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QUESTION TWO [35] Bongani Magwaza has been in business in his hometown of Ixopo since 1 April 2014. He decided to use 31 March as

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QUESTION TWO [35] Bongani Magwaza has been in business in his hometown of Ixopo since 1 April 2014. He decided to use 31 March as the financial year end for his business Bonga's General Dealers. The following information was obtained from the accounting records of Bonga's on the last day of the current financial year, 31 March 2019: Bonga's General Dealers Pre-adjustment trial balance as at 31 March 2019 Debits R Credits R 336 000 33 600 170 800 220 000 8 000 188 000 85 200 Equipment at cost Accumulated depreciation: equipment Bank Fixed deposit (maturity date: 30 June 2022) Cash float Inventory trade goods Debtors' control Allowance for credit losses Creditors control Long term borrowings: W Bank Capital: Bonga Drawings Sales Cost of sales Interest on fixed deposit Rental income Administrative expenses Water and electricity Insurance Stationery Returns from debtors Salaries and wagos 4 800 48 400 100 000 589 200 92 000 997 200 456 000 12 200 14400 28 000 34 600 16 800 9 200 16 000 139 200 1 799 800 1 799 800 Additional information: 1. On 31 March 2019 a physical stock take revealed that the value of trading stock on hand was R190 000, and stationery on hand was R3 200. 2. Employees' salaries of R8 000 wero not yet paid on 31 March 2019 3. The entity's fire insurance policy was entered into on 1 January 2019. The annual premium ot R5 760 was paid for coverage unti 31 December 2019, 2 4. A tenant moved into office space available for rent on 30 November 2018. The tenant prepaid the rent for 12 months. No deposit was required. 5. The equipment must be depreciated at the reducing balance method at 25% per year. No equipment was purchased nor sold during the financial year. 6. The fixed deposit was invested on 1 July 2017. Interest on the investment is provided for at 12% per year. 7. Included in the water and electricity expense above is an account of R3 200 that was paid for Bonga's private residence. 8. The 11% long term borrowing was taken on 30 September 2018 for a period of 4 years. Provide for the outstanding interest. Repayment will begin on 1 July 2021. 9. Write-off a credit loss of R1 800 and increase the allowance for credit losses by R1 200. Required: Prepare the following for Heat's Air Conditioners for the year ended 31 March 2019: (Show all workings and ignore comparative figures). 2.1 Statement of profit and loss and other comprehensive income, 2.2 Statement of changes in equity, and 2.3 Statement of financial position

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