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QUESTION 2 [40 MARKS] On 30 June 2020, Stanford Limited had the following financial information available. R R 30,000 18,000 148,000 543,000 3,000 44,000 31,000 10% Debentures Cash and cash equivalents Administration and selling expenses Cost of sales Debenture interest General reserves Inventories at 30 June 2020 Authorised & Issued share capital: 1 million ordinary shares @ R1 cach 6% Preference shares @ R1 each Non-current assets at net book value Ordinary share dividends paid Preference share dividends paid Retained earnings as at 1 July 2019 Revenue Trade payables Trade receivable 1,000,000 400,000 1,960,000 150,000 24.000 206,000 1,167,000 31,000 37.000 2,896,000 2,896,000 Additional information provided: . There is an accrual of R9,000 on the administration and selling expenses. The company's accounting policy requires that non-current assets be depreciated at 10% p.a on a reducing balance method. This has been the depreciation policy for many years. At the executive committee level, it was voted that R25,000 be transferred to the general reserve account. Tax is due in the year profits are made and the tax rate is 28%. The company had not yet paid the taxes for the year even if they were due by 30 June 2020. Required: Prepare Stanford Limited's a. Statement of profit or loss and other comprehensive income for the year ending 30 (12) June 2020 b tatement of changes in equity for the year ending 30 June 2020 (8) ) C. Statement of financial position as at 30 June 2020 (20) NB: Each correct entry and total carries a mark except for the correct profit figure and tax which are 2 marks

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