Need help with question 3

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BACHELOR OF COMMERCE YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE [20] QUESTION THREE The following list of account balances were extracted from the accounting records of Don's Electrical Services as at 28 February 2021: List of accounts Land and buildings at cost Vehicles at cost Credit - R Debit - R 250 000 155 000 90 000 85 000 40 000 Accumulated depreciation: Vehicles - 1 March 2020 Equipment at cost Accumulated depreciation: Equipment - 1 March 2020 12% Fixed deposit: Lock Bank Inventory: Consumables -1 March 2020 30 000 21 000 25 000 Debtors' control 1 125 Allowance for credit losses 80 373 Bank 37 500 20 835 197 500 Long term borrowing: 10% per year Creditors' control Capital: Don Dude Drawings Service fees 89 327 524 835 1 688 Interest on fixed deposit 19 180 Rent income 9735 Advertising 2 100 Credit losses 5 078 84 148 Communication costs Consumables purchased Other operating expenses Interest on borrowings 92 902 3 000 932 663 932 663 25 REGENT BUSINESS SCHOOL (RBS) - JANUARY 2022
BACHELOR OF COMMERCE YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE Additional information that needs to be taken into account: 1. Stock taking was done on 28 February 2021 and the consumable inventory on hand was valued at R32 700. 2. The advertising amount includes a contract for R2 400 that was taken for the period 1 January 2021 to 30 June 2021. 3. Don received an amount of R600 from an insolvent debtor which was correctly recorded. However this was only 25% of the total amount owed by the debtor. The outstanding balance must now be written off as irrecoverable. 4. The Allowance for credit losses must be increased by R250. 5. Communication costs include valid prepaid phone cards to the value of R1 200. 6. Investment in the fixed deposit was made 31 March 2020 and matures on 31 May 2022. Record the outstanding interest on the fixed deposit. 7. Vehicles and Equipment must be depreciated as follows for the current year; Vehicles at 20% on cost, and • Equipment at 15% using the diminishing balance method. No vehicles or equipment were bought or sold during the year. 8. The long term borrowing was taken on 31 July 2019 and the loan was to be settled by 4 equal annual instalments beginning 31 August 2020. Provide for the outstanding interest due for the current year. A statement dated 28 February 2021 from the creditor revealed the following: 9. 26 REGENT BUSINESS SCHOOL (RBS) - JANUARY 2022
BACHELOR OF COMMERCE YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE Amount - R Details Date 50 000 1 March 2020 Balance (12 500) 31 August 2020 Less: Payment of 1st instalment 37 500 28 February 2021 Balance 10. Rent has been received for the period 1 March 2020 to 31 March 2021. Rent was increased by 10% with effect from 1 September 2020. Adjust the above records for the amount received in advance for March 2021. Required: Prepare the statement of profit or loss and other comprehensive income (SOCI) for the year ended 28 February 2021 to comply with the requirements of International Financial Reporting Standards (IFRS) appropriate to Don's Electrical Services. Round up all calculations to the nearest Rand. Show all workings.