Question Two

Engo Limited is in the process of finalizing is finamcial statements for the yeur ended June $30,2021.$ The intended date of authorization of finascial statements is September $15,2021.$ The following events have happened sipee June $30\mathrm{.}2021.$

Bivo. Evem:

On July $12,2021$ information was received that a foreige customer had gone imo liquidation in May $2021.$ There are no chances of recovery of this debt now.

On Jaly $15,2021$ the company sold $1,000$ units of Product A foe $512$ per unis. The cost per unit was $$20.$ Hoacver, this Produert had been valued at its NRV of $S15$ percunit on fane $30,2021$ due to damage caused by mishandling on June $25,2021.$

On Augast $15,7$a$2$ the company sold $1\mathrm{.}000$ units of Proctuct B tor only $$12$ per unit due to damage caused by water spoilage on August $05,2021.$ The cost per unit was $ $20.$ However, this Product had been valueslat its NRV of's $15$ per unit on June $30,2021.$

An asser was purchased and installed on June $27,2021.$ However, imveice has been received on $5^{an}$ July $2021.$

On $-7$h Jaly $2021.$ Enjo Limited announced to discontinued produeing its Product C bue to heavy loan whict regresented $27\%$ of motal revenuc

On Jaly, $2021$ the auditors have pointed out that certain sales invoices' errors were committed from recording during March $2021.$

On July $11,2021$ it was discovered that payroll manager had misappropriated $S10,000$ on account of fake employees. The management immediately dismissed him and is now considering taking legal action against him. He had been company's employee since August $2010.$

The furniture worth $$75,000$ was bit damaged due to flood water on August $31,2021.$ The furminure was in good position on June $30,2021.$

Required:

Explain the type of event and briefly state the accounting treatment. $[$Total: $15$ MARKS$\}$