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Everest is a sole trader that has a $31$ December $2016$ financial year end. The business

sells a range of camping gear to a large customer base. Per inspection of the Statement of Financial Position as at $31$ December $2015,$ the owner's equity balance amounted to R$537800.$

The following information is relevant for the preparation of the financial statements for the year ended $31$ December $2016.$

The profit for the period for the year ended $31$ December $2016$ amounted to R$435000.$ The following is an extract from the trial balance that was prepared by the accountant as at $31$ December $2016$:

$\backslash$table$[[$Account Name,$\backslash$table$[[$DR$],[$Rand$]],\backslash$table$[[$CR$],[$Rand$]]],[$Bank$,34800,],[$Vehicles$,197000,],[$Inventory$,105600,],[$Long term loan,,$56000],[$Equipment$,567800,],[$Accounts receivable,$123400,]]$

The above profit and trial balance figures were however calculated before taking into account the following adjustments:

a$)$ Mr Everest, the owner took camping gear with a cost of R$4500$ as a gift for his nephew. The selling price of this gear amounted to R$10500.$

b$)$ A new point of sales system was installed on $30$ June $2016$ for an amount of R$15600$ cash. The system is expected to operate over a period of $8$ years after which it will need to be replaced.

c$)$ Included in the profit figure is an amount of R$60000$ for water and electricity for months January $2016$ to November $2016.$ The invoice for December $2016$ was not captured as the payment in relation to the invoice had not been made by $31$ December $2016.$ The amount per the December $2016$ invoice amounted to R$4500.$ Payment of the R$4500$ was made in early January $2017.$

d$)$ The profit for the period was calculated taking into account cash drawings made by the owner during the year of R$67000.$

e$)$ Included in the profit figure is an amount of R$12500$ for advertising in relation to the maintenance of the business's website. The amount of R$12500$ was paid on $1$ July $2016$ and it was agreed with the supplier that the period of service would extend $8$ months from the date of payment.

f$)$ A donation of camping gear was given to a school in sponsorship of their camping expedition. The cost of the goods amounted to R$6700.$ The goods had a selling price of R$22000.$ No record has been made regarding this transaction.

$2$

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