For a recently established company, Qakengates Ltd, the directors have provided you with a draft copy of the financial statements for its first year-end: 30 June 2020. The financial statements have yet to be authorised for issue by the directors. It is anticipated that the financial statements will be "signed-off" by the 15th August 2020. Oakengates Ltd Statement of Financial Position (extract) 2020 Draft f 150,525 Non-current assets Property, plant and equipment Current assets Inventory Trade receivables Bank Prepayments 25,875 28,750 4,600 2.300 61.525 212.050 Total assets 16,500 750 86,525 103.775 Equity Share capital Share premium Retained earnings Non-current liabilities 10% loan Current liabilities Trade payables Accruals Bank overdraft 63,250 30,650 8,050 6,325 45,025 212.050 Total equity and liabilities Dakengates Ltd Statement of Profit or Loss Revenue Cost of sales Gross profit Administration expenses Distribution costs Profit before interest and tax Finance charges Profit before tax Taxation Profit for the year 2020 Draft 345,000 293,422 51,578 4.686 25,042 21,850 7.475 14,375 3,625 10.750 1. The directors have provided you with some additional information that may be relevant to the preparation of the final version Inventory of 650 held at 30 June 2020 was sold to a customer on the 10 July 2020 for 500 2. On the weekend of 4" July 2020, a flood occurred in part of the upstairs kitchen and destroyed some of the inventory in the research department below. The items of inventory had a cost value of 625. 3. A property that the business owned was sold shortly after the year end for 190,000, realising a profit of 45,000. 4. A customer of Oakengates Ltd was been declared bankrupt on the 14th July 2020 owing 1,225. It is unlikely that any of the monies owing will be recovered. Any resulting expense should be charged to administrative expenses. 5. The company directors wish to propose a final dividend of 120 per share. The announcement was made on the 4th August 2020. 6. When a verification of the items included in property, plant and equipment was made at the year end, it was discovered that two valuable laptops, used in the warehouse, had been stolen. The carrying value of these assets were 1,968. Any resulting expense should be charged to distribution costs. i. Required: a) For each of the additional information: State the accounting treatment in line with IAS 10 Provide the double entry that would be necessary to record these transactions (20 marks) ii. b) Prepare the updated version of the financial statements for the year to 30ih June 2020, including your adjustments prepared above. You should use a format suitable for publication, including relevant disclosure notes required by IAS 10, Events after the reporting period. (20 marks) (Total Part B: 40 marks) (Assessment Total: 100 marks)