REQUIRED

Use the information provided below to answer the following questions:

$1\mathrm{.}1$ Prepare the Statement of Comprehensive Income for the year ended $31$ December $2023.$

$1\mathrm{.}2$ Comment on the profitability of the company.

INFORMATION

The following information was extracted from the accounting records of Danone Limited on $31$ December

$2023,$ the end of the financial year:

DANONE LIMITED

PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $31$ DECEMBER $2023$

Balance Sheet Accounts Section Debit $($R$)$ Credit $($R$)$

Ordinary share capital $3000000$

Retained earnings $590000$

Land and buildings $5450000$

Vehicles $($cost$)1400000$

Equipment $($cost$)900000$

Accumulated depreciation on vehicles $510000$

Accumulated depreciation on equipment $390000$

Debentures $(10\%$ p$.$a$.)2700000$

Stock$/$Inventory $(01$ January $2023)1050000$

Accounts receivable$/$Debtors control $350000$

Provision for bad debts $30000$

Bank $240000$

Accounts payable$/$Creditors control $830000$

South African Revenue Services $($Company tax$)180000$

Nominal accounts section

Sales $7600000$

Purchases $4230000$

Sales returns $30000$

Purchases returns $300000$

Carriage on purchases $70000$

Page $2$ of $10$

Maintenance $90000$

Municipal rates $40000$

Carriage on sales $110000$

Wages and salaries $800000$

Stationery $10000$

Bad debts $20000$

Sundry expenses $80000$

Insurance $30000$

Telephone $50000$

Water and electricity $60000$

Directors$$ fees $500000$

Auditor$$s fees $70000$

Ordinary share dividends $190000$

$1595000015950000$

Additional information

$1.$ A debtor who was declared insolvent paid Danone Limited R$1500$ which represented $60\%$ of the

amount owed. This has been recorded. The balance of the account must now be written off.

$2.$ The provision for bad debts must be decreased to R$18000.$

$3.$ Trading inventory according to stocktaking on $31$ December $2023$ amounted to R$1000000.$

$4.$ Stationery used during $2023$ amounted to R$9000.$

$5.$ The municipal rates were paid for the period $01$ January $2023$ to $31$ January $2024.$ The rates were

increased by R$1000$ per month with effect from $01$ January $2024.$

$6.$ Depreciation must be provided for as follows:

$6\mathrm{.}1$ On vehicles at $25\%$ per annum using the reducing balance method; and

On equipment at $10\%$ per annum on cost$.$

$6\mathrm{.}2$ The debentures were issued on $01$ July $2023.$ Provide for the outstanding interest.

$7.$ The insurance account includes a premium of R$9000$ that was paid for the period $01$ April $2023$ to

$31$ March $2024.$

$8.$ An invoice was received from Apex Carriers for transporting goods to customers, R$5000.$ No entry

has been made for this.

$9.$ The water and electricity account for December $2023$ was due to be paid on $02$ January $2024,$

R$6000.$

$10.$ The income tax $($company tax$)$ for $2023$ amounted to R$341530$