QUESTION $3$

Rashgard Ltd sells portable waterproof speakers to hypermarkets. You have been

asked to assist in the preparation of the annual financial statements for the year ended

$31$ March $2024.$ The following statement of comprehensive income has been

prepared by the bookkeeper.

On investigation of the above statement of comprehensive income, you discover the

following;

The bookkeeper had not journalised the reversing entry for the accrual at $31$

March $2023$ of rent paid in advance of R $3156$ and sales received in advance

of R$9444.$ Both these amounts are related to April $2023.$ All other reversing

entries have been processed.

Interest represents payments of interest for the year on a loan of R$42480.$ The

interest rate is $15\%$ per annum, and there have been no repayments during the

year.

The inventory per the statement of financial position at $31$ March $2023$ was

R$8890$ which represented $70$ speakers valued at R$127.$

There were $80$ speakers on hand at $31$ March $2024.$ Of these, $8$ were

considered worthless. Rashgard Ltd accounts for inventory on the periodic

using the FIFO basis of allocating costs.

The purchases and purchase returns records for the year were as follows;

$\begin{array}{cc}\text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{s}& ?\\ \text{J}\text{u}\text{n}\text{e}& 396\text{u}\text{n}\text{i}\text{t}\text{s}atR120\text{e}\text{a}\text{c}\text{h}\\ \text{O}\text{c}\text{t}\text{o}\text{b}\text{e}\text{r}& 450\text{u}\text{n}\text{i}\text{t}\text{s}atR132\text{e}\text{a}\text{c}\text{h}\\ \text{F}\text{e}\text{b}\text{r}\text{u}\text{a}\text{r}\text{y}& 142\text{u}\text{n}\text{i}\text{t}\text{s}atR144\text{e}\text{a}\text{c}\text{h}\\ \text{M}\text{a}\text{r}\text{c}\text{h}& 56\text{u}\text{n}\text{i}\text{t}\text{s}atR156\text{e}\text{a}\text{c}\text{h}(after\text{t}\text{r}\text{a}\text{d}\text{e}\text{d}\text{i}\text{s}\text{c}\text{o}\text{u}\text{n}\text{t})\\ ?& ?\\ \text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{r}\text{e}\text{t}\text{u}\text{r}\text{n}\text{s}& ?\\ \text{J}\text{u}\text{l}\text{y}& 56\text{u}\text{n}\text{i}\text{t}\text{s}atR120\text{e}\text{a}\text{c}\text{h}\\ \text{M}\text{a}\text{r}\text{c}\text{h}& 12\text{u}\text{n}\text{i}\text{t}\text{s}atR156\text{e}\text{a}\text{c}\text{h}\end{array}$

A Chinese supplier entered the market in late March and was selling its speakers at R$212$ each. The normal selling price of Rashgard was R$283.$

During March $2024,$ a carton of $10$ speakers purchased in March was stolen. Rashgard is not insured for losses of this nature.

No taxation or dividends are payable for the year.

Required;

a$)$ Record the journal entries to finalise the books for the year ended $31$ March $2024$ for items $1,2,6$ and $7$ only. Narrations are not required. If no entry is required, state this fact and give a reason for your answer.

$(10$ marks$)$

b$)$ Prepare the statement of comprehensive income for the year ended $31$ March $2024,$ taking $(1-8)$ above into account.

$(15$ marks$)$