Inceptus (Pty) Ltd has asked you to help prepare the financial statements for the year ended 30 September 2021. The Trial balance of the company as of 30 September 2021 is set out below:

Trial Balance as of 30 September 2021

DR	CR
N$’000	N$’000
Ordinary Share Capital	21 000
Interest	900
Trade Receivables	20 200
Trade Payables	15 490
6% Long term loan	30 000
Distribution cost	12 800
Administrative expenses	8 228
Purchases	99 540
Sales	134 840
Retained earnings	17 820
Bank	1 930
Inventories as of 01 October 2020	20 730
Share premium	5 000
Land (cost)	35 900
Buildings (cost)	12 800
Fixtures and Fittings (cost)	6 950
Motor Vehicles (cost)	17 320
Office Equipment (cost)	5 970
Buildings-accumulated depreciation	9 020
Fixtures and Fittings-accumulated depreciation	4 370
Motor vehicles-accumulated depreciation	10 030
Office equipment-accumulated depreciation	2 320
Allowance for credit losses	620
Returns inwards	456
Returns outwards	714
Dividend	7 500
251 224	251 224

Other information:

1. The authorized share capital of the company, all of which has been issued consists of ordinary shares with a par value of N$0.50 each.
2. Inventories at the close of business on 30 September 2021 were valued at cost at N$13 870 000.
3. The corporation tax charge for the year has been calculated as N$5 190 000.
4. The land has been revalued by professional valuers by N$3 200 000.

The revaluation is to be included in the financial statements for the year ended 30 September 2021.

5. Goods sold to a customer on credit for N$121 000 in August 2021 which originally cost N$72 000 were returned to the company on 29 September 2021. No entries have been made in the accounts to reflect this return of goods.
6. Allowance for credit losses is to be 5% of the accounts receivable balance at the year-end.
7. The company ran a 4 monthly advertising campaign starting on 1 September 2021 for N$76 000.
8. Depreciation has not been accounted for yet and should be provided as follows:

• The building at 5% on the cost
• Fixtures and Fittings at 10% on the cost
• Office equipment at 10% reducing balance method
• Motor vehicle at 20% reducing balance method
• Motor vehicle at 20% reducing balance method

The Building, Fixtures & Fittings, and Office equipment are used for administrative purposes.

The motor vehicle is used to deliver goods to customers

9. Interest for the last 6 months of the year has not been included in the accounts.
10. The long-term loan was acquired on 1 October 2018. This loan is secured by land and building and is payable over a period of 10 years. A repayment of N$3 000 000 is repayable every 31 December of each year.
11. The directors resolved that N$5 million be transferred to the General reserve.

REQUIRED:

3.1 Prepare the statement of profit or loss and other comprehensive income for Inceptus (Pty) Ltd for the year ended 30 September 2021 to comply with minimum requirements of the Companies Act 2008 and International Financial Reporting Standards, using expenses by function. Comprehensive information is not required. 

3.2 Prepare the statement of changes in equity for Inceptus (Pty) Ltd for the year ended 30 September 2021 to comply with the minimum requirements of the Companies Act 2008 and International Financial Reporting Standards. Comprehensive information is not required. 

3.3 Prepare the notes to the financial statement for the year ending 30 September 2021 to comply with the minimum requirements of the Companies Act 2008 and International Financial Reporting Standards with respect to:

i) Statement of compliance

ii) Statement of significant accounting policies

iii) Borrowings