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on the 30 march 2020 nyams ltds financial statements for the year ended 31 december...

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Accounting

On the 30 March 2020 Nyams Ltds financial statements for the year ended 31 December 2019 were authorised for issue. The company sold some products on credit to a customer before 31 December 2019. At 31 December 2019 the companys management had no doubt about the customers ability to pay the outstanding trade receivable of P500,000. However, in March 2020, during the process of finalising the financial statements, Nyams Ltd is informed that the customer is going into liquidation because it has significant debt, has virtually no cash inflows, and its accounting records are poorly maintained. Because of this, the trade receivables are deemed worthless a) What are events after the reporting period? (2) b) Distinguish between adjusting and non-adjusting events and cite two examples of each respectively (8) c) Identify whether the above transaction is an adjustable event on non-adjusting event and justify your answer (2) d) Show the effects of the transactions in the books of accounts (8)

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