QUESTION $1(20$ Marks$)$

REQUIRED

Use the information provided below to prepare the Statement of Financial Position of Lynwood Limited as at $31$ August $2023.$ The notes to the financial statements are not required. Show all workings.

INFORMATION

The following balances were obtained from the accounting records of Lynwood Limited after some of the adjustments and closing transfers were completed on $31$ August $2023,$ the end of the financial

year.

R

Inventory $315000$

Accounts receivable $92000$

Loan: Lindor Bank $(19\mathrm{.}5\%)200000$

Equipment $($Cost$)1980000$

Accumulated depreciation on equipment $?$

Cash float $13500$

Accounts payable $211000$

Provision for bad debts $?$

Accrued income $?$

Ordinary share capital $1161000$

Retained income $540000$

Company tax payable $18000$

Bank $($DR$)99000$

Accrued expenses $?$

Dividends payable $161000$

The following adjustments must be made:

$$ The account of a debtor who owed R$2000$ must be written off.

$$ The provision for bad debts must be adjusted to $5\%$ of debtors.

$$ The rent income account reflected a total of R$99000$ which was for rent for the period $01$ September $2022$ to $31$ July $2023.$ Make the necessary adjustment.

$$ Interest on loan was owed for the last four months of the financial year. Interest is not capitalised.

$$ The equipment was acquired on $01$ March $2023.$ Depreciation must be provided at $20\%$ per annum using the reducing balance method.