Answer ALL questions in this paper.

QUESTION $1$

$(20$ MARKS$)$

REQUIRED

Use the information provided below to prepare the Statement of Comprehensive Income for the year ended

$28$ February $2023.$

INFORMATION

Adjustments and additional information

Stocktaking on $28$ February $2023$ revealed the following inventories:

$1\mathrm{.}1$ Trading inventory R$220000$

$1\mathrm{.}2$ Stationery R$4000$

The telephone account for February $2023,$ R$6000,$ was due to be paid on $01$ March $2023$

A debtor who was declared insolvent paid R$900$ which represented $30\%$ of her debt. The balance of

her account must now be written off.

The provision for bad debts must be decreased to R$14000.$

Rent has been received up to $31$ March $2023.$ Note: The rental was increased by R$2000$ per month

with effect from $01$ November $2022.$

The insurance total includes an annual premium of R$15000$ that was paid for the period $01$ June $2022$

to $31$ May $2023.$

Provide for outstanding interest on the mortgage loan for February $2023.$

Provide for the outstanding interest on fixed deposit. The investment in fixed deposit was made on

$01$ September $2022.$

A payment for the annual service of a motor vehicle was not recorded, R$5000.$

Provide for depreciation as follows:

$10\mathrm{.}1$ On equipment at $10\%$ p$.$a$.$ on cost$.$

$10\mathrm{.}2$ On vehicles at $20\%$ p$.$a$.$ using the diminishing balance method. Note: A vehicle with a cost price of