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The following information relates to Paradzai Industries DR CR $ $ Ordinary share capital 2 0 0 0 0 0 Retained earnings 1 January 2

The following information relates to Paradzai Industries
DR CR
$ $
Ordinary share capital 200000
Retained earnings 1 January 2014686000
Sales 860000
Inventories 1 January 201420000
Purchases 150000
Advertising 30000
Administration salaries 28000
Manufacturing wages 120000
Interest paid 28000
Interest received 24000
Audit fees 14000
Losses on credit sales 20000
Provisional tax payments 74000
Interim dividend paid 144000
Dividends received 60000
Premises at cost 900000
Accumulated depreciation on premises: 80000
Plant and equipment at cost 560000
Accumulated depreciation on plant
and equipment 320000
Financial assets available for sale 200000
Trade receivables 46000
Cash and cash equivalents 314000
Trade payables 14000
Deferred tax 124000
10% Debentures 280000
Totals 26480002648000
Additional information
1- The closing stocks/inventory on 31 December 2014 was $26000-00.
2- Premises $
Land at cost 500000
Factory building at cost 400000
900000
Land was revalued at $520000-00 on 31 December 2014.
Factory buildings have a useful life of 50 years and no residual value and
depreciation is provided on a straight line basis over 50 years.
3- Plant and equipment
Depreciation is provided at 10% per annum on a straight line basis.
4- Financial assets available for sale
Financial assets available for sale are accounted for at fair value. Any gain
arising during the year is accounted for under other comprehensive income and
deferred tax is provided at 30% per annum.
The fair value of the financial assets on 31 December 2014 was $210000-00.
5- The taxable temporary differences at 31 December 2014 was calculated at $500
000-00 at 30%.
6- Income tax expenses $
Income for the year 860000
Allowable deductions -400000
Taxable income for the year 460000
Current tax for the year 138000
Deferred tax [150000-3000-6000-124000]( see note 7)17000
Taxation for the year 155000
7- Deferred taxation for the current year
Deferred tax liability 31 Dec 2014[500000 x30%]150000
Attributable to other components of comprehensive income
Financial assets revaluation [10000x30%]-3000
Land revaluation [20000x30%]-6000
Deferred tax at the beginning of the year -124000
Deferred tax for the current year 17000
8- Declared dividends
On 31 December 2014 a final dividend of $176000-00 was declared
REQUIRED
Prepare the statement of profit and loss and other comprehensive income and the statement of
financial position as 31 December 2014

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