Back Financial Reporting Q137imis tiaula thede Hecquitint Proptate Eo huli t id (4 marke) 10:41 LTE Back Financial Reporting Qtration rotk (4) QLTETION THREE The following trial balance relates to Koli Lud for the year ended 31 December, 2020 Additional information: i) The carrying value of inventories on 31 Decernber 2020 was GHe23 million. ii) Administrative expenves inclade a provision of GHeto million for the possible costs of a legal claim lodged against Koli Lad by ene of its cuatomen befoee 31 December 2020 . The directors of Koli Ltd consider that it is probable that Koli Ldd can soccessfully defend the case, but they are providing for the worst possible outcome on the grounds of prudence. The provision of GHe 10 million is for the amount soupht by the customer (GHe9.6 million) plus the directors' best extimate of the legal costs incurred in defending the case. If Koli t. Id suecessfully defends the case, then baved en the outcomes of similar cases in the past, it is likely (but not sure) that the customer will be required to reimburse Koli L.td for its legal costs iii) On I Jantary, 2020. Koli Lud paid Gills miltion for a ten-year expoet license iv) The cstimated income tax on the profits for the year to 31 December 2020 is GHe2.5 million. During the year. GHc2.2 million was paid in full and in the final settlement of income tax on the profits for the year ended 31 December 2019 . The statement of financial position on 31 December 2019 had incluaded GHe2.4 million in respect of this tax lability. A transfer of Gllel.4 million is sequired to increase the deferred tax liability in the statement of fintancial position; GHc 900,000 of this amount was necessary duc to the ta vable icmporary difference caused by the property retaleation (see note v below) QLTETION THREE The following trial balance relates to Koli Lud for the year ended 31 December, 2020 Additional information: i) The carrying value of inventories on 31 Decernber 2020 was GHe23 million. ii) Administrative expenves inclade a provision of GHeto million for the possible costs of a legal claim lodged against Koli Lad by ene of its cuatomen befoee 31 December 2020 . The directors of Koli Ltd consider that it is probable that Koli Ldd can soccessfully defend the case, but they are providing for the worst possible outcome on the grounds of prudence. The provision of GHe 10 million is for the amount soupht by the customer (GHe9.6 million) plus the directors' best extimate of the legal costs incurred in defending the case. If Koli t. Id suecessfully defends the case, then baved en the outcomes of similar cases in the past, it is likely (but not sure) that the customer will be required to reimburse Koli L.td for its legal costs iii) On I Jantary, 2020. Koli Lud paid Gills miltion for a ten-year expoet license iv) The cstimated income tax on the profits for the year to 31 December 2020 is GHe2.5 million. During the year. GHc2.2 million was paid in full and in the final settlement of income tax on the profits for the year ended 31 December 2019 . The statement of financial position on 31 December 2019 had incluaded GHe2.4 million in respect of this tax lability. A transfer of Gllel.4 million is sequired to increase the deferred tax liability in the statement of fintancial position; GHc 900,000 of this amount was necessary duc to the ta vable icmporary difference caused by the property retaleation (see note v below) Back Financial Reporting Q137imis tiaula thede Hecquitint Proptate Eo huli t id (4 marke) 10:41 LTE Back Financial Reporting Qtration rotk (4) QLTETION THREE The following trial balance relates to Koli Lud for the year ended 31 December, 2020 Additional information: i) The carrying value of inventories on 31 Decernber 2020 was GHe23 million. ii) Administrative expenves inclade a provision of GHeto million for the possible costs of a legal claim lodged against Koli Lad by ene of its cuatomen befoee 31 December 2020 . The directors of Koli Ltd consider that it is probable that Koli Ldd can soccessfully defend the case, but they are providing for the worst possible outcome on the grounds of prudence. The provision of GHe 10 million is for the amount soupht by the customer (GHe9.6 million) plus the directors' best extimate of the legal costs incurred in defending the case. If Koli t. Id suecessfully defends the case, then baved en the outcomes of similar cases in the past, it is likely (but not sure) that the customer will be required to reimburse Koli L.td for its legal costs iii) On I Jantary, 2020. Koli Lud paid Gills miltion for a ten-year expoet license iv) The cstimated income tax on the profits for the year to 31 December 2020 is GHe2.5 million. During the year. GHc2.2 million was paid in full and in the final settlement of income tax on the profits for the year ended 31 December 2019 . The statement of financial position on 31 December 2019 had incluaded GHe2.4 million in respect of this tax lability. A transfer of Gllel.4 million is sequired to increase the deferred tax liability in the statement of fintancial position; GHc 900,000 of this amount was necessary duc to the ta vable icmporary difference caused by the property retaleation (see note v below) QLTETION THREE The following trial balance relates to Koli Lud for the year ended 31 December, 2020 Additional information: i) The carrying value of inventories on 31 Decernber 2020 was GHe23 million. ii) Administrative expenves inclade a provision of GHeto million for the possible costs of a legal claim lodged against Koli Lad by ene of its cuatomen befoee 31 December 2020 . The directors of Koli Ltd consider that it is probable that Koli Ldd can soccessfully defend the case, but they are providing for the worst possible outcome on the grounds of prudence. The provision of GHe 10 million is for the amount soupht by the customer (GHe9.6 million) plus the directors' best extimate of the legal costs incurred in defending the case. If Koli t. Id suecessfully defends the case, then baved en the outcomes of similar cases in the past, it is likely (but not sure) that the customer will be required to reimburse Koli L.td for its legal costs iii) On I Jantary, 2020. Koli Lud paid Gills miltion for a ten-year expoet license iv) The cstimated income tax on the profits for the year to 31 December 2020 is GHe2.5 million. During the year. GHc2.2 million was paid in full and in the final settlement of income tax on the profits for the year ended 31 December 2019 . The statement of financial position on 31 December 2019 had incluaded GHe2.4 million in respect of this tax lability. A transfer of Gllel.4 million is sequired to increase the deferred tax liability in the statement of fintancial position; GHc 900,000 of this amount was necessary duc to the ta vable icmporary difference caused by the property retaleation (see note v below)