Question (30 marks) time guide: 60mins The following balances were taken from the books of K. MOTLANTE Traders on 28 February 2011. Office Equipment at cost Accumulated Depreciation: Office Equipment Delivery Vehicle at cost Accumulated Depreciation: Delivery Vehicle Trading inventory: 28 February 2010 Debtors Provision allowance for doubtful debts Cash at Bank Capital: K. MOTLANTE Drawings: K. MOTLANTE Creditors Purchases Purchases returns [Creditors Allowances] Salaries Rent paid 30 000 15 000 1 120 000 70 000 612 000 130 000 4 000 300 400 1 770 000 240 000 414 000 1574 000 49 000 114 000 34 800 12.000 Advertisements Insurance Municipal costs 9 600 12 800 Sundry operating costs Sales Sales Returns [Debtors Allowances] Additional information: 2 400 1 900 000 30 000 1. Delivery vehicles are to be depreciated at 15% p.a. on the reducing balance method. 2. Trading inventory on hand on 28 February 2011 amounted to R 820 000. 3. The balance for rent paid includes an amount of R10 000 for March 2011. 4. The provision allowance for doubtful debts must be 5% of the debtors on 28 February 2011. 5. Depreciation on office equipment must be provided at 5% of the cost price. Required Prepare Statement of Comprehensive Income for the year ended 28 February 2011 and Statement of Financial Position as at that date.