The following trial balance was extracted from the accounting records of Lambda CC on 31

March 2022. The members agreed to share the ownership and profits of the close corporation equally and that their respective contributions to the close corporation would be equal as well.

Inventory 1 April 2021                               75000dr

Accounts receivable                                125 000 dr

Short-term loan term member: Cathy                                  20000 cr

Short-term loan term member: Abby                                   45000 cr

Advertising expense                               12000 dr

Credit losses                                            15000 dr

Land and buildings (cost)                       235 000 dr

Accumulated depreciation: Land & Buildings                      10000 cr

Equipment (cost)                                        25000 dr

Accumulated depreciation: equipment                               10000 cr

Accounts payable                                                                     50000 cr

Bank                                                            10020 dr

Administrative expenses                           19980 dr

Purchases                                               1 100 000 dr

Sales                                                                                        1 400 000 cr

Stationery                                                 10000 dr

insurance                                                                                 15000 dr

Salaries and wages                                  68000 dr

Members contribution                                                            100 000 cr

Undrawn profit                                                                             75000 cr

Additional information

Inventory on 31 March 2022 was valued at NS52 000

Interest at the rate of 6% per annum is to be provided on the opening balances on the members loan accounts.

Members salaries for the year are as follows:

Cathy: N$40 000

Abby: N$30 000

The non-current assets are depreciated as follows:

Equipment at the rate of 10% per annum based on reducing balance method.

Building at 5% per annum on cost. The building is valued at N$100 000.

Income tax is charged at the rate at 30%

The members authorized a distribution of N$60 000 for the year ended 31 March 2022 payable on 20 April 2022.

The amount paid for the insurance was for a contract taken out on 01 January 2022 in respect of the insurance cover for the period ending 31 December 2022

YOU ARE REQUIRED TO:

1. Prepare the statement of profit or loss and other comprehensive incomes of Lambda CC for the year ended 31 March 2022.