The following list of account balances were extracted from the accounting records ofDon's Electrical Services as at 28 February 2021:List of accountsDebit - RCredit - RLand and buildings at cost250 000Vehicles at cost155 000Accumulated depreciation: Vehicles -1 March 202090 00Equipment at cost85 000Accumulated depreciation: Equipment -1 March 202012% Fixed deposit: Lock Bank40 00030 000Inventory: Consumables -1 March 202021 000Debtors' control25 000Allowance for credit losses1 125Bank80 373Long tem borowing: 10% per year37 500Creditors' control20 835Capital: Don Dude197 500Drawings89 327Service fees524 835Interest on fixed deposit1 888Rent income19 180Advertising9735Credit losses2 100Communication costs5 078Consumables purchased84 148Other operating expenses92 902Interest on borrowings3 000932 663932 663Additional information that needs to be taken into account:1. Stock taking was done on 28 February 2021 and the consumable inventory on handwas valued at R32 700.2. The advertising amount includes a contract for R2 400 that was taken for the period1 January 2021 to 30 June 2021.3. Don received an amount of R600 from an insolvent debtor which was corectlyrecorded. However this was only 25% of the total amount owed by the debtor. Theoutstanding 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 200.8. Investment in the fixed deposit was made 31 March 2020 and matures on 31 May2022. Record the outstanding interest on the fixed deposit.7. Vehicles and Equipment must be depreciated as follows for the curent 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 settledby 4 equal annual instalments beginning 31 August 2020. Provide for theoutstanding interest due for the current year. A statement dated 28 February 2021from the creditor revealed the following:9.DateDetailsAmount - R1 March 2020Balance50 00031 August 2020Less: Payment of 14 instalment(12 500)28 February 2021 Balance37 50010. Rent has been received for the period 1 March 2020 to 31 March 2021. Rent wasincreased by 10% with effect from 1 September 2020. Adjust the above records forthe amount received in advance for March 2021..Required:Prepare the statement of profit or loss and other comprehensive income (SOCI) for theyear ended 28 February 2021 to comply with the requirements of Intemational FinancialReporting Standards (IFRS) appropriate to Don's Electrical Services.Round up all calculations to the nearest Rand.Show all workings.

Name: The following list of account balances were extracted from the accoun
Uploaded: 2024-03-05T11:47:04.000Z
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Description: The following list of account balances were extracted from the accounting records ofDon's Electrical Services as at 28 February 2021:List of accountsDebit - RCredit - RLand and buildings at cost250 000Vehicles at cost155 000Accumulated depreciation:

Statement of profit and loss and other comprehensive income is a financial statement summarizing the…

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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 Debit - R Credit - R Land and buildings at cost 250 000 Vehicles at cost 155 000 Accumulated depreciation: Vehicles-1 March 2020 90 000 Equipment at cost Accumulated depreciation: Equipment -1 March 2020 12% Fixed deposit: Lock Bank 85 000 40 000 30 000 Inventory: Consumables -1 March 2020 21 000 Debtors' control 25 000 Allowance for credit losses 1 125 Bank 80 373 Long tem boTowing: 10% per year 37 500 Creditors' control 20 835 Capital: Don Dude 197 500 Drawings 89 327 Service fees 524 835 Interest on fixed deposit 1 088 Rent income 19 180 Advertising 735 2 100 6 078 Credit losses Communication costs Consumables purchased 84 148 Other operating expenses 02 002 Interest on borrowings 3 000 932 663 932 663 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 R000 from an insolvent debtor which was comectly recorded. However this was only 25% of the total amount owed by the debtor. The outstanding balance must now be written off as imecoverable. 4. The Allowance for oredit 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 Marah 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 vehiales 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: 0. Date Details Amount - R March 2020 Balance 50 000 31 August 2020 Less: Payment of 1" instalment (12 500) 28 February 2021 Balance 37 500 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 oomprehensive income (SOCI) for the year ended 28 February 2021 to comply with the requirements of Intemational Financial Reporting Standards (IFRS) appropriate to Don's Electrical Services.