The following pre-adjustment trial balance are presented to you. QWERTY TRADERS PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2020 R R 5 000 000 Sales Cost of sales Freight on sales Rent expense Stationery Insurance Discount granted Credit losses Water and electricity Discount received 3 268 400 11 000 301 200 61 600 81 600 7 000 800 201 600 8 000 1 320 200 320 000 1 800 000 720 000 800 000 Capital Drawings Vehicles at cost Accumulated depreciation: vehicles (1/3/2019) Equipment at cost Accumulated depreciation: equipment (1/3/2019) Loan: MNB Bank Fixed deposit: ASD Bank Debtors Inventory (28/2/2020) Bank Creditors Allowances for credit losses 160 000 400 000 300 000 100 400 341 600 80 600 61 600 6 000 7 675 800 7 675 800 1. 2. 6. Additional information: The financial yearend is 28 February 2020. Rent was paid for the period 1 March 2019 to 1 March 2020. 3. The fixed deposit was made on 1 September 2019 and carries interest at 10% per annum. No interest has been received for the year under review. 4. Debtors to the amount of R400 must be written off as irrecoverable. 5. The allowance for credit losses must be adjusted to 5% of outstanding debtors. Included in insurance is an amount of R21 600 with regards to additional insurance for the period 1 January 2020 to 31 December 2020. The loan at MNB Bank was taken out on 31 December 2019 with interest payable every six months at 15% per annum. 8. Depreciation must be provided as follows: a. Vehicles at 20% per annum on the reduced balance method. b. Equipment at 10% per annum on the straight-line method. 9. The following stock was on hand on 28 February 2020: a. Stationery: R400. 7. MARKS REQUIRED: 1. Prepare the Statement of profit or loss and other comprehensive income for the year ended 28 February 2020. 20 2. Name the information presented in the statement of profit or loss. 5 TOTAL MARKS 25 The following pre-adjustment trial balance are presented to you. QWERTY TRADERS PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2020 R R 5 000 000 Sales Cost of sales Freight on sales Rent expense Stationery Insurance Discount granted Credit losses Water and electricity Discount received 3 268 400 11 000 301 200 61 600 81 600 7 000 800 201 600 8 000 1 320 200 320 000 1 800 000 720 000 800 000 Capital Drawings Vehicles at cost Accumulated depreciation: vehicles (1/3/2019) Equipment at cost Accumulated depreciation: equipment (1/3/2019) Loan: MNB Bank Fixed deposit: ASD Bank Debtors Inventory (28/2/2020) Bank Creditors Allowances for credit losses 160 000 400 000 300 000 100 400 341 600 80 600 61 600 6 000 7 675 800 7 675 800 1. 2. 6. Additional information: The financial yearend is 28 February 2020. Rent was paid for the period 1 March 2019 to 1 March 2020. 3. The fixed deposit was made on 1 September 2019 and carries interest at 10% per annum. No interest has been received for the year under review. 4. Debtors to the amount of R400 must be written off as irrecoverable. 5. The allowance for credit losses must be adjusted to 5% of outstanding debtors. Included in insurance is an amount of R21 600 with regards to additional insurance for the period 1 January 2020 to 31 December 2020. The loan at MNB Bank was taken out on 31 December 2019 with interest payable every six months at 15% per annum. 8. Depreciation must be provided as follows: a. Vehicles at 20% per annum on the reduced balance method. b. Equipment at 10% per annum on the straight-line method. 9. The following stock was on hand on 28 February 2020: a. Stationery: R400. 7. MARKS REQUIRED: 1. Prepare the Statement of profit or loss and other comprehensive income for the year ended 28 February 2020. 20 2. Name the information presented in the statement of profit or loss. 5 TOTAL MARKS 25