You have been provided with the following information for Neo Ltd for the financial year ended $30$ June $2017$:

$$ Additional notes

$$ Trial balance

Additional notes:

$1.$ The trial balance, including the profit for the year, was prepared before any of the following adjustments $($notes $2$ to $5)$ were made.

$2.$ Valuation of non$-$current assets:

$$ Land is classified as owner$-$occupied property and is carried under the revaluation model. It is not depreciated.

$$ Land is included in the trial balance, as part of land and buildings, at a value of R$62000000.$ Land must still be revalued to R$70000000$ for the financial statements for the year ended $30$ June $2017.$

$$ Depreciation has to be provided as follows:

$-$ Buildings at $2\%$ per annum on the straight$-$line basis.

$-$ Plant and machinery at $10\%$ on the reducing balance basis.

$$ Investment property is measured using the fair value model. There is no change in the fair value at year$-$end.

$3.$ The loan account bears interest at $15\%$ p$.$a$.$ The capital will be repaid in $2020.$ All the interest for the year has been paid and recorded.

$4.$ Bad debts of R$63000$ still have to be written off. The management of Neo Ltd has decided to adjust the allowance for doubtful debts to $2\%$ of outstanding debtors.

$5.$ A dividend of R$870000$ was paid in June $2017,$ but no entries were made.

Neo Ltd

Trial balance for the year ended $30$ June $2017$

Account name Debit Credit

R$000$ R$000$

Share capital $20000$

Share premium $9000$

Revaluation reserve $01/07/20161800$

Retained earnings $01/07/201624947$

Plant and machinery $21000$

Plant and machinery $$ Accumulated depreciation $8900$

Land and buildings $85000$

Land and buildings $$ Accumulated depreciation $5060$

Investment property $3450$

Loan account $18900$

Debtors control $9763$

Inventories $30/06/20177765$

Allowance for doubtful debts $144$

Bank $3349$

Creditors control $6628$

Tax payable $88$

Deferred tax liability $12000$

Total comprehensive income for the year $22860$

Total $130327130327$

a$)$ Prepare the Statement of financial position for Neo Ltd for the financial year ended $30$ June $2017.$

$(65)$

b$)$ Prepare the Statement of changes in equity for Neo Ltd for the financial year ended $30$ June $2017.$Use thse Possible line item descriptions in the relevent spaces

Accruals; Administrative expenses; Interest; Allowance for doubtful debts; Plant and machinery; Bad debts; Bank; Cost of sales; Office equipment; Creditors control; Depreciation; Depreciation for the year; Debtors control; Dividends paid; Dividends received; Equipment and machinery; Equipment and machinery $$ Accumulated depreciation; Tax payable; Finance costs; Inventories; Investments; Land and buildings; Loan account; Plant and machinery $$ Accumulated depreciation; Other comprehensive income; Other income; Purchases; Retained earnings; Revaluation reserve; Sales; Selling and distribution costs; Share capital; Profit for the year $($after taxation$)$; Share premium; Gain from changes in fair value; Taxation; Taxation liability; Property, plant and equipment; Investment property; Trade and other receivables; Cash and cash equivalents; Retained earnings; Interest$-$bearing borrowings; Trade and other payables; Deferred tax liability; Land and building $$ Accumulated depreciation$/$ Also show workings