Kappa Ltd
 Date: 31 March 2024

Details:

• Raw materials inventory (wood):
  • Cost: £28,000
  • Replacement cost: £30,000
• Finished goods inventory:

Product	Lambda	Mu
Direct costs	£65,000	£55,000
Proportion of fixed overhead	£18,000	£15,000
Proportion of selling costs	£3,500	£3,000
Net realizable value	£100,000	£85,000

• Office machinery:
   Acquired on 1 April 2017 for £250,000, depreciated over 8 years using the reducing balance method.
• Freehold property:
   Acquired 19 years ago for £2,600,000, land value estimated at £650,000. Buildings are depreciated over 60 years.
• Research and development:
  • Research costs: £210,000
  • Development costs: £270,000, benefiting over 5 years.

Required:
 Prepare the necessary adjustments to Kappa Ltd's financial statements for the period ending 31 March 2024.