QUESTION FIVEMahlosana Limited has hired as their financial manager. Your duties includes preparation of financialstatements.The following information was provided to you for the financial year$-$ended $28$ February $2024.$Mahlosana LimitedPre$-$adjusted trial balance as at $28$ February $2024$DescriptionCapitalDrawingsLand and buildingsVehicles at CostEquipment at CostAccumulated depreciation$-$ vehiclesAccumulated depreciation$-$ equipmentFixed deposit $-$ Std Bank $($at $8\%$ p$.$a$)$Trading inventoryTrade receivablesProvision for bad debtsBank $($combine with cash float$)$Trade payablesLong term loan $$ Absa Bank $(15\%$ p$.$a$.)$SalesCost of salesSales returnsSalaries and waqesBad debtsConsumables storesRates and taxesRepairsTelephoneElectricity and waterBank chargesInsuranceInterest on mortgage loanRent incomeAdjustments and additional information:$2$ Trading inventory, R$12000092000$Consumable stores, R$1000$Debit $($Dr$)$R$90000066000048000014000012200010.$ Provide for depreciation as follows:Required$14200064664452000196004260001200020000560009600016000480006000620003.$ The provision for bad debts must be decreased by R$1000\mathrm{.}36000001.$ The telephone account for February $2024$ has not yet been paid, R$2800\mathrm{.}3600002600002.$ A debtor, P$.$ Sellers, was declared insolvent. His account of R$2000$ must be written off$\mathrm{.}800011.$ Taxation is at $27\%$ of the profit before tax$1464644.$ Stocktaking on $28$ February $2024$ revealed the following stocks on hand:$240000$ On equipment at $10\%$ p$.$a$.$ on cost method$1510000100001248005.$ Part of the building has been sublet since March $2023.$ Rent has been received up to $31$March $2024\mathrm{.}6.$ The insurance total includes an annual insurance premiumn of R$7200,$ half of which is inrespect of the next accounting period$\mathrm{.}8.$ Interest of R$600$ is still owed on the fixed deposit on $28$ February $2024.$END OF QUESTION PAPERCredit $($Cr$)$R$7.$ Provide for outstanding interest on the long$-$term loan for the last month of the financial year$\mathrm{.}9.$ A payment of R$4000$ for water and electricity was erroneously posted to the rates and taxesaccount.$[25]$On vehicles at $20\%$ p$.$a$.$ on diminishing balance methodPrepare the statement of profit or loss and other comprehensive income for the year ended$28$ February $2024.$