QUESTION TWO

The trial balance of Nixit Ltd was prepared by the junior bookkeeper for the financial year ended $31$

August $2023.$

Additional information:

$($a$)$ Depreciation has not been recorded on property, plant and equipment. Motor vehicles are

depreciated on the reducing balance method at $20\%.$ Computer equipment of R$85000$ was

purchased on $1$ February $2023,$ replacing older items initially purchased for R$48000$ on $1$

November $2019.$ Office equipment of R$27000$ was purchased on $31$ December $2022.$

Computer equipment and office equipment depreciates on the straight$-$line basis at $25\%$ an

$10\%$ respectively.

$($b$)$ Mr$.$ Roy returned faulty goods of R$8100.$ Nixit Traders applies a $50\%$ markup on finished

products.

$($c$)$ The company allows a $2,5\%$ discount for accounts settled within $30$ days. Mrs$.$ Redkin

purchased goods of R$58000$ on a $30-$day account on $1$ August $2023.$ The account was paid

on $27$ August $2023,$ but the bookkeeper neglected to record the discount in all affected

accounts.

$($d$)$ The water and electricity account of R$1500$ was received on $21$ September $2023.$

$($e$)$ Artwork of R$2500$ was donated to Nixit Limited but not recorded.

$($f$)$ Professional work completed but not yet invoiced at year$-$end amounts to R$5000.$

$($g$)$ A delivery truck was purchased on $1$ December $2022$ for R$120000$ with an estimated

residual value of R$35000.$ No vehicles were sold during the year.

$($h$)$ Rental for September $2023$ was paid on $12$ August $2023.$

$($i$)$ The company is taxed at $28\%.$

Required:

Prepare the Statement of Comprehensive Income of Nixit Limited for the year ended $31$ August

Detail all calculations.