REQUIRED

Use the information provided below to prepare the Statement of Comprehensive Income of Cheshire Ltd for the year ended $31$ December $2023.$

INFORMATION

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

CHESHIRE LTD

PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $31$ DECEMBER $2023$

Debit $($R$)$

Credit $($R$)$

Balance Sheet Accounts Section

Ordinary share capital

$1450000$

Retained earnings

$250000$

Land and buildings

$2500000$

Vehicles $($cost$)$

$850000$

Equipment $($cost$)$

$500000$

Accumulated depreciation on vehicles

$300000$

Accumulated depreciation on equipment

$200000$

Debentures $(10\%$ p$.$a$.)$

$1250000$

Trading inventory

$550000$

Debtors control

$235000$

Provision for bad debts

$10000$

Bank

$5000$

Creditors control

$515000$

South African Revenue Services: Company tax

$140000$

Nominal accounts section

Sales

$4000000$

Cost of sales

$2050000$

Sales returns

$75000$

Maintenance

$40000$

Rates

$30000$

Carriage on sales

$45000$

Wages and salaries

$425000$

Stationery

$5000$

Bad debts

$10000$

Sundry expenses

$20000$

Insurance

$35000$

Telephone

$65000$

Water and electricity

$70000$

Directors$$ fees

$200000$

Auditor$$s fees

$25000$

Ordinary share dividends

$100000$

$7975000$

$7975000$

Additional information

$1.$

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

$1\mathrm{.}1$

Trading inventory, R$525000$

$1\mathrm{.}2$

Stationery, R$1000.$

$2.$

A notice from the municipality reflected the rates assessment for the year ended $31$ December $2023$ to be R$6000$ higher than the total amount paid during the financial year.

$3.$

Depreciation must be provided for as follows:

$3\mathrm{.}1$

On vehicles at $20\%$ per annum on the diminishing balance;

$3\mathrm{.}2$

On equipment at $10\%$ per annum on cost$.$

$4.$

A debtor, who owed R$20000,$ was declared insolvent. She was only able to pay $50\%$ of her debt, which has been received and recorded. The balance of her account must now be written off.

$5.$

The insurance total includes a premium of R$18000$ that was paid for the period $01$ June $2023$ to $31$ May $2024.$

$6.$

A statement from the auditors reflected the total audit fees for the financial year ended $31$ December $2023$ to be R$35000.$

$7.$

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

$8.$

Provide for interest on debentures for the year.

$9.$

An amount of R$2000$ for maintenance was inadvertently recorded as sundry expenses.

$10.$

An amount of R$32875$ was owed to South African Revenue Services for company tax on $31$ December $2023.$