Ms$.$ Kathy King On behalf of the Directors of High Limited $8$ Goulbourne St$,$ Sydney NSW $2000$

I am writing to seek your advice regarding numerous accounting issues for the year ended $30$ June $2024.$ Our senior accountant is on indefinite sick leave and we require your services. I have included following items that we require for your completion. All work must comply with the Australian Accounting Standards and please also provide a detailed explanation of the rationale behind the appropriate accounting treatments.

The items of concern are as follows:

Item $1$

The following information is financial statements of High Ltd for the year ended $30$ June $2024.$

Income statement of High Ltd for the year ended $30$ June $2024$

Sales

Interest revenue

Dividend revenue

Total Income

Less Expenses

Cost of Sales

Other expenses $($paid$)$ Bad debts expenses Wages expense

Interest expense Depreciation $-$ plant

Loss of sale of plant

Profit before income tax Less income tax expenses Profit for the year

$$\text{'}000$ $$\text{'}000927115943$

$320$

$15$

$7$

$266$

$14$

$95$

$10(727)216(74)142$

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Statement of financial position of High Ltd as at $30$ June $2023$ and $2024$

$20232024$

Current assets

Deposits at call

Trade receivable

Less allowance for bad debts

Interest receivable

Inventories $285335$

$$\text{'}000$ $$\text{'}000131277221253$

$(11)(8)2015$

Non$-$current assets

Loan receivable

Plant at cost

Less accumulated depreciation

Current liabilities

Trade payables

Accruals $2030$

$404017602115(230)(295)$

$90100$

Tax payables Bank overdraft

Non$-$current liabilities

$45748065$

Convertible notes $300$

Shareholders$$ equity

Issued capital Retained earnings

Other information

$15562256125207$

$1)$ For the purposes of the statement of cash flows, High Ltd defines cash and cash equivalents as including cash on hand and at bank and short$-$term deposits at call, net of outstanding bank overdrafts.

$2)$ During the reporting period, High Ltd made two issues of ordinary shares as follows:

$$ the convertible notes outstanding at $30$ June $2024$ were converted to $150000$ ordinary

shares issued at a conversion price of $$2\mathrm{.}00$ per share; and

$200000$ shares were issued at $$2\mathrm{.}00$ per share for cash.

$3)$ During the year ended $30$ June $2024,$ plant and equipment costing $$60000$ and having a book value of $$30000$ was sold and made a loss of $$10000.$

$4)$ The opening and closing balances of the $$accruals$$ accounts $($under current liabilities$)$ were attributable to wages and salaries and interest payable as follows: