QUESTION 3 Dangote Foods Nigeria Limited is a private limited company. The company's accountant, Mr. Emeka Obi, has prepared the following trial balance as at 31 March 2024: Dr (N'000) Cr (N'000) Ordinary share capital (N0.50 each) 5,000 Share premium 2,000 Retained earnings (1 April 2023) 4,500 8% Loan notes (repayable 2026) 6,000 Freehold land and buildings – cost 18,000 Freehold land and buildings – acc. depn. 3,600 Plant and equipment – cost 12,500 Plant and equipment – acc. depn. 5,200 Inventory (31 March 2024) 3,200 Trade receivables 4,800 Allowance for receivables 240 Cash at bank 1,450 Trade payables 2,900 Revenue 42,000 Cost of sales 28,000 Distribution costs 3,600 Administrative expenses 2,800 Loan note interest paid 480 Corporate tax (overprovision prior year) 120 Interim ordinary dividend paid 750 Totals 75,580 71,560 Note: The trial balance does not balance. The difference represents a suspense account balance. Additional information: (i) Depreciation has not yet been charged for the year. Freehold buildings (land element N4,000,000) are depreciated at 2% per annum on cost. Plant and equipment is depreciated at 20% per annum on the reducing balance method. (ii) The allowance for receivables is to be adjusted to 6% of trade receivables. (iii) The corporate income tax charge for the year ended 31 March 2024 is estimated at N1,260,000. (iv) The loan note interest accrual for the second half-year (N240,000) has not yet been recorded. (v) During the year, plant costing N1,500,000 (accumulated depreciation N900,000) was sold for N700,000. The proceeds were correctly credited to the plant and equipment cost account but no other entries were made. (vi) The suspense account should be investigated and cleared using the information in notes (i) to (v) above. Required: (a) Identify and explain the suspense account balance and prepare journal entries to clear all errors and omissions (notes i to v). (8 marks) (b) Prepare the Statement of Profit or Loss and Other Comprehensive Income for Dangote Foods Nigeria Limited for the year ended 31 March 2024. (10 marks) (c) Prepare the equity section of the Statement of Financial Position as at 31 March 2024. (7 marks) Total: 25 marks