Question 1 (30 marks) The Trial Balance for Caser Enterprise ("Caser") as at 31 December 2020 is as follows: N$000 N$000 Revenue 17 234 Purchases 11 360 Inventory 1 January 2020 1 130 Salaries and wages 2 110 Expenses (including loan interest) 955 Accrued tax at 1 January 2020 120 Land at valuation 2 350 Property at valuation 6 220 Property accumulated depreciation as at 1 January 2020 2 670 Plant and equipment at cost 980 Plant and equipment accumulated depreciation as at 1 January 2020 590 Furniture and fittings at cost 540 Furniture and fittings accumulated depreciation as at 1 January 2020 230 Trade receivable 1 540 Trade payables 1 980 Bank 560 Ordinary issued N$1 shares 4 000 Dividends paid 750 Revaluation reserve as at 1 January 2020 200 Retained earnings as at 1 January 2020 29 6% loan redeemable 2030 1 500 28 524 28 524 (Note that figures in the above table are in 000s - thousands) Additional information 1. Inventory as at 31 December 2020 was valued at N$560 000. 2. Tax charge for the year ended 31 December 2020 is estimated at N$1 110 000. 3. Adjustments for accruals and prepayments of expenses are required for the year ended 31 December 2020 as follows: Accruals Prepayments Expenses N$60 000 N$76 000 4. During the year an item of plant costing N$250 000 and with accumulated depreciation of N$90 000 was sold for N$130 000. No accounting entries have been made in respect of the sale. 5. On 1 November 2020 Caser issued 1 million ordinary shares for N$0.45. These shares were paid in full but the entries were not recorded by mistake. 6. Depreciation, charged for a full year in the year of purchase but none in the year of sale, is to be calculated for the year ended 31 December 2020 as follows: Property 2% per annum on valuation; Plant and equipment 12% per annum straight line on cost; Page 1 of 4