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The following trial balance, adjustments and additional information were extracted from the records of Aerostat Traders for the financial year ended 2 9 February 2

The following trial balance, adjustments and additional information were extracted from the records of Aerostat
Traders for the financial year ended 29 February 2024:
\table[[AEROSTAT TRADERS],[PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2024],[,Debit (R),Credit (R)],[Balance sheet accounts section],[Capital,,2449000],[Land and buildings,1064000,],[Vehicles at cost,2850000,],[Equipment at cost,1650000,],[Accumulated depreciation on vehicles,,1380000],[Accumulated depreciation on equipment,,540000],[Debtors control/Accounts receivable,480000,],[Provision for bad debts/Allowance for credit losses,,26000],[Bank,358000,],[Creditors control/Accounts payable,,615000],[Mortgage loan: Med Bank (16% p.a.),,1050000],[Nominal accounts section],[Sales,,7425000],[Sales returns,45000,],[Opening stock,750000,],[Purchases,3900000,],[Salaries and wages,1290000,],[Bad debts,15000,],[Stationery,23000,],[Rent expense,345000,],[Motor expenses,267000,],[Bad debts recovered,,13000],[Telephone,93000,],[Electricity and water,186000,],[Bank charges,37000,],[Insurance,81000,],[Interest on mortgage loan,154000,],[Commission income,,90000],[13588000,13588000]] ADDITIONAL INFORMATION AND ADJUSTMENTS
Stocktaking on 29 February 2024 revealed trading inventory of R1000000 on hand:
The rent expense amounted to R26000 per month for the period 01 March 2023 to 31 August 2023
and R27000 per month for the period 01 September 2023 to 31 March 2024. Make the necessary
adjustment.
A debtor who owed R20000 was declared insolvent. His account must now be written off.
The provision for bad debts must be decreased to R23000.(Show a separate account for the change
in the provision for bad debts in the statement of comprehensive income.)
Provide for outstanding interest on the loan for the last month of the financial year. Interest is not
capitalised.
The telephone account for February 2024 was due to be paid on 02 March 2024, R8000.
According to the bank statement, bank charges of R2000 were levied by the bank. This has not been
recorded.
Received R5000 from H. Keron whose account was written off as a bad debt previously. No entry
was made for this.
A debtor whose account was overdue for one month must be charged R100 interest.
Provide for depreciation as follows:
10.1 On vehicles at 20% per year using the reducing balance method. Note: Vehicles that cost R650000
were purchased on 01 December 2023. The purchase has been recorded.
10.2 On equipment at 10% per year using the fixed instalment method.Answer ALL questions in this paper.
QUESTION 1
REQUIRED
Use the information given below to complete the following financial statements:
1.1 Statement of Comprehensive Income for the year ended 29 February 2024.
1.2 Statement of Financial Position as at 29 February 2024.(Show the workings in
brackets next to the relevant details.)
Note: Some of the amounts have already been entered in the answer book.
INFORMATION
The following trial balance, adjustments and additional information were extracted from the records of Aerostat
Traders for the financial year ended 29 February 2024:
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