QUESTION TWO Enc Ngid: the sole proprietor of a general dealer, Welcome Traders provided you with the following relevant accounting records for the financial year ended 28 February 2023 Insurance interest on long term borrowing Interest on fuced deposit Rent income Effect: Ledger accounts Account debited Motor vehicles Debit-R 600 000 135 000 60 000 51 630 105 330 20 220 130 500 422 400 2400 3700 2.300 93 510 4 800 18 810 24 600 5 850 11 250 Account credited Creditor BB 1 692 300 Credit-R 33.000 2850 593 550 60 000 74 400 844 500 4 800 79 200 1692 300 Additional information and adjustments: 1. Physical stocklake was done on 28 February 2023 and inventories were valued at cost an follows: Inventories Merchandise (Trade goods) R103 500 Inventories: Consumable items R 300 2. Rates and taxes included a payment of R6 120 for the 6 month period 1 January 2023 to 30 June 2023 3 The rent income for February 2023 in still outstanding. The monthly rent did not change for the period 1 March 2022 to 31 January 2023. However, the rent for February 2023 must be increased by 10% and recorded an outstanding of 28 February 2023 4 A Debtor A Noddy who owed R1 200 was declared insolvent and his estate declared a payment of 60 cents in the Rand. The amount received was correctly recorded. However, the balance of the account must now be written off as a credit lon 5 The allowance for credit losses must be adjusted to 5% of outstanding Debtors 6. On 25 February 2023, an Electrical Fund Transfer (EFT) deposit of R2 250 wiss made by E Lucky, a debtor whose account was previously written off. No entries have been made 7. Provide for depreciation of Equipment at 10% per year using the diminishing balance method The purchase on 1 February 2023 of Equipment costing R45 000 has not yet been recorded 8. The telephone account of R900 for February 2023, has not been recorded nor paid, 9. The fixed deposit at Bold Bank was made on 1 July 2022 and matures on 31 August 2023 interest on the fixed deposit is received on a monthly basis 10. A portion of the interest on the Long term borrowing has been paid in advance. The loan was obtained on 28 February 2022. Equal annual repayments of R15 000 will commence on 1 March 2023 Required: Prepare the statement of profit or loss and other comprehensive income for the financial year ended 28 February 2023 to comply with International Financial Reporting Standards (IFRS) appropriate to this entity and its type of business. Show all workings