REQUIRED Use the information provided below to prepare the Statement of Financial Position as at 28 February 2023. The notes to the financial statements are not required. Where applicable, show workings in the spaces provided in the answer book. INFORMATION The information given below extracted from the accounting records of Palace Traders on 28 February 2023, the end of the financial year. PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2023 Debit (R) Credit (R) Balance sheet accounts section Capital 1 650 000 Drawings 132 000 Land and buildings 1 254 000 Vehicles at cost 924 000 Equipment at cost 660 000 Accumulated depreciation on vehicles 528 000 Accumulated depreciation on equipment 369 600 Fixed deposit: Brits Bank (8% p.a.) 198 000 Trading inventory 154 000 Debtors control 176 000 Provision for bad debts 9 900 Bank 127 868 Creditors control 184 068 Mortgage loan: Brits Bank (20% p.a.) 330 000 Nominal accounts section Sales 2 076 600 Cost of sales 794 000 Sales returns 13 200 Salaries and wages 587 400 Bad debts 18 400 Stationery 30 000 Rates and taxes 58 500 Motor expenses 32 000 Advertising 23 600 Telephone 44 600 Electricity and water 66 800 Bank charges 8 200 Insurance 5 600 Interest on mortgage loan 26 400 Interest on fixed deposit 14 800 Rent income 171 600 5 334 568 5 334 568 ADJUSTMENTS AND ADDITIONAL INFORMATION 1. Stationery, R500, was donated to a school on 27 February 2023. This transaction was not recorded. 2. Physical stocktaking on 28 February 2023 showed the following on hand: 2.1 Trading inventory R149 000 2.2 Stationery R4 500 3. The account of a debtor must be written off, R1 600. 4. The provision for bad debts must be decreased by R900. 5. Rent income amounts to R15 600 per month. Make the necessary adjustment. 6. The water and electricity account for February 2023 was due to be paid on 02 March 2023, R7 000. 7. Rates and taxes include an amount of R7 500 that was paid for the next accounting period. 8. An amount of R750 appeared in the February 2023 bank statement for bank charges. This was not recorded. 9. The investment in fixed deposit was made on 01 March 2022 and it matures on 01 March 2025. Make the necessary adjustment for the interest. Interest is not capitalised. 10. The loan from Brits Bank was obtained on 01 September 2022. Provide for outstanding interest. Interest is not capitalised. Payments totalling R50 000 (excluding interest) will be made to Brits Bank in the next financial year. 11. Provide for depreciation as follows: 11.1 On equipment at 10% p.a. using the fixed instalment method. 11.2 On vehicles at 20% p.a. using the diminishing balance method. 12. The net profit for the year ended 28 February 2023 AFTER taking the above into account was R417 690.