QUESTION 3 30 MINUTES] [20 MARKS Mr Bruckna is the owner of Tatu Tyres Limited (hereafter Tatu Tyres). The business sells and fixes tyres for passenger and large industrial vehicles. The financial reporting period end of the entity is 31 March. The entity is NOT registered for VAT. You have been requested to aid the bookkeeper of Tatu Tyres in compiling the annual financial statements for the financial reporting period ended 31 March 2022. The following information is provided to you: EXTRACT FROM THE TRIAL BALANCE AS AT 31 MARCH 2022 Notes DEBIT CREDIT Drawings Accrued expense-Telephone (31 March 2021) Trade receivables Vehicles at cost Depreciation expense Inventory Stationery on hand (31 March 2021) Accumulated depreciation vehicles Trade payables Allowance for expected credit losses (31 March R922 625 11 750 &1 734 070 3255 000 54250 2 357 500 16 850 1 139 250 993 350 2021) Bank 83 625 11 550 Retained earnings (31 March 2021) 4051 800 Profit for the year (31 March 2022) vi 2 753 100 Capital account (31 March 2022) 2 604 700 Additional information: The following transactions (iii) have not yet been recorded in the accounting records: The telephone account for March 2022 was received on 3 April 2022. The total amount payable of R 16 050 was settled in full on 6 April 2022. (ii) Mr Vroom took out an annual insurance contract on 1 October 2021. The total yearly premium to insure the business premises and inventory for one year amounted to R 60 000 and was paid in full on 1 October 2021. The necessary adjustments have not yet been made. (Tatu Tyres received notice that one of their customers was declared insolvent. The customer's attorney informed the company that the customer would only be able to pay 50 cents in the rand on their outstanding account. The due balance amounted to R 57 270. Tatu Tyres received the final settlement on 31 March 2022.