Prepare the statement of profit or loss and other comprehensive income for the year ended 31 December 2020 for Bennys Bargains. Use a format that is recommended in the International Financial Reporting Standards (IFRS)

Benny Jacobs has a trading business, Benny's Bargains. The following pre- adjustment trial balance was extracted from the accounting records for the financial year ended 31 December 2020: Debit R Credit R 172 980 36 000 84 000 52 500 336 000 112 500 54 000 66 000 3 600 56 400 855 000 Capital - Kaya Nene Drawings 7% Long term loan. Trade creditor Fixtures at cost Accumulated depreciation: Fixtures (1 January 2020) Inventory - 1 January 2020 Trade debtors Allowance for credit losses Bank balance Sales Sales returns Purchases Purchases returns Commission income Advertising Credit losses Consumables Electricity and water Interest on loan Rent expense Settlement discounts granted Salaries 11 400 390 000 18 000 13 200 14 400 10 800 50 400 49 200 5 580 62 400 3 600 165 600 1 311 780 1 311 780 Additional information: 1. Inventory-trading at 31 December 2020 was valued at R126 000. 2. A debtor's account of R600 must be recorded as a credit loss. The allowance for credit losses must be increased by R1 200. 3. Commission income of R1 620 has been earned but not yet received nor recorded. 4. The long term loan was entered into on 1 January 2019 at a fixed interest rate of 7% per year for a fixed period of five (5) years. Interest for the current year needs to be brought up to date. 5. Rent for the month of January 2021 has already been paid and is included in the rent expense shown in the above trial balance. Rent has remained unchanged during the period under review. 6. The December 2020 electricity and water account of R4 620 was received and paid in January 2021. This account is yet to be included in the above records. 7. Fixtures must be depreciated at 12,5% per year on the Diminishing Balance Method. During the year Benny purchased and installed fixtures for a capitalised cost of R15 000. The capitalised cost was paid in cash and is already included in the cost shown in the trial balance. The fixtures were put to use on 1 July 2020. 8. Benny's Bargains usually account for settlement discounts granted in accordance with the latest International Financial Reporting Standards (IFRS). This requires that all settlement discounts must be reported in the trading section of the statement of profit or loss and other comprehensive income