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 $2014[500000$ x$30\%]150000$

Attributable to other components of comprehensive income

Financial assets revaluation $[10000$x$30\%]-3000$

Land revaluation $[20000$x$30\%]-6000$

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 $2014$