QUESTION FIVE

Mahlosana Limited has hired as their financial manager. Your duties includes preparation of financial

staternents.

The following information was provided to you for the financial year$-$ended $28$ February $2024.$ Mahlosana Limited

Pre$-$adjusted trial balance as at $28$ February $2024\backslash$table$[[$Sales$,,1510000],[$Cost of sales,$452000,],[$Sales retums,$19600,],[$Salaries and wages,$426000,],[$Bad debts,$12000,],[$Consumables stores,$20000,],[$Rates and taxes,$56000,],[$Repairs$,96000,],[$Telephone$,16000,],[$Electricity and water,$48000,10000],[$Bank charges,$6000,124800],[$Insurance$,,],[$Interest on mortgage loan,,$],[$Rent income,,$]]$ Adjustments and additional information:

The telephone account for February $2024$ has not yet been paid, R$2800.$

A debtor, P$.$ Sellers, was declared insolvent. His account of R$2000$ must be written off.

The provision for bad debts must be decreased by R$1000.$

Stocktaking on $28$ February $2024$ revealed the following stocks on hand:

Trading inventory. R$120000$

Consumable stores, R$1000$

Part of the building has been sublet since March $2023.$ Rent has been received up to $31$

March $2024.$Part of the building has been sublet since March $2023.$ Rent has been received up to $31$

March $2024.$

The insurance total includes an annual insurance premium of R$7200,$ half of which is in

respect of the next accounting period.

Provide for outstanding interest on the long$-$term loan for the last month of the financial year

Interest of R$600$ is still owed on the fixed deposit on $28$ February $2024.$

A payment of R$4000$ for water and electricity was erroneously posted to the rates and taxes

account.

Provide for depreciation as follows:

On equipment at $10\%$ p$.$a$.$ on cost method

On vehicles at $20\%$ p$.$a$.$ on diminishing balance method

Taxation is at $27\%$ of the profit before tax

Required

Prepare the statement of profit or loss and other comprehensive income for the year ended

$28$ February $2024.$