QUESTION $3$

$(20$ Marks$)$

REQUIRED

Prepare the Statement of Comprehensive Income for the year ended $31$ December $2023.$ Some of the amounts have been entered in the answer book for you.

INFORMATION

The information given below was extracted from the accounting records of Cheshire Limited on $31$ December $2023($the end of the financial year$).$

$\backslash$table$[[$CHESHIRE LIMITED$],[$PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $31$ DECEMBER $2023,,],[$Balance Sheet Accounts Section,Debit $($R$),],[$Ordinary share capital $($R$),,],[$Retained earnings,,$1600000],[$Land and buildings,$2700000,],[$Vehicles $($cost$),650000,],[$Equipment $($cost$),500000,],[$Accumulated depreciation on vehicles,,$250000],[$Accumulated depreciation on equipment,,$200000],[$Debentures $(10\%$ p$.$a$.),1800000,],[$Debtors control,,$10000],[$Provision for bad debts,$115000,],[$Bank$,,465000],[$Creditors control,$145000,],[$South African Revenue Services: Company tax,,$],[,,],[$Nominal accounts section,$2055000,],[$Sales$,25000,],[$Purchases$,,165000],[$Sales returns,$550000,],[$Purchases returns,$40000,],[$Opening inventory,$35000,],[$Carriage on purchases,$25000,],[$Maintenance$,50000,],[$Rates$,400000,],[$Carriage on sales,$5000,],[$Wages and salaries,$10000,],[$Stationery$,35000,],[$Bad debts,$15000,],[$Sundry expenses,$35000,],[$Insurance$,40000,],[$Telephone$,240000,],[$Water and electricity,$25000,],[$Directors$\text{'}$ fees,$100000,],[$Auditor$\text{'}$s fees,$7975000,7975000],[$Ordinary share dividends,,$]]$

Additional information

Physical stocktaking on $31$ December $2023$ revealed the following inventories:

$1\mathrm{.}1$ Trading inventory. R$180000$

$1\mathrm{.}2$ Stationery, R$1000.$

A notice from the municipality reflected the rates assessment for the year ended $31$ December $2023$ to be R$24000.$

Depreciation must be provided as follows:

$3\mathrm{.}1$ On vehicles, R$80000.$

$3\mathrm{.}2$ On equipment at $10\%$ per annum on cost$.$ Note: Equipment with a cost price of R$100000$ was purchased on $01$ July $2023.$ This transaction has been recorded.

A debtor, who owed R$5000,$ was declared insolvent. Cheshire Limited received and recorded $40\%$ of the amount owed. The balance of his account must now be written off.

The insurance total includes an insurance premium of R$6000$ that was paid for the period $01$ April $2023$ to $31$ March $2024.$

An amount of R$10000$ was due to be paid for audit fees on $02$ January $2024.$

The provision for bad debts must be increased to R$11000.$

Provide for interest on debentures that is yet to be paid.

An amount of R$69535$ was overpaid to South African Revenue Services for company tax.