Question 3 [41] The following information relates to Tortilla Traders: Pre-adjustment Trial Balance on 30 April 2021 R R 340 380 19 200 88 000 480 000 121 000 36 000 18 800 180 000 22 008 113 000 3 500 50 000 88 750 8 000 Statement of financial position section Capital Drawings Land and buildings Vehicles Accumulated depreciation: Vehicles Equipment Accumulated depreciation: Furniture and fittings Long-term loan: Basque Bank Trading inventory (1 May 2020) Trade receivables Allowance for credit losses Fixed deposit Bank Trade payables Nominal accounts section Sales Purchases Sales returns Purchases returns Rent income Advertising Bank charges Credit losses Interest on loans Stationery Telephone Wages and salaries 445 000 175 500 20 000 10 000 26 250 18 530 532 150 7 200 1 642 2 418 30 000 1 152 930 1 152 930 Additional information: 1. A physical stocktake on 30 April 2021 revealed that the inventory on hand at this date amounted to R26 800. 2. Depreciation must be provided for as follows: Vehicles at a rate of 25% on cost. Take into account that the cost includes a new delivery vehicle that was purchased on 1 November 2020 at a price of R80 000. Furniture and fittings at a rate of 10% on the diminishing balance. 3. At year end, notification was received that a debtor who owed Tortilla Traders R1 500 was declared insolvent and his debt must be written off. 4. The allowance for credit losses must be adjusted to 5% of outstanding debtors. 5. The tenant moved into the building on 1 September 2020. No deposit was payable on occupation, but rent is to be paid in advance. The tenant paid her rent for April, May and June 2021 during April 2021. 6. Interest earned on the fixed deposit is 6% per annum. There was no movement during the year on the fixed deposit. 7. The long-term loan from Basque Bank was received on 1 October 2019. The annual nominal interest rate of 8% is not capitalised but paid by Tortilla Traders every 6 months. No capital repayments have been made during the financial year. 8. Advertising for May 2021, R1 600, was paid in April 2021. 9. The telephone account for April 2021 amounts to R450. This has not yet been paid. 10 The April 2021 salary of an employee is still due to be paid to her, R7 000. 11 A debtor, whose account of R1 300 had previously been written off as irrecoverable, settled his account in full. The transaction has not yet been recorded. Required: Prepare the statement of profit or loss and other comprehensive income of Tortilla Traders for the year ended 30 April 2021. SHOW ALL YOUR CALCULATIONS