Prepare financial statements using NFRS, including adjustments for inventory and depreciation.

Here is the solution to the accounting problem, preparing the required financial statements as per NFRS.

---

Adjustments and Calculations:

1. Cost of Goods Sold (COGS):

   • Net Purchases: Rs. 300,000
   • Less: Ending Inventories (Adj. i): Rs. 80,000
   • COGS = Rs. $300,000 - 80,000 = 220,000$

2. Depreciation on Other Fixed Assets (Adj. iii):

   • Other Fixed Assets: Rs. 300,000
   • Depreciation Rate: 15