Question 5 (30 marks) Bob Limited (\"BOL\") is a merchandising company which has the following unadjusted trial balance as at 31 March 2022. DR CR $'000 $'000 Sales - 155,400 Purchases 104,500 - Distribution costs 10,560 - Administrative expenses 23,120 - Other expenses 3,400 - 8% bank loan interest paid 1,120 - Land and buildings (including land $60 million) 80,800 - Plant and equipment 15,220 - Accumulated depreciation as at 31 March 2021 Buildings - 7,560 Plant and equipment - 3,170 Non-current asset held for sale 10,000 Inventories as at 31 March 2021 6,352 - Trade receivables, net 14,830 - Bank and cash 11,464 - Ordinary shares - 33,930 8% redeemable preference shares - 2,600 Revaluation su_rplus - 4,635 Retained earnings, 3] March 2021 - 38,637 Ordinary dividends paid 2,500 - Preference dividends paid 208 - 8% bank loan - 28,000 Trade payables - 10,142 284,074 284,074 Notes: 1. Property, plant and equipment are depreciated as follows: 0 Buildings 5% per annum on a straight-line basis 0 Plant and equipment 30% per annum on a diminishing balance basis Depreciation of buildings is classied as an administrative expense while depreciation of plant and equipment is treated as a cost of sales. 2. The company adopts revaluation model for land and the land was revalued to $70 million on 31 March 2022. Land is not depreciable. 3. The 8% bank loan is a 10-year loan due for repayment by 31 March 2027. Interest on this loan needs to be accrued for the six months to 31 March 2022. 4. On 10 April 2022, the credit department discovered that a major customer owing $2 million has gone into liquidation. 5. At the current year end, the company completed its physical count of inventories. The total cost of the closing inventories was valued at $6 million. 6. The preference shares will be redeemed for $2.6 million in 2024. Preference dividends are paid on 31 March every year. 7. Income tax for the year ended 31 March 2022 is estimated at $0.5 million. Ignore deferred tax and tax effect of other adjustments. Required: (a) Prepare the necessary adjusting entry for Note 4 above, regarding the liquidation of a major customer. Write the exact amount of the adjustment. [3 marks] (b) In accordance with IAS 1 Presentation of Financial Statements, prepare the 1. statement of prot or loss and other comprehensive income for the year ended 31 March 2022 and; 2. statement of nancial position as at 31 March 2022 for Bob Limited. [27 marks] Show all workings clearly