b) During 2018, Ekua Donkor Ltd discovered that certain items had been included in inventory at 31 December 2017, valued at GH 4.2m, which had in fact been sold before the year end. The following figures for 2017 (as reported) and 2018 (draft) are available. 2017 2018 (draft) GH 000 GH 000 Sales 47,400 67,200 Cost of goods sold (34,570) (55,800) Profit before taxation 12,830 11,400 Income taxes (3.849) (3.420) Net profit 8,981 7.980 Reserves at 1 January 2017 were GH 13m. The cost of goods sold for 2018 includes the GH 4.2m error in opening inventory. The income tax rate was 30% for 2017 and 2018. Required Show the statement of profit or loss and other comprehensive income for 2018, with the 2017 comparative, and retained earnings. [12 marks] 800 c) On 1 January 2018, Asaaba Ltd began the construction of new office building. Costs relating to the factory are as follows: GH Purchase price of land 20,000 Cost relating to the formal opening of the factory 400 Allocated General administrative overheads 1,200 Architects and Engineers fees directly related to the construction Cost of dismantling existing structures on the site 12,000 Employment costs (Notel) 3,600 Production overheads directly related to the construction (Note 2) 2,400 Cost of relocating staff who are to work at the new factory Interest on loan to partly finance factory construction (Note 3) 2,400 Plant and Machinery purchase for use in the factory 12,000 Note 1 The factory took nine months to construct and was put into use on 31 December 2018. The employment costs are for the year. Note 2 600 b) During 2018, Ekua Donkor Ltd discovered that certain items had been included in inventory at 31 December 2017, valued at GH 4.2m, which had in fact been sold before the year end. The following figures for 2017 (as reported) and 2018 (draft) are available. 2017 2018 (draft) GH 000 GH 000 Sales 47,400 67,200 Cost of goods sold (34,570) (55,800) Profit before taxation 12,830 11,400 Income taxes (3.849) (3.420) Net profit 8,981 7.980 Reserves at 1 January 2017 were GH 13m. The cost of goods sold for 2018 includes the GH 4.2m error in opening inventory. The income tax rate was 30% for 2017 and 2018. Required Show the statement of profit or loss and other comprehensive income for 2018, with the 2017 comparative, and retained earnings. [12 marks] 800 c) On 1 January 2018, Asaaba Ltd began the construction of new office building. Costs relating to the factory are as follows: GH Purchase price of land 20,000 Cost relating to the formal opening of the factory 400 Allocated General administrative overheads 1,200 Architects and Engineers fees directly related to the construction Cost of dismantling existing structures on the site 12,000 Employment costs (Notel) 3,600 Production overheads directly related to the construction (Note 2) 2,400 Cost of relocating staff who are to work at the new factory Interest on loan to partly finance factory construction (Note 3) 2,400 Plant and Machinery purchase for use in the factory 12,000 Note 1 The factory took nine months to construct and was put into use on 31 December 2018. The employment costs are for the year. Note 2 600 b) During 2018, Ekua Donkor Ltd discovered that certain items had been included in inventory at 31 December 2017, valued at GH 4.2m, which had in fact been sold before the year end. The following figures for 2017 (as reported) and 2018 (draft) are available. 2017 2018 (draft) GH 000 GH 000 Sales 47,400 67,200 Cost of goods sold (34,570) (55,800) Profit before taxation 12,830 11,400 Income taxes (3.849) (3.420) Net profit 8,981 7.980 Reserves at 1 January 2017 were GH 13m. The cost of goods sold for 2018 includes the GH 4.2m error in opening inventory. The income tax rate was 30% for 2017 and 2018. Required Show the statement of profit or loss and other comprehensive income for 2018, with the 2017 comparative, and retained earnings. [12 marks] 800 c) On 1 January 2018, Asaaba Ltd began the construction of new office building. Costs relating to the factory are as follows: GH Purchase price of land 20,000 Cost relating to the formal opening of the factory 400 Allocated General administrative overheads 1,200 Architects and Engineers fees directly related to the construction Cost of dismantling existing structures on the site 12,000 Employment costs (Notel) 3,600 Production overheads directly related to the construction (Note 2) 2,400 Cost of relocating staff who are to work at the new factory Interest on loan to partly finance factory construction (Note 3) 2,400 Plant and Machinery purchase for use in the factory 12,000 Note 1 The factory took nine months to construct and was put into use on 31 December 2018. The employment costs are for the year. Note 2 600 b) During 2018, Ekua Donkor Ltd discovered that certain items had been included in inventory at 31 December 2017, valued at GH 4.2m, which had in fact been sold before the year end. The following figures for 2017 (as reported) and 2018 (draft) are available. 2017 2018 (draft) GH 000 GH 000 Sales 47,400 67,200 Cost of goods sold (34,570) (55,800) Profit before taxation 12,830 11,400 Income taxes (3.849) (3.420) Net profit 8,981 7.980 Reserves at 1 January 2017 were GH 13m. The cost of goods sold for 2018 includes the GH 4.2m error in opening inventory. The income tax rate was 30% for 2017 and 2018. Required Show the statement of profit or loss and other comprehensive income for 2018, with the 2017 comparative, and retained earnings. [12 marks] 800 c) On 1 January 2018, Asaaba Ltd began the construction of new office building. Costs relating to the factory are as follows: GH Purchase price of land 20,000 Cost relating to the formal opening of the factory 400 Allocated General administrative overheads 1,200 Architects and Engineers fees directly related to the construction Cost of dismantling existing structures on the site 12,000 Employment costs (Notel) 3,600 Production overheads directly related to the construction (Note 2) 2,400 Cost of relocating staff who are to work at the new factory Interest on loan to partly finance factory construction (Note 3) 2,400 Plant and Machinery purchase for use in the factory 12,000 Note 1 The factory took nine months to construct and was put into use on 31 December 2018. The employment costs are for the year. Note 2 600