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QUESTION THREE

$[25]$

The following list of balances was taken from the books of Orange Traders, a fruit and vegetable distributor as at $28$ FEBRUARY $2020,$ the end of the financial year:

$\backslash$table$[[$Capital$,60500],[$Drawings$,3400],[$Loan: NRB$,70000],[$Inventory: $1$ March $2019,13760],[$Provision for bad debts,$150],[$Sales$,250620],[$Purchases$,116040],[$Sales returns,$250],[$Purchases returns,$1150],[$Rent income,$10500],[$Salaries and wages,$77500]]$

$\backslash$table$[[$Railage on sales,$1600],[$Interest on loan,$6300],[$Packing material,$3600],[$Discount received,$400],[$Bad debts,$300],[$Stationery$,5400],[$Insurance$,660],[$Printing$,1350],[$Railage on purchases,$2500]]$

Additional Information:

$($a$)$ Inventory on hand at $28$ February $2020$ amounts to R $15350.$

$($b$)$ Depreciation must be provided as follows:

Vehicles

R $3400$

Equipment $R,560$

$($c$)$ The loan was granted on $1$ March $2018$ at $12\%$ p$.$a$.,$ payable every three months. Interest for the period $1$ December $2019$ to $28$ February $2020$ is payable on $1$ March $2020.$

$($d$)$ A store room was sublet from $1$ June $2019$ at R $1050$ per month.

$($e$)$ An amount of R$120$ was paid to Vesta Insurers as an advance premium for March $2020.$

$($f$)$ An account of R$1350$ was received from Prints Printers for the printing of documents. This must still be recorded.

Required:

Prepare the Statement of Comprehensive Income $($Income Statement$)$ for the year ended $28$ February $2020.$

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