Additional information and adjustments The rent for March 2019 has already been received. The value of inventories according to physical stocktaking as at 28 February 2019 are as follows: * Trading inventory R86 000 * Stationery R500 2. 3. An invoice received for an advertisement was erroneously debited to sundry expenses account, R2 400. 4. The telephone account for February 2019 has not yet been paid, R900. 5. Bank charges, which appeared on the bank statement for February 2019, were not yet recorded, R500. 6. The insurance account includes a premium of R2 400 that was paid for the period 01 June 2018 to 31 May 2019. Provide for the outstanding interest on fixed deposit. The investment in fixed deposit was made on 01 March 2018, Provide for the outstanding interest on loan, R560. 8. Create a provision for bad debts equal to 5% of trade debtors. 9. Provide for depreciation on equipment at 15% per year, using the diminishing balance method. 10. END OF PAPER 7. Pensi Traders Credit (R) Debit (R) PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2019 595 800 Balance sheet accounts section 240 000 359 300 75 000 Capital Drawings Land and buildings Equipment at cost Accumulated depreciation on equipment Fixed deposit: AlIB Bank (8% p.a.) Trading inventory Debtors control 33 000 17 000 90 000 26 000 156 000 500 Bank Cash fioat 24 000 48 000 Creditors control Loan: AIB Bank Nominal accounts section 1 060 000 Sales 600 000 Cost of sales 20 000 Sales returns 98 000 Salaries and wages 18 200 Rent income 1 000 Interest on fixed deposit Stationery Advertising Telephone Electricity and water 5 000 27 000 9 000 13 000 6 000 Rates and taxes 2 000 Bank charges 8 000 Insurance 5 200 Interest on loan 23 000 Sundry expenses 1 780 000 1 780 000 QUESTION 5 FINANCIAL STATEMENTS (20 MARKS) The trial balance and additional information given below were extracted from the accounting records of Pensi Traders on 28 February 2019, the end of the financial year. REQUIRED Use the trial balance, adjustments and additional information to prepare the Statement of Comprehensive Income according to the following format: Sales Cost of sales Gross profit Other operating income Gross operating income Operating expenses Operating profit Interest income Interest expense Net profit for the year