QUESTION TWO [25] Michael Mbatha operates a general dealership in the district of Umzinto Michael has been in business for a few years now and has always made certain that he has all the necessary documents to keep a record of his financial activities The following have been extracted from the pre-adjustment trial balance for the year ended 31 March 2020: Debit -R Credit-R Capital 473 450 Drawings 116 000 Long term borrowing from Traders Bank 135 000 Trade payables 131 200 Fixtures and fittings at cost 840 000 Accumulated depreciation: Fixtures and Fittings 281 300 Inventory at 1 April 2019 135 000 Trade receivables 165 000 Allowance for credit losses/Provision for bad debts 9 000 Bank balance 51 000 Sales 2 037 700 Purchases returns 42 200 Purchases 951 300 Railage inwards 13 700 Sales returns 28 500 Commission income 33 600 Bank charges 35 800 Credit losses/Bad debts 27 000 Sundry expenses 75 900 Electricity and water 123 200 Rent expense 156 000 Settlement discounts granted 9 000 Salaries 412 100 Interest on borrowings 3 950 3 143 450 3 143 450 Additional information: 1. Trading inventory at 31 March 2020 was valued at R127 000 2 Commission income of R4 050 was earned in March 2020 but has neither been received and nor has it been recorded. 3. A debtor's account of R1 500 must be written-off as ir-recoverable. The allowance for credit losses must be increase to R11 300 4. The rent expense for April 2020 is included above. Rent has remained unchanged. The March 2020 electricity and water account of R10 550 was received on 15 April 2020 and is not included in the above accounting records. 6. Fixtures and fittings must be depreciated using the reducing balance method at 15% per year. There were no purchases or sales of fixtures and fittings for the current period. 7. The long term borrowings were made on 1 June 2018 at 10% per year over a fixed period of 5 (five) years. A payment of R65 000 was made towards the capital on 31 March 2020. This has been recorded correctly and included in the above accounts. 5 Required: Prepare the statement of profit of loss and other comprehensive income of Mbatha's general dealers for the year ended 31 March 2020 to comply with requirements of International Financial Reporting Standards (IFRS) appropriate to Michael Mbatha's business. Comparative figures are not required. Show all workings