The following is the Trial Balance of Metaphor Plc as at 31 June 2021: K 000 K 000 Ordinary shares 160 000 Share premium 40 000 Land and Buildings at cost 600 000 Accumulated Depreciation at 1 July 2020 - Build 50 000 Inventory at 30 June 2021 45 800 Trade Receivables 62 000 Deferred Tax 25 200 Plant and Machinery at cost 150 000 Accumulated Depreciation at 1 June 2020 - Plant 45 500 Development Costs 140 000 Research & Development Costs 30 000 Sales 774 000 Cost of sales 285 400 Bank 29 260 Administrative expenses Trade Payables Income Tax Retained earnings 15 000 65 400 3 460 384 300 Distribution costs Financial Assets Total 30 400 160 000 1 547 860 1 547 860 ADDITIONAL INFORMATION: 1. The financial assets are traded on the Lusaka Stock Exchange and comprise 80 000 shares of K2.00 each. Their value has changed from K 2.65 to K 1.80 per share. 2. The cost of land included in Land and Buildings is K 100 million. The property had a life of 50 years when first constructed and have always been owner-occupied. At 31 June 2021 directors decided to revalue the property to K650 million (including land at 150 million) for the first time.. Page 2 of 3 3. Plant is depreciated at 25% using the reducing balance method. Depreciation has not been charged on all assets. Depreciation of plant and equipment is taken to Cost of sales whereas that on buildings is taken to administration expenses. 4. Estimated income tax on current year's profits is K 9 million. The provision for deferred tax should be K28 million at the end of the year. The balance in the trial balance is an over-provision of tax relating to the preceding year. 5. The total inventory includes an item of inventory that cost K 23 million and can be sold for K 26 million and only after incurring selling costs of K 5 million. 6. The following is the status of projects: Cost Comment on recoverability Project Project Y Total X K 60 million Technical feasibility is doubtful K 80 million Meet all criteria for capitalization K 140 million Research and development expenditure is made up of the following: research K 15 million, expenditure in respect of Project X K 8 million. The balance of the expenditure relate to Project Y. REQUIRED: Prepare the workings for the following: a) Operating expenses schedule: COS, Distribution costs and Administration expenses (4 marks) b) Schedule of Non-current assets, showing the carrying amounts. (4 marks) c) Workings for the Research and Development expenditure, taxation and inventory valuation. (4 marks) d) Statement of Profit or loss and Other Comprehensive Income for the year ended 31 June 2021 using the provided answer formats. e) Statement of Financial Position as at 30 June 2021 (8 marks) (10 marks) (Total: 30 marks)