Star Ltd is a company that trades in shoes and bags. The following information has been provided $($the financial year runs from January to December$)$:

List of pre$-$adjustment balances as at $31$ December $2023$

Vehicles and Equipment at cost $=98000$

Total accumulated depreciation at $1$ January $2023=25820$

Fixed deposit: Nedbank$=100000$

Inventory: Trade goods$=117000$

Trade debtors$=10400$

Allowance for credit losses$=600$

Bank$=106200$

Cash float$=1200$

Share capital $($Issued$)=283400$

Retained earnings $(1$ January $2023)=73360$

Directors loan $($Dr Balance $-$ long term in nature$)=26840$

Long term borrowing: XYZ Finance$=50000$

Trade creditors$=19100$

Sales $=763580$

Sales returns$=2400$

Rental income$=31200$

Settlement discounts received$=1300$

Interest on investment$=10000$

Credit losses recovered$=240$

Cost of sales$=330800$

Credit losses $=1100$

Packing materials purchased$=9400$

Insurance$=4500$

Telephone$=2800$

Advertisements$=4000$

Settlement discounts granted$=760$

Other expenses$=70200$

Additional information:

$1.$ The following information is available for Vehicles and Equipment:

Vehicle Cost at $31$ Dec. $2023=80000$

Vehicle Accumulated Depreciation at $1$ Jan. $2023=22400$

Equipment Cost at $31$ Dec. $2023=18000$

Equipment Accumulated Depreciation at $1$ Jan. $2023=3420$

Equipment at cost $-$ R$18000$: includes equipment bought for cash at a cost of $4000$ on $1$ July $2023.$ Provide depreciation for the year for all vehicles and equipment as follows:

Equipment : $10\%$ per year on the diminishing balance method.

Vehicle : $20\%$ per year on the diminishing balance method.

$2.$ Results of a physical stock taken on $31$ December $2023$ revealed that:

$2\mathrm{.}1$ Trading goods on hand was R$114500,$ and

$2\mathrm{.}2$ Packing material on hand was R$1960.$

$3.$ Advertisement cost of R$4000$ is exclusively for an advertising campaign covering the period $1$ May $2023$ to $28$ February $2024.$

$4.$ Rental income was received from the company$$s only tenant. The rent includes the January $2024$ rental. Rent remained constant over the full period.

$5.$ The long$-$term borrowing was taken on $30$ September $2023.$ Interest is payable every $6$ months at a rate of $18\%$ per year. Interest has not yet been accounted for $2023.$

$6.$ Interest on the fixed deposit from Nedbank has not yet been accounted for November $2023$ and December $2023.$ Interest is calculated at $12\%$ per year.

$7.$ The December $2023$ telephone account of R$330$ has not yet been recorded.

$8.$ A debtor$$s account of R$1000$ has long been outstanding. The debtor$$s insolvent estate paid $60\%$ of the debt. The balance needs to be written$-$off.

$9.$ It was agreed that the $$provision for bad debts$$ account needs to be adjusted to show a balance of only R$500.$

The question is: Required:

Prepare the following for Star Ltd for the financial year ending $31$ December $2023$:

a$)$ The statement of financial position as at $31$ December $2023.$

b$)$ Prepare the Vehicles and Equipment note. You can include them on one note.

c$)$State the objective of preparing Annual Financial Statements.

Show all workings including the workings for closing Retained earnings $/$ losses.

Your answer must comply with the requirements of the International Financial Reporting Standards $($IFRS$)$ appropriate to this business.