se 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 $2023$

Balance Sheet Accounts Section

Ordinary share capital

Retained earnings

Land and buildings

Vehicles $($cost$)$

Equipment $($cost$)$

Accumulated depreciation on vehicles Accumulated depreciation on equipment Debentures $(10\%$ p$.$a$.)$

Trading inventory Debtors control Provision for bad debts Bank

Creditors control

South African Revenue Services: Company tax

Nominal accounts section

Sales

Cost of sales

Sales returns Maintenance

Rates

Carriage on sales Wages and salaries Stationery

Bad debts

Sundry expenses Insurance

Telephone

Water and electricity Directors$$ fees

Auditor$$s fees

Ordinary share dividends

$2$

Credit $($R$)$

$1450000250000$

$300000$

$2000001250000$

$550000235000$

$100005000$

$515000140000$

Debit $($R$)$

$500000850000500000$

$4000000$

$2$

$05000075000400003000045000$

$4250005000100002000035000650007000020000025000100000975000$

$7$

$7975000$

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

$2023.$

Answer rating: 100% (QA)

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