The following Trail Balance is given for the Peter Ltd as of 31^st December 2017.

The following adjustments need to be considered as well.

1. Closing inventory is valued at $276,000.
2. Salaries amounting to $10,200 for the last month have not been paid.
3. A final dividend of 20% is to be paid on all ordinary shares.
4. The company has decided to revalue the land to $300,000 from its existing value of $230,000. This has yet to be shown in the accounts.
5. Building is to be depreciated @ 10% p.a. and Plant & Machinery @ 25% R.B. p.a.

Requirement: Prepare the financial statements of Peter Ltd as at 31 December 2017 including the statement of changes in equity.

Details Dr ($ 000's) Cr($ 000's) 350 100 50c ordinary shares (fully paid) 7% $1 preference shares (fully paid) 10% loan stock (secured) Retained earnings 1.1.X7 200 242 General reserve 1.1.87 171 135 430 830 Revaluation Surplus Land and buildings 1.1.X7(cost) Plant and machinery 1.1.X7 (cost) Accumulated depreciation Buildings 1.1.X7 Plant and machinery 1.1.X7 20 222 190 Inventory 1.1.X7 Sales 3,395 Purchases 2,452 Preference dividend 7 Ordinary dividend interim) 8 Loan interest 10 254 Wages and salaries Light and heat Sundry expenses 31 113 Trade accounts receivable 179 195 Trade accounts payable Cash 526 5,030 5,030