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and$\%20$Analysis$\%20$Supplementary$\%200$SA$\%20(3).$pdf

$5/10$

$100\%$

QUESTION $3$

$(20$ Marks$)$

REQUIRED

Use the information provided below to prepare the Statement of Comprehensive Income of Oscar Limited for the year ended $28$ February $2025.$

INFORMATION

The trial balance, additional information and adjustments given below were extracted from the accounting records of Oscar Limited on $28$ February $2025,$ the end of the financial year.

$\backslash$table$[[$OSCAR LIMITED$],[$PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $28$ FEBRUARY $2025],[,$Debit $($R$),$Credit $($R$)],[$Balance sheet accounts section,,$],[$Ordinary share capital,,$4000000],[$Retained eamings,,$421000],[$Land and buildings,$4035000,],[$Equipment at cost$,1680000,],[$Accumulated depreciation on equipment,,$306000],[$Fixed deposit: Leo Bank $(10\%$ p$.$a$.),150000,],[$Trading inventory,$810000,],[$Debtors control,$238200,],[$Bank$,450000,]]$

$\backslash$table$[[$Cash float,$5500,],[$Creditors control,,$225000],[$South African Revenue Services: Company tax,$600000,],[$Loan: Leo Bank,,$437500],[$Nominal accounts section,,$],[$Sales$,,8810000],[$Cost of sales,$4377500,],[$Sales retums,$143000,],[$Salaries and wages,$900000,],[$Rent income,,$162500],[$Commission income,,$8000]]$

$6/10$

$100\%$

$\backslash$table$[[$Consumables$,37000,],[$Advertising$,146300,],[$Telephone$,86000,],[$Electricity and water,$118500,],[$Bank charges,$14000,],[$Insurance$,74000,],[$Director$\text{'}$s fees,$360000,],[$Audit fees,$40000,],[$Interest on loan,$87000,],[$Sundry expenses,$18000,],[,14370000,14370000]]$

Additional information and adjustments

According to physical stocktaking the value of trading inventory on $28$ February $2025$ was R$790000.$

Consumables used during the accounting period amounted to R$34000.$

Rent was received for the period $01$ March $2024$ to $31$ March $2025$ and the monthly rental was unchanged during this period.

The electricity and water account for February $2025,$ R$12000,$ was due to be paid on $05$ March $2025.$

An invoice for advertising was received from a local newspaper but no entry was made for this, R$30000.$

$\frac{6}{10}$

$100\%$

R$30000.$

$6.$ The insurance total includes an amount of R$15000$ that was paid for the period $01$ June $2024$ to $31$ May $2025.$

$7.$ The bank statement reflected a cash deposit fee of R$200$ that was not recorded in the books of Oscar Limited.

$8.$ Interest is owed to Oscar Limited on the fixed deposit for the entire financial year.

$9.$ Provide for depreciation on equipment at $20\%$ per year using the diminishing balance method.

$10.$ S$.$ Broad, a debtor who owed R$4000,$ was declared insolvent. His estate paid $60\%$ of the amount owed and this has been recorded. The balance of his account must now be written off.

$11.$ A payment of R$8000$ for telephone was erroneously entered in the sundry expenses account. Correct the error.

$12.$ An amount of R$7000$ was still owed to South African Revenue Services for company tax.