Quantum Ltd is a business that has traded for many years. The following balances were extracted from the general ledger on 30 September 2018.

Quantum Ltd

Trial balance as at 30 September 2018

	Dr. (N$)	Cr (N$)
sales		2,895,000.00
purchases	2,100,000.00
Interest on debentures	20,000.00
Salaries	254,000.00
Advertising	31,000.00
Trade receivables	179,000.00
Trade payables		295,000.00
Cash at bank	126,000.00
Dividend payable		50,000.00
Discount receivable		2,530.00
Stationery	45,550.00
Miscellaneous expenses	113,000.00
Bank charges	8,750.00
Allowance for credit losses		8,970.00
Credit losses	1,700.00
Ordinary share capital ( N$ 0.50 per share)		600,000.00
8% Preference share capital		250,000.00
10% debentures		400,000.00
Retained earnings (01 Oct 2017)		242,000.00
General reserve (01 Oct 2017)		171,000.00
Share premium		65,000.00
Land and Building at cost ( 01 Oct 2017)	430,000.00
Building - Accumulated depreciation (01 Oct 2017)		20,000.00
Plant and Machinery at cost ( 01 Oct 2017)	830,000.00
Plant and Machinery -Accumulated depreciation		222,000.00
Vehicles at cost (01 Oct 2017)	1,275,000.00
Vehicles - Accumulated depreciation (01 Oct 2017)		382,500.00
Inventory (01 Oct 2017)	190,000.00
	5,604,000.00	5,604,000.0

Additional information:
1. Inventory as at 30 September 2018 was valued at N$ 220 000.
2. Provide for income tax at 32%
3. Plant which costs N$ 350 000 with a carrying amount of N$ 274 000 on 1 October 2017 was sold for N$ 300 000 deposited into the bank account, this amount was erroneously omitted from the business records. Depreciation charge for plant and machinery for the ended 30 September 2018 is N$ 36 000. Plant and machinery relates to production.
4. The property which is mainly used for administrative purposes was acquired five years ago. The building portion was estimated at a cost N$ 100 000 and the estimated useful life of this property was fifty years at the time of purchase. As at 30 September 2018, the property was valued at N$ 800 000.
5. Miscellaneous expenses include N$ 9 000 paid in advance for insurance up to 31 May 2019 and an amount of N$ 15 000 relating to sales commission. Apart from sales commission miscellaneous expenses relate to administration.
6. Depreciation charge for vehicles for the year ended 30 September 2018 is N$ 75 000. This is to be allocated as follows:
 Administration: 75%
 Selling and distribution: 25%
7. On 30 September 2018 an invoice for N$ 3 000 was received for advertising.
8. Allowance for credit losses was to be reduced to N$ 8 000.
9. 8% preference shares are part of equity
10. The management wishes to provide for the following:
 Interest on debentures due
 A transfer to general reserve of N$ 22 000
 Auditors fee N$ 15 750
You are required to:
1. Prepare a statement of profit or loss and other comprehensive income for the year ended 30 September 2018. It should comply with the requirements of the Companies Act 71 of 2008 and International Financial Reporting Standards (IFRS)