QUESTION 5 (25 Marks) The following Trial Balance at 30 June 2020 was extracted from the ledger accounts of "PP DISTRIBUTORS CC". N$ N$ ACCOUNT DESCRIPTION DR CR Members salaries 30 000 Members contribution 450 000 Sales 1 675 000 Cost of Sales 897 000 Retained Earning: 01 July 2019 54 200 Interim profit Distribution: Piet 45 000 : Plessis 45 000 Loan to members: Plessis 80 000 Allowance for credit losses 4 600 Investment: West Rand Mines (Pty) Ltd 205 000 Inventories: Trade Inventories 107 500 13 000 : Consumable Inventories : Packaging Material 17 000 520 000 Land and Buildings Motor Vehicles 180 000 77 000 Furniture Equipment 120 000 Prepaid tax: NaMRA 40 000 Accounts receivable 95 000 Accrued expense 11 600 21 000 Accumulated depreciation: Furniture Accumulated depreciation: Equipment 19 000 Investment Income 10 300 Long term loan: Bouland Bank 310 000 Accounts Payable 106 500 Bank 25 600 600 Petty cash. Bad debts Salaries and wages 1 400 101 000 Distribution costs 77 000 62 000 Other operating expenses Loan from member: Piet Finance costs 96 900 20 000 2 759 100 2 759 100 Additional Information:- 1. The corporation has two members, Piet and Plessis who holds equal interest. 2. At the members meeting conducted in March 2020 it was resolved that:- Members will be paid a further profit distribution of N$25 000 each at year end. Due to an increase in operations a new Motor vehicle had to be acquired. On the 01 April 2020 a vehicle with a cost price of N$180 000 was acquired. No vehicles existed prior to this acquisition. The correct entries were processed to record the purchase of the vehicle. No assets were sold off during the year. 8 The loan from Piet, accrues interest at a rate of 8% per annum. No fixed repayment terms were agreed upon and the loan is unsecured. Interest has not be taken into account yet. No interest will be levied on Loans to member: Plessis, as it has always been done in the past. No interest accrual will be made for the year ended 30 June 2020. Land and Buildings was revaluated for the first time this year. Jacobus Oosthuizen, a sworn valuator was appointed to value the property and he attached a value of N$740 000 at 30 June 2020. 2. Depreciation for the current year has not been accounted for. It has been the policy of the entity to depreciate assets as follows:- a. Furniture : 20% p.a on reducing balance basis b. Equipment: 10% p.a on straight line basis c. Motor Vehicles: 20% p.a on straight line basis 3. Total taxation expense for the year was calculated to be N$67 500, but no entry has been made to record this yet. 4. A debtor with a balance of N$550 must still be written off as irrecoverable. Allowance for credit losses must be adjusted to 6% of the outstanding debtors at year end. YOU ARE REQUIRED: 1. Prepare the Statement of comprehensive income of PP Distributors for the year ended 30 June 2020. No notes are required. (13 marks) 2. Prepare the ASSETS section of the Statement of financial position at 30 June 2020. No notes are required. (12 marks) PLEASE NOTE: Grouping together of amounts count marks, therefore please show all calculations. No comparative figures are required