QUESTION ONE $[25]$

The following information was extracted from the accounting records of Arnoldus Limited at $29$

February $2024$:

Pre$-$adjustment trial balance as at $29$ February $2024$ Debit Credit

Land and buildings at cost $5500000$

Vehicles at cost $1800000$

Vehicles: Accumulated depreciation $800000$

Equipment at cost $1500000$

Equipment: Accumulated depreciation $600000$

$11\%$ Fixed Deposit: Capitoc Bank $90000$

Inventory $75400$

Trade Receivables $64500$

Allowance for credit losses $5000$

Bank $34000$

Ordinary Shares $700000$

Retained Earnings $6306320$

Trade Payables $150000$

Sales $1050000$

Cost of Sales $358770$

Salaries and wages $360000$

Credit losses $7500$

Rates $22000$

Insurance $38900$

Interest on fixed deposit $6750$

Rent income $165000$

Depreciation $?$

$98170709817070$

Additional information:

$1.$ Physical stock take and subsequent valuation on a first$-$in$-$first$-$out basis revealed the value of

inventory on hand as at $29$ February $2024$ was R$65400$

$2.$ A section of the property is rented out to Eliza Wellness Centre since $1$ March $2023$ at a

monthly rental of R$15000.$ Rent for the year was received and recorded correctly.

$1$

$3.$ The management of Arnoldus Limited has determined that the allowance for credit losses

should be maintained at $10\%$ of carrying value Trade Debtors

$4.$ The balance in the insurance account at $29$ February $2024$ includes an annual insurance

premium of R$6000$ that was paid for the period $1$ June $2023$ to $31$ May $2024.$

$5.$ Interest of R$3150$ is still receivable on the fixed deposit as at $29$ February $2024.$

$6.$ Depreciation is still to be accounted for as follows:

a$.$ Vehicles $$ straight line basis over $5$ years

b$.$ Equipment $20\%$ on the diminishing balance method

Required:

Prepare the Statement of Comprehensive Income of Arnoldus Limited for the year ended $29$

February $2024$ to comply with the International Financial Reporting StandardQUESTION ONE $[25]$

The following information was extracted from the accounting records of Arnoldus Limited at $29$

February $2024$:

Pre$-$adjustment trial balance as at $29$ February $2024$ Debit Credit

Land and buildings at cost $5500000$

Vehicles at cost $1800000$

Vehicles: Accumulated depreciation $800000$

Equipment at cost $1500000$

Equipment: Accumulated depreciation $600000$

$11\%$ Fixed Deposit: Capitoc Bank $90000$

Inventory $75400$

Trade Receivables $64500$

Allowance for credit losses $5000$

Bank $34000$

Ordinary Shares $700000$

Retained Earnings $6306320$

Trade Payables $150000$

Sales $1050000$

Cost of Sales $358770$

Salaries and wages $360000$

Credit losses $7500$

Rates $22000$

Insurance $38900$

Interest on fixed deposit $6750$

Rent income $165000$

Depreciation $?$

$98170709817070$

Additional information:

$1.$ Physical stock take and subsequent valuation on a first$-$in$-$first$-$out basis revealed the value of

inventory on hand as at $29$ February $2024$ was R$65400$

$2.$ A section of the property is rented out to Eliza Wellness Centre since $1$ March $2023$ at a

monthly rental of R$15000.$ Rent for the year was received and recorded correctly.

$1$

$3.$ The management of Arnoldus Limited has determined that the allowance for credit losses

should be maintained at $10\%$ of carrying value Trade Debtors

$4.$ The balance in the insurance account at $29$ February $2024$ includes an annual insurance

premium of R$6000$ that was paid for the period $1$ June $2023$ to $31$ May $2024.$

$5.$ Interest of R$3150$ is still receivable on the fixed deposit as at $29$ February $2024.$

$6.$ Depreciation is still to be accounted for as follows:

a$.$ Vehicles $$ straight line basis over $5$ years

b$.$ Equipment $20\%$ on the diminishing balance method

Required:

Prepare the Statement of Comprehensive Income of Arnoldus Limited for the year ended $29$

February $2024$ to comply with the International Financial Reporting Standard