Additional information: The directors have discovered the following: 1. Inventory at 30 September 2018 was valued at Rs 10,000 based on its original cost. However, Rs5,000 of this inventory has been damaged and the directors have agreed that they would normally sell for Rs8,000. The items could be repaired at a cost of Rs2,000 and then sold for Rs5,500. 2. Depreciation is to be provided as follows: Shop fittings depreciation 10% per annum on cost; Motor vehicles depreciation 25% per annum using reducing balance method Shop fittings depreciation is split one third distribution costs and two third administrative expenses and motor vehicles depreciation is an administrative cost. 3. As at 30 September 2018, there was an additional accrual for general distribution costs of Rs1,800. Additionally payment for administrative expenses of Rs2,600 has been made on 15 January 2018 covering the period from 01 April 2018 to 31 March 2019. 4. A provision of 5% for doubtful debts is to be created on the trade receivable balance. This provision is to be treated as an administrative expense. 5. During January 2018, a surveyor revalued property to Rs 800,000 and no entries have yet been made in the accounts to reflect this revaluation. 6. Salaries are split equally between administrative expenses and distribution costs. 7. A transfer of Rs2,000 to general reserve is to be made and an ordinary dividend of Rs 15,000 for the year ended 30 September 2018 has been proposed on 25 October 2018. 8. At 30 September 2018, the company made a bonus issue of two for every five ordinary shares held. The share premium account was used to finance that issue. 9. Corporation tax liability is estimated at Rs 50,000.