Smiling Incorporated has a financial year-end of 31 August 2022. The trial balance as at this date is provided as follows:

Description

Debit Credit

Motor vehicles 55 000

Accumulated depreciation on motor vehicles 10 000

Debtors control 41 050

Bank: ABSA 8 500

Bank: FNB 1 200

Allowance for credit loss 4 105

Equipment 32 000

Accumulated depreciation on equipment 2 100

Creditors control 18 000

Accrued expenses 1 500

Share capital 3 000

Retained earnings 31 800

Rental income 25 250

Income received in advance 3 200

Inventory: Consumables 800

Inventory: Finished products 8 500

Water and electricity 13 200

Cleaning 4 100

Sale of goods - 156 000

Credit loss 7 305

Discount allowed 3 500

Salaries and wages 65 250

Printing and stationery 16 950

256 155 256 155

The following transaction have not been recorded:

1. A debtor returned defective goods sold for R1 000.

2. The municipality emailed the electricity account amounting to R2 300 on 4 September 2022.

3. Discount received of R2 100 was incorrectly posted to the discount allowed account.

4. Stationery of R1 750 is on hand at year-end.

REQUIRED: You are required to prepare the Statement of Profit or Loss and other comprehensive income for the year ended 31 August 2022.