Rho Ltd
 Date: 31 March 2024

Details:

• Raw materials inventory (plastic):
  • Cost: £60,000
  • Replacement cost: £58,000
• Finished goods inventory:

Product	Kappa	Sigma
Direct costs	£100,000	£80,000
Proportion of fixed overhead	£25,000	£20,000
Proportion of selling costs	£7,000	£6,000
Net realizable value	£150,000	£110,000

• Office equipment:
   Acquired on 1 April 2019 for £400,000, depreciated over 10 years using the reducing balance method.
• Freehold property:
   Acquired 15 years ago for £2,800,000, land value estimated at £700,000. Buildings are depreciated over 50 years.
• Research and development:
  • Research costs: £80,000
  • Development costs: £100,000, benefiting over 6 years.

Required:
 Explain how these items should be recorded in Rho Ltd's balance sheet and income statement for the year ending 31 March 2024.