QUESTION 1+ Mega Pte Ltd ("Mega") is a wholesaler of fast-moving consumer goods. The following is its unadjusted trial balance for the financial year ended 31 December 2021 (FY 2021): $ H H Sales Purchases Carriage inwards Carriage outwards Rent 4 (11) Wages and salaries Directors' remuneration Administrative costs Selling costs Interest paid Dividend paid Cash on hand Bank balance Fixed deposit Inventory as at 1 January 2021 Trade receivables Freehold land (cost) Plant and machinery (cost) Plant and machinery (accumulated depreciation) Motor vehicles (cost) Motor vehicles (accumulated depreciation) Share capital (200,000 shares) Retined earnings as at 1 January 2021 Trade payables Current tax Bank overdraft 4% Convertible loan Deferred tax 675,000+ 31,000+ 66,000 260,000+ 380,000+ 84,000+ 25,000+ 49,000+ 42,000+ 88,000+ 9,000+ 158,000+ 112,000+ 147,000+ 362,000+ 388,000 460,000+ 230,000+ 3,566,000 2,131,000+ 210,000+ 130,000+ 300,000+ 172,000+ 189,000+ 8,000+ 15,000+ L 400,000+ 11,000+ 3,566,000+ The following notes relate to FY 2021, for which no adjustment has been made, if required. (1) Inventory as at 31 December 2021 based on the inventory records was $203,000. After a physical stocktake was done, inventory with a carrying amount of $14,000 was discovered to be damaged and its net realisable value was estimated to be only $2,000. While reviewing the records in May 2021, Mega discovered that the inventory balance of $147,000 at 31 December 2020 was overstated by $38,000. This material error does not affect the closing balance at 31 December 2021.