Question 4 [25] The following information relates to Australis Traders: Pre-adjustment trial balance for the year ending 31 May 2021 R R 889 725 23 400 670 000 94 000 20 560 20 400 Balance sheet section Capital Drawings Land and buildings Vehicles Accumulated depreciation: Vehicles Furniture and fittings Accumulated depreciation: Furniture and fittings Fixed deposit Trading inventory (1 June 2020) Debtors control Bank Creditors control Nominal accounts section Sales 6 410 100 000 50 260 104 700 42 340 66 780 1 721 680 Page 4 of Assignment TUTORIAL LETTER I (ASSIGNMENT 1) - 2021 FIRST SEMESTER ACCIO ACCOUNTING 1 272 600 15 680 23 420 44 850 18 725 Purchases Sales returns Purchases returns Rent income Commission income Advertising Insurance Interest expense Stationery Telephone Wages and salaries 18 530 30 940 2 240 6 642 30 418 310 000 2 792 150 2 792 150 Additional information 1. A physical stocktake was performed on 31 May 2021. The value of the stock on this date was R49 936. 2. Depreciation must be provided for as follows: Vehicles at a rate of 20% on the diminishing balance Furniture and fittings at a rate of 10% on cost 3. After consideration of the trade receivables (debtors), it is decided to raise an allowance for credit losses, being 1% of outstanding debts. 4. The rent for June 2021, R3 450, was received and banked before 31 May 2021. 5. Interest earned on the fixed deposit is 8% per annum. 6. The insurance premium for June 2021, R2 380, was paid in May 2021. 7. The telephone account for May 2021 was received late and has not been paid yet, R2 815. Required: Prepare the statement of profit or loss and other comprehensive income of Australis Traders for the year ended 31 May 2021