July 2022. 8. The telephone account was received late, R2 758, and still needs to be recorded. Required: Prepare a statement of profit or loss and other comprehensive income for the year ended 31 March 2022. Include the trading, and profit and loss accounts, clearly showing the gross profit and net profit, respectively. Ignore VAT. Show all your calculations.

Questions (27) The following information was taken from the books of Chime Traders on 31 March 2022, the last day of the financial year of the entity: Credit (R) 198 038 3550 2 500 Trial balance of Chime Traders on 31 March 2022 Fol. Debit) Statement of financial position Capital B1 Drawings B2 52 500 Land and buildings 83 675 000 Equipment B4 75 000 Accumulated depreciation: Equipment 65 Trading inventory B6 87 500 Bank 87 17 500 Petty cash BB 1 500 Vehicles 89 62 500 Accumulated depreciation: Vehicles 810 Trade receivables B11 49 663 Allowance for credit losses B12 Trade payables B13 Long-term loan 814 Nominal accounts section Sales NI Sales returns N2 20 000 Purchases N3 650 000 Rent income N4 Interest received NS Rates and taxes NG 18 375 Interest on loan NZ 90 162 Wages and salaries NB 157 100 Telephone N9 22 188 Stationery N10 3750 Insurance N11 11 500 General expenses N12 11 100 2005 338 5 000 78 875 593 000 1 060 000 56 875 7 500 2005 338 Additional Information: 1. According to the physical stocktake, trading inventory of R72 400 was on hand on 31 March 2021. 2. A debtor, Miss B Breguet, has been declared Insolvent. Received payment of R6 000, constituting 30 cents in the rand, from her insolvent estate. Write the balance of the debt off as irrecoverable. 3. Adjust the alowance for credit losses to the amount of Rs 200. 4. Provide for depreciation as follows: . On vehicles at 25% per annum on cost. On equipment at 20% per annum, using the diminishing balance method. 5. The tenant moved into the building on 1 October 2021. The rent for Apni 2022 has been prepaid. 6. RI 600 has been recovered from a debtor whose account had previously been written off as irrecoverable. The debtor paid this amount directly into Chime Traders' bank account. This has not been recorded yet. 7. The amount for insurance includes an amount of R1 800 for an additional premium that was paid for the period 1 August 2021 to 31 July 2022. 8. The telephone account was received late, R2 758, and still needs to be recorded. Required: Prepare a statement of profit or loss and other comprehensive income for the year ended 31 March 2022. Include the trading, and profit and loss accounts. clearly showing the gross profit and net profit, respectively. Ignore VAT. Show al your calculations