All Shall Come to Pass Company was incorporated with an authorized capital of 40,000,000

equity shares of no par value.

The Trial Balance extracted from the ledgers of the company as at 31st December, 2019 is

as shown below:

GH000 GH000 Sales 90,675

Purchase of Raw materials 55,800 Selling and Distribution expenses 2,080 Wages and salaries of production staff 4,000 Salaries of Administrative staff 2,800

Inventory on hand 1/1/2019: Raw materials 1,000 Work-in-Progress 1,000 Finished Goods. 3,000 Investment Property. 8,000 Buildings 10,000 2,000 Plant and Machinery. 35,800. 10,000 Fixtures and Equipment (office related) 8,000 3,000 Motor vehicles 2,600 1,200 Investment in shares. 5,000 12% Loan note (2019-2021). 6,000

Trade Payables. 1,360 Interim Equity dividends paid. 900 Bank overdrafts. 1,390 Overdraft interest and Bank charges. 800 Corporate tax. 1,200 Cash in hand. 1,100 Stated Capital-Equity shares (issued at GH1). 30,000 Capital Surplus 1/1/2019. 3,000 Income surplus 1/1/2019. 3,040 Investment income .... 1,500 Rental Income. 50 Administrative expenses 2,040 Production overheads excluding depreciation. 2,000 Loan interest paid. 600 VAT service. 3,535 Trade Receivables. 2,960 153,615 153,615

The following additional information is available: i. VAT has been incorrectly recorded in the books. The sales and the purchases figure in the Trial Balance include Output and Input Vat respectively. Vat Rate is 12.5%. The figure of GH3,535,000 in the trial balance represents net VAT paid to VAT service for January-November transactions. VAT returns for December 2019 transactions were made on 25th January 2020.

ii. Inventory on hand on 31st December 2019 were as follows:

Cost NRV

GH000 GH000

Raw Materials 1, 240 1,200

WIP. 600 N/A

Finished goods 2,000 2,600

iii. Provision is to be made for:

- Directors Emoluments of GH20,000

- Auditors Remuneration of GH25,000

- Royalty of 1% of sales

iv. During the year the company paid the tax liability outstanding at 1/12/2018 of

GH800,000. Tax credit certificates amounting to GH160,000 were obtained by the

company in the year as result of withholding tax deducted at source by customers. An

amount of GH140,000 was also paid on account of 2019 provisional tax assessment.

Corporate tax rate applicable to All Shall Come to Pass Company Ltd is 30% of Net

profit.

v. The Investment Property had a fair value of GH8,400,000 as at 31st December 2019

according to a chartered surveyor.

vi. The policy of the company is to depreciate Property, Plant and Equipment as follows:

Buildings 2% p.a. on cost

Motor Vehicles 20% p.a. on cost

Fixtures or Equipment (office related) 10% p.a. on cost

Plant and Machinery 10% p.a. on cost

Full year depreciation on year of acquisition and non in year of disposal vii. The building was revalued by the chartered surveyor at GH12,000 as at 31st

December 2019 in the accounts. The building is occupied between the factory and

office in the ratio of 60% and 40% respectively.

viii. During the year, the following additions to PPE were made.

GH000

Motor vehicles 500

Fixtures and fitting and Equipment 1,000

These have been recorded in the books

Required:

Prepare the final accounts for internal use and in conformity with relevant International Financial

Reporting Standards.

a. Statement of Profit or Loss and Other Comprehensive Income for the year ended

31st December, 2019.

b. Statement of Changes in Equity for the year ended 31st December, 2019.

c. Statement of Financial Position as at 31st December, 2019.

NOTE: All workings must be shown