21. Closing stock, has been over valued by $4000. This will A) Overstate net profit by GH 4000 B) Unerstate net profit by GHe4000 4000 . C) Unerstate cost of sales by GHe4000 22. Goods withdrawn account. This is an error of aprietor was debited to drawings account and credited to sales A) Principle B) Original entry C) Complete reversal D) Compensation QUESTION 1 SECTION B Madam Gbormitta owns a provision shop at Obuasi. On 31st December, 2020 the following trial balance was extracted from her books: CashexpensesBankPersonaldrawings i) Inventory at 31st December, 2020 was valued atlable: iii) reducing balance methe of 40% on cost for GHe176,000. 3.108 .800 An amount of Gethod basis. iv) December, 2020 GH 28,000 is accroct Allowance for doubtful debis is result of improvement in debt is to be adjusted to GHe 10,000 at 31 December, 2020 as a v) Rent and rates prepaid amountecovery efforts. vi) The loan was contracted on 1st to GH/25,600. on loan. Required: a) Prepare the Statement of profit or loss for the year ended 31st December, 2020. marks) b) Prepare the Statement of financial position as at 31st December, 2020 (8 marks) (Total: 16 marks) QUESTION 2 a) State and explain four reconciliation statement. marks) (4) items that cause discrepancies in the preparation of bank (8 b) Kudos has been in business for one year, the following is his cash book and the bank he received from Ecobick for the month of August, 2021