Depreciation on equipment must be provided for at 10% p.a. according to the diminishing balance method.

The business donated goods worth R525. This is recorded as an expense.

$$\text{Donations Expense} = \text{R}525$$

The value of stationery used during the year is R2 820.

$$\text{Stationery Expense} = \text{R}2,820$$

The account of debtor D Ponti, amounting to R900, must be written off as irrecoverable.

$$\text{Bad Debts Expense} = \text{R}900$$

The loan statement shows the opening balance, repayments, and closing balance. We can find the interest capitalised (interest expense for the year) using the formula:
Opening Balance + Interest - Repayments = Closing Balance

$$\text{Interest} = \text{Closing Balance} - \text{Opening Balance} + \text{Repayments}$$ $$\text{Interest} = \text{R}239,820 - \text{R}262,000 + \text{R}51,000$$ $$\text{Interest} = \text{R}28,820$$

Rent has been received for thirteen months, and the rent was increased by R250 per month from 1 July 2024. The financial year ends on 31 August 2024. The total rent received (from the previous step's calculation) is R407,250.
Let $X$ be the monthly rent before 1 July 2024.
The rent for July and August 2024 (2 months) is $X + 250$.
The rent for the 10 months from September 2023 to June 2024 is $X$.
Since 13 months of rent were received, one month's rent is prepaid. This prepaid month is for September 2024, and its value is $X + 250$.
Total rent received = $10X + 2(X+250) + (X+250) = 13X + 750$.
We know the total rent received is R407,250.

$$13X + 750 = 407,250$$ $$13X = 407,250 - 750$$ $$13X = 406,500$$ $$X = \frac{406,500}{13} = 31,269.23$$

Now, calculate the rent income for the year (12 months):

$$\text{Rent Income for the year} = 10X + 2(X+250) = 12X + 500$$ $$\text{Rent Income for the year} = 12(31,269.23) + 500 = 375,230.76 + 500 = 375,730.76$$

The prepaid rent is the rent for one month at the new rate:

$$\text{Prepaid Rent} = X + 250 = 31,269.23 + 250 = 31,519.23$$

The telephone account for August 2024, amounting to R405, has been received but not yet paid. This is an accrued expense.

$$\text{Telephone Expense (Accrued)} = \text{R}405$$

An annual insurance premium of R1 140 was paid on 31 March 2024. The financial year ends on 31 August 2024.
Monthly insurance premium:

$$\text{Monthly Premium} = \frac{\text{R}1,140}{12} = \text{R}95$$

The insurance covers 5 months of the current financial year (April to August 2024).

$$\text{Insurance Expense for the year} = \text{R}95 \times 5 = \text{R}475$$

The remaining 7 months (September 2024 to March 2025) are prepaid.

$$\text{Prepaid Insurance} = \text{R}95 \times 7 = \text{R}665$$

Depreciation on vehicles is calculated at 15% p.a. on the cost price. A new vehicle with a cost of R120 000 was purchased on 1 May 2024.
The vehicle was used for 4 months in the current financial year (May, June, July, August).

$$\text{Depreciation on New Vehicle} = \text{R}120,000 \times 15\% \times \frac{4}{12}$$ $$\text{Depreciation on New Vehicle} = \text{R}120,000 \times 0.15 \times \frac{1}{3} = \text{R}6,000$$

(Note: Depreciation for any other vehicles cannot be calculated without their cost.)

Depreciation on equipment must be provided for at 10% p.a. according to the diminishing balance method.
(Note: The cost and accumulated depreciation of equipment are not provided, so this calculation cannot be completed.)

Here is a summary of the calculated adjustments:

• Donations Expense: $\boxed{\text{R}525}$
• Stationery Expense: $\boxed{\text{R}2,820}$
• Bad Debts Expense: $\boxed{\text{R}900}$
• Loan Interest Expense: $\boxed{\text{R}28,820}$
• Rent Income for the year: $\boxed{\text{R}375,730.76}$
• Prepaid Rent: $\boxed{\text{R}31,519.23}$
• Telephone Expense (Accrued): $\boxed{\text{R}405}$
• Insurance Expense for the year: $\boxed{\text{R}475}$
• Prepaid Insurance: $\boxed{\text{R}665}$
• Depreciation on New Vehicle: $\boxed{\text{R}6,000}$