Chief Accountant of Sunshine company needs help with preparation of company$$s financial statements

for the year ended $30$ June $2016.$ The company$$s trial balance as at $30$ June $2016$ is provided below:

Debit Credit

$$000$ $$000$

Dividends paid $6,000$

Share capital $100,000$

Share premium $50,000$

Revaluation reserve at $1$ July $201520,000$

Trade and other receivables $40,560$

Trade and other payables $17,450$

$5\%$ bank loan repayable $202040,000$

Cash and cash equivalents $4,426$

Retained earnings at $1$ July $201525,840$

Sales $201,852$

Land & buildings $$ value$/$cost $240,000$

accumulated depreciation at $1$ July $201545,000$

Plant and equipment $$ cost $64,000$

accumulated depreciation at $1$ July $201536,000$

Purchases $134,462$

Distribution costs $16,652$

Administrative expenses $15,482$

Inventories at $1$ July $201514,560$

The following information is provided for preparation of financial statements:

$($i$)$ The inventories at the close of business on $30$ June $2016$ cost $$18,840,000.$

$($ii$)$ It has been decided to write off a debt of $$1,080,000$ which will be charged to administrative expenses.

$($iii$)$ Included within distribution costs is $$4,240,000$ relating to an advertising campaign that will run from $1$

January $2016$ to $31$ December $2016.$

$($iv$)$ The loan interest has not yet been accounted for.

$($v$)$ Depreciation is to be provided for the year to $30$ June $2016$ as follows:

Buildings $4\%$ per annum Straight line basis

This should all be charged to administrative expenses

Plant and equipment $20\%$ per annum Reducing balance basis

This is to be apportioned as follows:

$\%$

Cost of sales $80$

Distribution costs $10$

Administrative expenses $10$

Land, which is non$-$depreciable, is included in the trial balance at a value of $$80,000,000.$ At $30$ June

$2016,$ a surveyor valued it at $$108,000,000.$ This revaluation is to be included in the financial statements

for the year ended $30$ June $2016.$

$($vi$)$ The tax charge for the year has been calculated as $$5,400,000.$

$$ 

 

Required:

Prepare the statement of profit or loss and other comprehensive income of Sunshine for the year

ended $30$ June $2016$ and the statement of financial position as at $30$ June $2016.$