Complete the following notes: Ordinary share capital, Retained income. Prepare the Statement of Financial Position.

Here's a breakdown of the required notes and the Statement of Financial Position based on the provided information and adjustments. 1.1 Complete the following notes: Note 7: Ordinary Share Capital No information is provided in the problem to determine the value of Ordinary Share Capital. Therefore, it cannot be completed. Note 8: Retained Income The Statement of Comprehensive Income explicitly states "Net profit after tax for the year (Note 8): R 132 440". Assuming the question refers to this value for Note 8, as no opening balance or dividends are provided for a full reconciliation. Retained Income (Net profit for the year): R 132 440 1.2 Prepare the Statement of Financial Position. First, we'll perform the necessary calculations for each line item. Calculations for Statement of Financial Position: 1. Inventory (Trading Stock): The pre-adjustment balance was R 181 890, and there was a trading stock deficit of R 5 500. Trading Stock = R 181\,890 - R 5\,500 = R 176\,390 2. Trade and Other Receivables: Debtors' list: R 133 022 Less: Write-off of overdue account: R 4 400 Adjusted debtors: R 133 022 - R 4 400 = R 128 622 Less: New provision for bad debts: R 11 440 Net Trade and Other Receivables = R 128\,622 - R 11\,440 = R 117\,182 3. Prepaid Lease: The lease of vehicle expense is R 52 800 for the year. Since it's paid one month in advance, one month's payment is prepaid. Monthly Lease Expense = R 52\,80012 = R 4\,400 Prepaid Lease = R 4 400. 4. Long-term Loan: From the previous calculation (loan statement): Balance at the end of the year: R 618 737.76 Fixed monthly repayments: R 8 120 Interest for the next financial year: R 38 640 The current portion of the loan is the principal amount repayable in the next 12 months. Total Annual Repayments = R 8\,120 × 12 = R 97\,440 Current Portion (Principal) = Total Annual Repayments - Interest for next year Current Portion (Principal) = R 97\,440 - R 38\,640 = R 58\,800 Non-current Portion = Closing Balance - Current Portion Non-current Portion = R 618\,737.76 - R 58\,800 = R 559\,937.76 5. Trade and Other Payables: Creditors' list: R 94 612 Accrued Audit Fees: 20% of the year's audit fees are outstanding. The expense of R 48 400 represents 80% of the total. Total Audit Fees = R 48\,4000.80 = R 60\,500 Accrued Audit Fees = R 60\,500 - R 48\,400 = R 12\,100 Accrued Insurance: The premium increased by R355 from 1 November 2025. The insurance for February 2026 is owed. Let P be the monthly premium before November 2025. 8P + 4(P + R 355) = R 26\,620 12P + R 1\,420 = R 26\,620 12P = R 25\,200 P = R 2\,100 The new monthly premium (from Nov 2025) is R 2 100 + R 355 = R 2 455. Accrued Insurance (for February 2026) = R 2 455. Rent Received in Advance: Rent was paid until 30 April 2026 (2 months beyond year-end). Monthly Rent Income = R 73\,92012 = R 6\,160 Rent Received in Advance = R 6\,160 × 2 = R 12\,320 Total Trade and Other Payables: R 94\,612 + R 12\,100 + R 2\,455 + R 12\,320 = R 121\,487 6. Income Tax Payable: From the Statement of Comprehensive Income, Income Tax is R 56 760. Assuming this is the amount payable at year-end. Income Tax Payable = R 56\,760 Statement of Financial Position on 28 February 2026 | ASSETS | R | | :----------------------------------- | :------------------------------- | | Non-current assets | | | Property, Plant and Equipment | Not determinable | | Fixed deposit | R 142 527 | | | | | Current assets | | | Inventory | R 176 390 | | Trade and other receivables | R 117 182 | | Prepaid lease | R 4 400 | | Cash and cash equivalents | Not determinable | | | | | TOTAL ASSETS | Not determinable | | | | | EQUITY AND LIABILITIES | | | Equity | | | Ordinary share capital | Not determinable | | Retained income | R 132 440 | | | | | Non-current liabilities | | | Long-term loan | R 559 937.76 | | | | | Current liabilities | | | Trade and other payables | R 121 487 | | Current portion of long-term loan | R 58 800 | | Income tax payable | R 56 760 | | | | | TOTAL EQUITY AND LIABILITIES | Not determinable | Note: The Statement of Financial Position cannot be fully completed or balanced due to missing information regarding Property, Plant and Equipment, Ordinary Share Capital, and Cash and Cash Equivalents. Drop the next question!