From the information below:

1. List all double entries to record the above adjustments to the financial statements
2. Prepare the statement of comprehensive income for ACRYLO for the year ended 31 March 2020
3. Prepare the statement of changes in equity
4. Prepare the statement of financial position for ACRYLO as at 31 March 2020
5. Prepare Notes and explanations to the statement of comprehensive income and statement of financial position.
6. Reference should be made to applicable IAS’s and IFRS’s, the treatment necessary according to that standard, conditions & disclosure requirements.

The following trial balance related to ACRYLO at 31 March 2020:

€ €

Revenue 1,634,000

Purchases 800,000

Opening Inventory 43,000

Distribution costs 8,000

Administrative expenses 26,000

Investment property (NBV) 240,000

Interest paid on loan 3,000

Dividends paid on equity shares 8,240

Land 500,000

Labour costs 96,000

Property, plant and equipment at cost 31/03/2019 55,000

Accumulated depreciation at 31/03/2019 25,850

Machinery 125,000

Accumulated depreciation at 31/03/2019 12,500

Trade receivables 553,000

Cash and cash equivalents 20,000

Trade payables 418,500

Long term interest bearing borrowings 50,000

Lease rentals 20,000

Issued equity capital 377,390

Facility 50,000

Retained earnings at 31 March 2019 29,000

2,547,240 2,547,240

 

Note 1 Inventory for the year end amounted to 30,000. Due to a lack of space in the warehouse some inventory was stored in a secure yard. Included in the year end figure is inventory valued at cost of 855. However, due to bad weather before Christmas, this inventory of 855 has deteriorated. It could be sold for 1,300 if 270 was spent to make it suitable for sale. Note 2 ACRYLO prepared accounts for the year ended, however, a trade receivable that owed Acrylo 2,500 at 31 March 2020 went into liquidation on 2 April 2020. The directors do not expect to Recover any of this debt. A new factory costing 100,000 was also purchased in April 2020. The directors believe all these amounts are material. Note 3 Under new health and safety legislation, ACRYLO is required to install a new air-conditioning system at a cost of 100,000 to disperse fumes from the machines it uses. The final deadline for installation was 30 November 2019. Non-compliance will result in a fine of 60,000. The air-conditioning system had not been installed by the reporting date. Note 4 ACRYLO's main supplier is laminate Ltd. An agreement between the companies entitles Acrylo to a 5% rebate on purchases over 250,000 from laminate Ltd. the year ended 31 March 2020, Acrylo purchased 360,000 of material from Laminate Ltd.. Acrylo has an excellent relationship with Laminate Ltd over a period of years and the rebate has been paid in full in the past. Note 5 - Long term interest bearing borrowings On 1 April 2019 Delta borrowed 50,000 for five years. The market interest rate on loans at this time was 8%. Note 6 - Tax The final estimated income tax on the profits for the year to 31 March 2020 is 20,000. Note 7 The company has an item of land carried in its books at 500,000. Two years ago a slump in land values led the company to reduce the carrying value from 600,000. This was taken as an expense in profit or loss. There has been a surge in land prices in the current year, however, and the land is now worth 700,000. Note 8 During the accounting year, ACRYLO embarked on a significant expansion programme that involved the employment of an additional 40 staff. The government is providing grants towards the cost of employing additional staff at a rate of 5,000 for each new employee in the year that the employment commences to try to get the economy moving again due to difficulties facing companies due to Covid