Question 30 marks Rabie Ltd is a company that distributes a range of thermal and fleece clothing to retailers around the country. The company is listed on the Namibian Stock Exchange. The draft trial balance of Rabie Lid at 31 March 2019 is as follows: Rabie Ltd Trial Balance as at 31 March 2019 Credit 1,000,000.00 700,000.00 6,900,000.00 950,000.00 307,000.00 2.200,000.00 900,000.00 320,000.00 12,100,000.00 Ordinary share capital Retained earnings Equipment carrying amount Accounts receivable Bank Inventory Borrowings Accounts payable Sales Cost of sales Paching expenses Road transport cost Stationery expense Staff canteen expenses Cleaning expenses Depreciation equipment Salaries Bad debts Donations Finance costs Profit on the sale of equipment Dividends 9,600,000.00 300,000.00 240,000.00 436,000.00 213.000.00 105,000.00 75,000.00 700,000.00 10,000.00 50,000.00 54,000.00 400.000.00 60,000.00 22,100,000.00 22,100,000.00 The following information is relevant and should be considered: 1. The ordinary share capital consists of 2 000 000 shares 2. The net realizable value of the inventory at the reporting date was estimated at N$ 2 080 000. 3. Rabie Ltd classifies expenses according to their function. The financial director categorizes the function of the business into three areas, namely; sales, distribution and administration The distribution department specially wraps all items in a protective wrapping before the items are shipped. The goods are transported by an independent road transport entity to the retailers. N$ 8000 of the road transport cost have been paid in advance for the following period. 11. The administrative department issue stationery, provide refreshments and are responsible for the cleaning of the head office Cleaning expenses of NS 5 000 have been invoiced but not paid in respect of March 2019. III. The depreciation expense is allocated NS 50 000 ta distribution and N$ 25 000 to administration. The salaries are allocated NS 250 000 to distribution and NS 450 000 to administration. The bad debts are a distribution expense and the donations are an administration expense. 4. The income tax expense has been correctly calculated at N$ 180 000. 5. The borrowings represent a loan of NS 900 DOC. The loan agreement was signed on 01 October 2018 and is repayable in three equal annual arrear instalments. Interest on the loan is at 12% and payable on the first day of each month. The first installment is due to be paid on 30 September 2019. The existing loan agreement provides Rabie Ltd with the option before the end of the current reporting period. 6. A final dividend of N$ 75 000 was declared on 15 April 2019 in respect of the year ended 31 March 2019. No interim dividends were declared. A final dividend of N$ 60 000 was declared on 14 April 2018 in respect of the year ended 31 March 2018. 7. There are no components of comprehensive income. 8. The financial statements have not yet been authorised for issue. You are required to: 3.1 Prepare the statement of profit or loss and other comprehensive income of Rabie Ltd for the year ended 31 March 2019 in conformity with the IFRS and Companies Act 71 of 2008. [19 marks) 3.2 Prepare the statement of financial position of Rabie Ltd as at 31 March 2019 for the year ended 31 March 2019 in conformity with the IFRS and Companies Act 71 of 2008. [15 marks) 3.3 Prepare the following notes to the financial statements of Rabie Ltd for the year ended 31 March 2019 in conformity with the IFRS and Companies Act 71 of 2008. [6 marks) 3.3.1 Summary of significant accounting policies 3.3.2 Long-term borrowings The end