REQUIRED Prepare the Statement of Comprehensive Income of Leo Traders for the year ended 29 February 2020.

INFORMATION The trial balance, adjustments and additional information given below were extracted from the accounting records of Leo Traders on 29 February 2020, the end of the financial year.

LEO TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020 Debit (R) Credit (R) 660 000 56 000 503 000 369 000 264 000 211 000 151 000 Balance sheet accounts section Capital Drawings Land and buildings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Fixed deposit: Tab Bank (10% p.a.) Trading inventory Debtors control Provision for bad debts Bank Cash float Creditors control Mortgage loan: Tab Bank (16% p.a.) 79 000 60 000 70 000 4 000 51 000 1 000 74 000 132 000 830 000 Nominal accounts section Sales Cost of sales Sales returns Salaries and wages Bad debts Stationery Rates and taxes Motor expenses Marketing expenses Telephone Electricity and water Bank charges Insurance Interest on mortgage loan Interest on fixed deposit Rent income 317 000 5 000 235 000 7 000 2 000 20 000 12 000 9000 17 000 26 000 4 000 6 000 20 000 6 000 65 000 2 133 000 2 133 000 Adjustments and additional information 1. . Stationery, cost R300, was taken by the proprietor for her personal use. No entry has been made for this. 2. Physical stocktaking on 29 February 2020 reflected the following inventories: 2.1 Trading inventory R57 000 2.2 Stationery R200 3. H. Larkens, a debtor, was declared insolvent. Received an amount of R1 500, which represented 60% of his debt, from his insolvent estate. This has been recorded. The balance of his account must now be written off 4. The provision for bad debts must be decreased by R500. 5. Rent income amounts to R5 000 per month. Make the necessary adjustment 6. The water and electricity account for February 2020 has been paid, R2 500, but the payment was erroneously posted to the telephone account. 7. The insurance total includes a premium of R2 400 that was paid for the period 01 December 2019 to 30 November 2020 8. An amount of R200 appeared in the February 2020 bank statement for cash deposit fees. This amount was not recorded by the bookkeeper. 9. The investment in fixed deposit was made on 01 March 2019. Provide for the outstanding interest 10. Provide for outstanding interest on loan, R1 120. 11. Provide for depreciation as follows: 11.1 On vehicles at 20% per year using the diminishing balance method. 11.2 On equipment at 10% per year on cost