Financial Reporting and Analysis Suppl...

Answer ALL questions.

$(100$ MARKS$)$

QUESTION $1$

$(20$ Marks$)$

REQUIRED

Prepare the Statement of Comprehensive Income of Ryobi Traders for the year ended $29$ February $2024.$

INFORMATION

RYOBI TRADERS

PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $29$ FEBRUARY $2024$

$\backslash$table$[[,$Debit $($R$),$Credit $($R$)],[$Balance sheet accounts section,,$],[$Capital$,,481400],[$Drawings$,228000,],[$Vehicles at cost$,560000,],[$Equipment at cost$,340000,],[$Accumulated depreciation on vehicles,,$276000],[$Accumulated depreciation on equipment,$208000,],[$Trading inventory,$98000,],[$Debtors control,,$1000],[$Provision for bad debts,$71600,],[$Bank$,,1200000],[$Creditors control,,$210000],[$Loan: Mi Bank $(16\%$ p$.$a$.),,],[$Nominal accounts section,$720000,],[$Sales$,10000,],[$Cost of sales,$258000,],[$Sales returns,$52000,],[$Salaries and wages,$38000,],[$Motor expenses,$14000,],[$Electricity and water,$2000,],[$Insurance$,6000,],[$Bad debts,,$],[$Stationery$,,]]$

$\backslash$table$[[$Rent expense,$66000,],[$Bad debts recovered,,$4000],[$Telephone$,18000,],[$Bank charges,$10000,],[$Interest on loan,$18000,],[$Commission income,,$18000],[,2717600,2717600]]$ Financial Reporting and Analysis Suppl...

Additional information and adjustments

Physical stocktaking on $29$ February $2024$ revealed the following inventories:

$1\mathrm{.}1$ Trading inventory, R$200000$

$1\mathrm{.}2$ Stationery, R$600.$

Rent has been paid up to $31$ January $2024.$ Make the necessary adjustment.

A debtor who owed R$2000$ was declared insolvent. His account must now be written off.

The provision for bad debts must be decreased by R$8400.$

Provide for the outstanding interest on the loan from Mi Bank, R$15600.$

The telephone account for February $2024$ was due to be paid on $02$ March $2024,$ R$1800.$

According to the bank statement service fees of R$600$ were levied by the bank. This has not been recorded.

Received R$6000$ from H$.$ Lino whose account was previously written off. No entry was made for this.

A debtor whose account was overdue for one month must be charged interest at $12\%$ p$.$a$.$ on the account balance of R$10000.$

Provide for depreciation as follows:

$10\mathrm{.}1$ On vehicles at $20\%$ per annum using the diminishing balance method.

$10\mathrm{.}2$ On equipment at $10\%$ per annum on cost$.$