Question 4 [25] The following information relates to Australis Traders: Pre-adjustment trial balance for the year ending 31 May 2021 R R Balance sheet section Capital 889 725 Drawings 23 400 Land and buildings 670 000 Vehicles 94 000 Accumulated depreciation: Vehicles 20 560 Furniture and fittings 20 400 Accumulated depreciation: Furniture and fittings 6 410 Fixed deposit 100 000 Trading inventory (1 June 2020) 50 260 Debtors control 104 700 Bank 42 340 Creditors control 66 780 Nominal accounts section Sales 1 721 680Purchases 1 272 600 Sales returns 15 680 Purchases returns 23 420 Rent income 44 850 Commission income 18 725 Advertising 18 530 Insurance 30 940 Interest expense 2 240 Stationery 6 642 Telephone 30 418 Wages and salaries 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.