The following draft statement of profit or loss for the year ended 28 February 2021 was prepared by the accountant of Mix & More Limited.

Note 2021 2020 R000 R000 Sales 1 9 600 8 000

Profit from operations 2 4 600 3 800 Investment income 3 400 1 200 Interest paid (120) (1 500) Profit before tax 4 880 3 500 Taxation expense 4 ? ? Profit after tax ? ?

Additional information: 1. Sales Sales comprised the following: Sale of goods 7 500 6 000 Services rendered 2 000 1 750 Royalties taxable in the current reporting period 100 250 9 600 8 000

2. Profit from operations Profit from operations includes the following: Cost of sales (excluding depreciation on plant and machinery) 2 000 1 700 Depreciation plant and machinery 400 400 Additional depreciation in respect of plant and machinery as result of a change in accounting estimate 100 - Distribution costs (including traffic fines: see note 4 below) 1 850 1 470

Administrative costs 900 450 Profit from sale of land (see note 5 below) 400 - Other expenses 150 180

3. Investment income This comprises dividends received from listed investments. A dividend receivable from a listed company of R100 000 that was declared during February 2021 has yet to be recorded.

4. Taxation expense The corporate normal income tax rate is 30% throughout. A corporate capital gains tax rate of 18% (i.e. 60% of the normal income tax rate) is applicable to all realised capital gains throughout. Ignore all other forms of taxation. Provisional tax payments of R1 280 000 were made during the year ended 28 February 2021 (2020: R700 000). The tax expense for the 2021 and 2020 years has yet to be calculated.

The medical benefits are only deductible for tax purposes when payments are made. No payments were made in either 2020 or 2021. Traffic fines of R50 000 were incurred during the year ended 28 February 2021 (2020 Nil). Traffic fines are not deductible in the determination of taxable income.

7. Employee benefits expense Employee benefits expense amounted to R1 790 000 (2020: R 1 560 000) for the year.

REQUIRED

A. Prepare the statement of profit or loss (including notes thereto) of Mix & More Limited for the year ended 28 February 2021, in conformity with International Financial Reporting Standards, in so far as the above information permits. Mix & More Limited presents a separate statement of profit or loss and a classification of expenses by function on the face of the statement of profit or loss. (Comparative figures ARE required). Work to the nearest R000. Ignore accounting policies note.

B. Prepare the deferred taxation note to Mix & More Limiteds statement of financial position at 28 February 2021 (Comparative figures ARE required.) Work to the nearest R000. Ignore the accounting policies note.