The accounts in the ledger of Zetland Ltd as at 30 June 2017 had balances.

The Share Capital account represents 30000000 shares fully paid at $1 and 50 000 000 shares issued at $1 but called to 75c per share. A call of 25c per share had been made on these 50000000 shares during the year, but 2 000 000 had failed to pay the call by 30 June 2017. An interim dividend

of $1 500 000 has been paid during the year out of retained earnings. 

Inventory on hand at 30 June 2017 was $16 000 000.

The following adjustments have to be made.

1.  Provide for 10% p.a. depreciation on cost of fixtures and fittings and 5% p.a. on buildings for the whole year.

2.  Unrecorded and unpaid expenses: travellers’ salaries $100 000.

3.  General expenses prepaid, $15 000.

4.  Record income tax expense and current tax liability of $900000.

5.  Declare a final dividend, $1 500 000. No ratification of this dividend is needed.

6.  Share issue costs to be written off against share capital.

7.  An amount of $1 000 000 is to be transferred to a general reserve from retained earnings.

	Zetland LTD
		Debit ($000)				Credit ($000)
	Share Capital Second Call Retained Earnings Mortgage Payable on Land and Buildings Land Buildings Fixtures and Fittings Accumulated Depreciation – Buildings – Fixtures and Fittings Investments Share Issue Costs Accounts Receivable Control Inventory on hand (1 July 2016) Bank Overdraft Accounts Payable Control Sales Revenue Interest from Investments Purchases Freight Inwards Commission Expense Delivery Expense Salaries: Administrative            Travellers Directors’ Fees General Expenses Interest on Mortgage Expense		500 10200 40000  2500 40000 500 5495 15000 11850 150 100 200 3500 1190 200 2965      1000				67500 4600 20000 4000 500 11000 2000 24000 1750
			$135350				$135350

Required

Prepare an income statement for the year ended 30 June 2017 and a balance sheet) as at 30 June 2017.