Berry Limited $($Ltd$)$ is currently in the process of finalising their financial statements for

the year ended $31$ December $2012.$ The following events occurred since $1$ January

$2013$ and $28$ February $2013($today$$s date$)$:

A$.$ Current tax expense of R$20000$ had been incorrectly debited to revenue in $2012.$

B$.$ A debtor that owed Berry Ltd R$100000$ at year$-$end was in financial difficulties at

year end and, as a result, the company processed a doubtful debt adjustment of

R$30000$ against this account. In January $2013,$ the debtor$$s lawyers announced

that it would be paying $40\%$ of all debts.

C$.$ A debtor that owed Berry Ltd R$150000$ at year$-$end had their factory destroyed in

a labour strike in December $2012.$ As a result, this debtor has filed for insolvency

and will probably pay $60\%$ of the balance owing. Berry Ltd was unaware of this

debtor$$s financial difficulties at $31$ December $2012.$

D$.$ Inventory carried at R$100000$ at year$-$end was sold for R$80000$ in January $2013.$

It had been damaged in a flood during July $2010.$

E$.$ A court case was in progress at $31$ December $2012,$ in which Berry Ltd was the

defendant. No provision was raised at year$-$end because Berry Ltd disputed the

claims made. The court has since ruled against Berry Ltd but has not yet

indicated the amount to be paid to the claimant in damages. The company$$s

lawyers have estimated that an amount of R$300000$ will be payable.

F$.$ Berry Ltd declared a dividend on $05$ February $2013$ of R$25000.$

REQUIRED:

Explain whether the above events should be adjusted for or not when finalising the

financial statements for the year ended $31$ December $2012.$

If the event is an adjusting event, provide the relevant journal entries.