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 1 450 000 Retained earnings 250 000 Land and buildings 2 500 000 Vehicles (cost) 850 000 Equipment (cost) 500 000 Accumulated depreciation on vehicles 300 000 Accumulated depreciation on equipment 200 000 Debentures (10% p.a.) 1 250 000 Trading inventory 550 000 Debtors control 235 000 Provision for bad debts 10 000 Bank 5 000 Creditors control 515 000 South African Revenue Services: Company tax 140 000 Nominal accounts section Sales 4 000 000 Cost of sales 2 050 000 Sales returns 75 000 Maintenance 40 000 Rates 30 000 Carriage on sales 45 000 Wages and salaries 425 000 Stationery 5 000 Bad debts 10 000 Sundry expenses 20 000 Insurance 35 000 Telephone 65 000 Water and electricity 70 000 Directors fees 200 000 Auditors fees 25 000 Ordinary share dividends 100 000 7 975 000 7 975 000

Additional information

1. Physical stocktaking on 31 December 2023 revealed the following inventories:

1.1 Trading inventory, R525 000

1.2 Stationery, R1 000.

2. A notice from the municipality reflected the rates assessment for the year ended 31 December 2023 to

be R6 000 higher than the total amount paid during the financial year.

3. Depreciation must be provided for as follows:

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

3.2 On equipment at 10% per annum on cost.

4. A debtor, who owed R20 000, 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 R18 000 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 R35 000.

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 R2 000 for maintenance was inadvertently recorded as sundry expenses.

10. An amount of R32 875 was owed to South African Revenue Services for company tax on 31 December

2023.