ABC Ltd issued 20% Debenture Stocks with a nominal value of GH400,000 in January 2020. The stocks are not designated as fair value through profit or loss .The stocks are issued at a discount of 3% and issue costs of GH18,850 were incurred. The stocks will be repayable at a premium of 10% after 4 years. The effective interest rate is thus calculated as 25% per annum. Note: The accountant charged interest expense of GH80,000 [20% of GH400,000] to 2020 income statement and recognized financial liability of GH400,000 as at 31 December 2020. Required: Describe the correct treatments of the above transactions in the 2020 financial statements to the accountant of ABC Ltd and present the relevant corrections/adjustments to be effected in the financial statements.