The trial balance of Mercury Ltd at June 30, 2022 was as follows:

	Dr	Cr
	TZS000	TZS000
7% Preference shares of TZS 1		500,000
Ordinary shares of 50 cents		250,000
share premium account		180,000
Retained earnings, at July 1, 2021		70,000
Inventory, July 1, 2021	450,000
Land at cost	300,000
Buildings at cost	900,000
Accumulated depreciation: Buildings, July 1, 2021		135,000
Plant at cost	1,020,000
Accumulated depreciation: Plant, July 1, 2021		370,000
Trade payables		900,000
Trade receivables	600,000
Allowance for doubtful debts, at July 1, 2021		25,000
Purchases	2,030,000
Administrative expenses	205,000
Revenue		3,000,000
Distribution costs	240,000
Other expenses	50,000
Bank balance		110,000
Ordinary dividend paid	25,000
10% Loan		500,000
	5,930,000	5,930,000

You are provided with the following additional information:

(i) Depreciation on buildings is to be provided at 5% per year on cost and

allocated to administrative expenses.

(ii) Plant is to be depreciated at 20% per year using the reducing balance method

and included in distribution costs.

(iii) Closing inventory is valued at TZS 500,000,000/=.

(iv) The allowance for doubtful debts is to be maintained at 5% of trade accounts

receivable balances.

(v) An accrual for distribution wages of TZS 30,000,000/= is required.

(vi) Interest on the loan has not been paid during the year.

(vii) Provisions are to be made for the following:

The preferred dividend for the year;

An income tax charge of TZS 55,000,000/= for the year.

Required:

Prepare for Mercury Ltd for the year ended June 30, 2022 in accordance with

International Accounting Standard (IAS) 1: Presentation of Financial Statements:

a statement of profit or loss and other comprehensive income; and

a statement of changes in equity; and

a statement of financial position.

Notes to the accounts are NOT required. Show all workings. Ignore the requirement to present the comparative information.