Question 5 (31) STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME The following information relates to Iball Industries: Pre-adjustment trial balance for the year ending 31 May 2020 R R 615 231 5 500 353 000 145 560 30 560 65 310 9 310 110 000 45 000 34 750 45 000 44 500 Statement of financial position section Capital Drawings Land and buildings Vehicles Accumulated depreciation: Vehicles Furniture and fittings Accumulated depreciation: Furniture and fittings Fixed deposit Trading inventory (1 June 2019) Debtors control Bank Creditors control Statement of profit or loss and other comprehensive income section Sales Purchases Sales returns Purchases returns Rent income Commission income Advertising Insurance Interest expense Stationery Telephone Water and electricity 460 000 310 000 13 500 35 000 39 900 14 000 18.530 26 400 3 340 11 643 23 418 37550 1 248 501 1 248 501 Additional information: 1. The entity uses the periodic system to record inventory. A physical stocktake was performed on 31 May 2020. The value of the stock on this date was R60 000. 2. The water and electricity account for the month of May 2020 amounts to R2 450. This has not yet been paid or taken into account. 3. During the first 7 months of the financial year the rent received from the tenant was R3 000 per month. On 1 January 2020, the rent was increased to R3 150 per month. The rent for June 2020 has already been received and banked. 4. Depreciation must be provided for as follows: Vehicles at a rate of 20% on cost Fumiture and fittings at a rate of 10%, using the diminishing balance method At year end, notification was received that a debtor owing R550 was declared insolvent and the debt should be written off. After consideration of the trade receivables, it was decided to raise an allowance for credit losses at 10% of outstanding debtors. 7. Interest earned on the fixed deposit is 6% per annum. 8. The insurance premium for June 2020, R200, was already paid in May 2020. Required: Prepare the statement of profit or loss and other comprehensive income of Iball Industries for the year ended 31 May 2020. 5. 6