QUESTION ONE

$[30]$

Zarro $($Pty$)$ Ltd is a company that specialises in offering IT services and support to their clients throughout South Africa. The accountant of Zarro $($Pty$)$ Ltd has prepared and provided the following to you:

Pre$-$adjusted Trial Balance on $29$ February $2024$

$\backslash$table$[[,$R Debit,R Credit$],[$Capital$,,3000000],[$Drawings$,70000,],[$Fixed deposit: City Bank $(6\%$ per annum$),600000,],[$Land and buildings,$1650000,],[$Vehicles$,880000,],[$Equipment$,365000,],[$Accumulated depreciation: Vehicles,,$468000],[$Accumulated depreciation: Equipment,,$105000],[$Trading inventory,$400500,],[$Accounts receivable,$200000,],[$Allowances for credit losses,,$8700],[$Mortgage loan $(12\%$ p$.$a$.),,350000],[$Bank$,170000,],[$Accounts payable,,$42280],[$Sales$,,2700000],[$Sales returns,$90000,],[$Cost of sales,$1550000,],[$Rent income,,$110000],[$Interest on mortgage loan,$38500,],[$Repairs and maintenance,$215000,],[$Salaries and wages,$320000,],[$Marketing expenses,$45000,],[$Stationery$,67500,],[$Bank charges,$14800,],[$Sundry expenses,$79530,],[$Credit losses,$18250,],[,{6783980}_{?},6783980]]$no

Additional information:

a$)$ Stationery used amounted to R$55000.$

b$)$ The account of Cyril Rambo, a debtor$/$receivable$,$ must be written off as irrecoverable, valued at R$2000.$

c$)$ The company accountant agreed that the allowance for credit losses after adjustments should be R$6000$ as at $29$ February $2024.$

d$)$ Provide for depreciation as follows:

a$.$ Equipment at $15\%$ p$.$a$.$ on the reducing$-$balance method.

b$.$ Vehicles at $18\%$ on cost$.$

e$)$ The tenant has not yet paid the rent for February $2024,$ rent is R$120000$ per annum.

f$)$ The interest on a loan for February $2024$ has neither been recorded nor paid.

g$)$ Account for interest on the fixed deposit for the entire year.

REQUIRED:

Prepare the Statement of Comprehensive Income of Zarro $($Pty$)$ Ltd for the year ended $29$ February $2024.$ Show all relevant workings. Ignore Taxation. Use the format below. However, some elements of the income statement have been deliberately left out for you to complete:

$\backslash$table$[[$Sales$,],[$Cost of Sales,$],[$Gross profit,$],[$Other income,$],[$Less: Operating expenses,$],[$Profit before interest and tax $($PBIT$),],[$Finance Costs,$],[$Net profit$/($loss$)$ for the year,$]]$