QUESTION 3 Fatima Agro-Allied Services Limited is a medium-sized agribusiness company operating in Kaduna State, Nigeria. The company's accountant is preparing the financial statements for the year ended 31 March 2024. The following information is available: (i) The company subscribes to an industry trade journal. The annual subscription of N180,000 was paid on 1 October 2023 covering the period 1 October 2023 to 30 September 2024. (ii) The company provides consultancy services to farmers. During the year, it received advance payments from clients totalling N960,000, of which N360,000 relates to services to be rendered after 31 March 2024. (iii) The company's telephone bills are paid two months in arrears. The bills paid during the year ended 31 March 2024 totalled N540,000, covering the period 1 January 2023 to 31 January 2024. No bill has been received for February and March 2024. Based on the most recent bill, telephone costs average N45,000 per month. (iv) The company's warehouse lease agreement requires it to restore the warehouse to its original condition at the end of the 5-year lease commencing 1 April 2021. The estimated cost of restoration at the end of the lease is N6,000,000. The company has not made any provision for this obligation. The directors consider the provision should be recognised evenly over the lease term. Required: (a) Distinguish between an accrual and a prepayment, and explain the accounting principle that makes their recognition necessary. (5 marks) (b) Prepare the relevant ledger accounts for items (i), (ii) and (iii) above for the year ended 31 March 2024, clearly showing the closing balances to be carried forward. (12 marks) (c) Advise the directors of Fatima Agro-Allied Services Limited on the appropriate accounting treatment for the warehouse restoration obligation in item (iv), with reference to the relevant accounting standard. Calculate the amount of provision to be recognised in the financial statements for the year ended 31 March 2024. (8 marks) (Total: 25 marks)