Style Ltd is a company with an authorised share capital of 2 million ordinary shares. The company commenced business on 1 July 2008 primarily retailing fabric.

The following list of balances as at 30 June 2020 was extracted from the pre-adjustment trial balance of Style Ltd.

List of selected accounts	Additional information	Balance R
Ordinary share capital ( issued at R2 each)		900 000
Retained earnings		675 340
Loan from Generous Bank	2	147 875
Investment in Mine Ltd- shares of R2 each	3	200 000
Inventory trade goods	1	370 190
Trade debtors	4	99 460
Allowance for credit losses	5	1 200
Sales		2 174 485
Cost of Sales		1 018 120
Interest received (on favourable bank balances)		13 100
Commission received	9	69 300
Advertising	7	20 000
Credit losses	4	2 650
Electricity and water	8	83 570
Consumable expenses	1	17 190
SARS-provisional income tax paid	10	103 500
Suspense account-Safe Insurance Company	6	12 000
Other operating expenses		664 860

Additional Information:

Physical stock was taken at financial year end and valued as follows:

Trading inventory R366 690

Consumables inventoryR2 040

Generous Bank provided the following details as at 30 June 2020 in respect of the loan they provided to Style Ltd:

Balance outstanding at 1 July 2019 R227 500

Balance outstanding at 30 June 2020 R183 750 Total payments for the year inclusive of interest R 79 625

Interest on the loan is capitalised. Style Ltd has not yet recorded the interest for the current financial year.

1. On 25 June 2020, directors of Mine Ltd declared a dividend of 15 cents per share payable to all shareholders registered on 30 June 2020. Style Ltd bought its shares in Mine Ltd during the last financial year that ended 30 June 2019.

2. Y Wayne, a debtor, owed the company a total amount of R3 000. The debtor is now deceased and 60 cents in the Rand has been received from his estate in full settlement of his account. The unpaid balance of his account must be written-off as a credit loss.

3. The allowance for credit losses must be increased by R800.

4. There was a fire at the warehouse on 13 February 2020 which destroyed trading stock to the value of R127 000. The insurance company paid out an amount of R115 000. The difference has been posted to a Suspense account-First Insurance Company.

5. The advertising costs of R20 000 are for a single advertising campaign that was launched on 1 December 2019 for a period of 10 months ending on 30 September 2020

6. The June 2020 electricity and water account of R6 400 is not included in the above records.

7. The commission received includes an amount of R6 300 for which service will be provided during July 2020.

8. Income tax for the year amounted to R122 238

Required:

Prepare the statement of profit or loss and other comprehensive income for Style Ltd for

the year ended 30 June 2020.for Style Ltd for the year ended 30 June 2020.

NB:- Formats and general presentation should comply with appropriate International Financial Reporting Standards (IFRS).

• All calculations must be shown.
• You are required to show combination of figures in brackets on the face of the statement of profit or loss and other comprehensive income.