The following is the Trial Balance of Jim Kelly as at 30 September 2020: K 000 K 000 73 500 3750 140 000 100 000 6 000 337 730 29 750 573000 44 820 5% Loan notes 5% Loan interest paid Financial Assets 6% Convertible preference shares 6% preference dividend paid Cost of sales Bank Revenue Administrative expenses Trade Payables Ordinary shares Share premium Income Tax Inventory at 30 September 2020 Plant and Machinery at cost Accumulated Depreciation at 1 October 2019 - Plant Trade Receivables Revaluation Reserve Retained earnings Land and Buildings at valuation Distribution costs Total 63 000 100 000 30 000 2 300 64 000 265 470 63 400 48 680 144 000 285 000 440 000 54 000 1 433 200 1 433 200 1. Estimated income tax on current year's profits is 28 000. The balance in the trial balance is an overprovision of tax relating to the preceding year. 2. An item of inventory that cost 26 million and included in the total figure of inventory in the trial balance can be sold for 32 million and only after repairs are done do it at a cost of 15 million 3 The financial assets are held for trading and represent investments in equity shares of listed companies. At 31 March 2020 their fair value was estimated to be 155 million 4. Land and Buildings were revalued to 440 million (land 120 million) on 31 March 2019 from a carrying amount of 296 million. The property had 32 years remaining then. Directors are of the view that the recoverable amount of the property should be 400 million (including land at 100 million). 5. The 5% loan note have a nominal value of 75 million and were issued in the year at a discount of 2%. Issue costs incurred amounted to 820 000 and are included in administration expenses. The loan notes will be repaid at a premium in 2029. The effective rate of interest is 9%. 6. The company depreciates plant and equipment at the rate of 25% using the reducing balance method. Depreciation has not been charged on all assets and is taken to Cost of sales. 7. The 6% convertible preference shares were issued on 1 April 2019. Their par value is. 100 million and are redeemable on 31 March 2023. They were issued together with an option under which 100 of the share value would be converted to 150 ordinary shares. The equivalent bond without the conversion option would have carried an interest rate of 9%. The coupon interest was paid on 31 March 2019. Note: You are required to find Present Value Tables from books you have. REQUIRED: Prepare the statement of Profit or loss and Other comprehensive Income for the year ended 30 September 2020 (25 marks)